African CEOs Stay Bullish: AI, Talent, ESG and Security Move to the Top of the Agenda
Africa's top executives are leaning into growth even as global uncertainty keeps pressure on margins and supply chains. The latest KPMG 2025 Africa CEO Outlook shows confidence rebounding, with 78% reporting strong business confidence (up more than 12% year-on-year) and 98% expecting short-term expansion.
M&A appetite has surged. About 86% say they're likely to pursue acquisitions in the next three years - up 77% from last year. Confidence in domestic markets is rising too, with 63% optimistic about their country's prospects, up from 61% in 2024.
What's Setting Strategy in 2026: AI, Talent, ESG, Cyber
Four forces are setting the near-term playbook: generative AI, talent, ESG and cybersecurity. Locally, CEOs point to three immediate hurdles: integrating AI into core operations (32%), managing regulatory pressures (25%) and strengthening cybersecurity (24%).
Despite the pressure, 72% have adjusted their growth strategies to match market conditions. As one executive put it at the report launch in Nairobi, leaders in Africa have learned to lead through volatility - and use it to find opportunity.
AI Moves From Pilot to P&L
AI is the top strategic priority heading into 2026. Some 71% are investing to drive efficiency and resilience, and 26% plan to allocate more than 20% of their annual budget to AI - nearly double the global average of 14%. Leaders across West (65%), East (40%) and Southern Africa (38%) see AI as an immediate lever for better decisions and stronger operations.
There are frictions: unreliable power, limited broadband and ageing compute hold back data-intensive use cases. A striking 96% cite data readiness as a constraint, along with concerns about ethics, regulation and data integrity. The response is pragmatic: 45% are prioritising cybersecurity and digital resilience, 40% are integrating AI across workflows, and 34% are backing near-term, scalable solutions.
Cyber Risk Is Rising - Quantum Risk Is Underestimated
As digital adoption accelerates, encryption risk from future quantum computing sits on the horizon. Yet concern remains low: 14% in West Africa, 22% in Southern Africa and 35% in East Africa flag it as a risk. That gap could become costly as more data moves across borders and into AI pipelines.
If you haven't started planning post-quantum cryptography, review guidance from standards bodies such as NIST and build a migration map tied to data retention policies.
Talent: Upskill First, Redeploy Fast
AI adoption is a people strategy. About 81% of CEOs believe AI upskilling will directly impact outcomes, 67% are redeploying staff into AI-enabled roles and 88% expect to increase headcount. The signal is clear: AI augments capability; it doesn't replace it.
Africa's younger workforce is an advantage. Only 15% report generational gaps in critical future skills (vs 30% globally). Regionally, West Africa leads on redesigning roles and careers for AI collaboration (65%) and redeploying staff (70%). East Africa leads on hiring new AI/tech talent (62%). Southern Africa is balancing all three.
If you're building a pipeline, consider structured learning paths for executives, operators and specialists. For curated options by role, see Complete AI Training: Courses by Job.
ESG: Commitment Is Strong, Execution Needs Lift
Commitment remains high, with 79% confident in handling ESG regulations across markets. Still, only 55% feel equipped to meet new reporting standards - well below global peers at 77%. The toughest barrier: decarbonising supply chains (21%), compounded by skills gaps.
Even so, delivery is advancing. About 74% are applying AI to reduce emissions and improve energy efficiency, and 46% are embedding sustainability into core strategy. West Africa leads in prioritising compliance and reporting at 60% (East: 48%; Southern: 35%).
Practical Moves for Executives
- Put AI in the budget, not the lab: ring-fence spend, set 90-day operational use cases, and score ROI on efficiency, quality and risk reduction.
- Fix data readiness: invest in clean pipelines, governance and local data curation. Tie AI adoption to clear data ownership and retention rules.
- Engineer for trust: adopt "security and privacy by design," use trusted AI frameworks, and audit models for bias, provenance and performance drift.
- Close the skills gap: map roles to AI collaboration, redeploy with structured sprints, and certify teams on core tools and governance. Explore relevant certifications.
- Prepare for post-quantum: inventory cryptography, classify long-lived data, and set a staged migration to PQC standards.
- ESG as an operator's metric: automate data capture, connect energy and emissions data to cost levers, and align reporting with investor priorities.
- Use M&A to accelerate capability: target data platforms, cybersecurity, and AI tooling that shorten the build cycle.
- Partner locally: work with universities, regulators and utilities to mitigate infrastructure gaps and build talent pipelines.
The takeaway: confidence is back because plans are concrete. AI is moving into core operations, talent is being reskilled at scale, and ESG is moving from reporting to performance. For more on the global context, review KPMG's CEO Outlook materials here.
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