Africa's CEOs Call Innovation Critical - But Few Will Bet Big
Only 13% of chief executives in Africa are willing to tolerate high risk in innovation projects, even as 55% say innovation is critical to their strategy. That gap between intent and action is the headline from PwC's 29th Global CEO Survey.
The survey polled more than 150 CEOs in Africa and points to leaders who have strengthened operational resilience, yet remain cautious on the bold investments needed for long-term advantage.
Survey snapshot
- 81% of African CEOs expect economic improvement vs. 65% globally.
- 47% anticipate revenue growth in the next 12 months.
- 51% spend most of their time on sub-one-year priorities; only 15% plan five years out.
- 59% report little to no change in spending; 8% are willing to make large investments amid geopolitical uncertainty.
- Only 13% will tolerate high risk in innovation projects, despite 55% calling innovation critical.
"The uncertainty we all live with today needs to be accepted as the new norm," said Dion Shango, PwC Africa chief executive. He added that strategies must stay flexible and responsive to avoid being undermined by sudden disruptions.
Short-term focus is costing momentum
Optimism is high, but the time horizon is narrow. Capital stays on the sidelines, projects get sliced into safe increments, and transformative bets wait for "clarity" that rarely arrives.
The result: organizations protect the present while competitors compound advantage in areas like data, infrastructure and talent.
AI adoption: progress, but a governance deficit
- 37% say they can find and retain the AI talent they need.
- 41% have defined AI roadmaps; 37% have responsible AI and risk processes.
- Overall AI adoption rose to 75%.
- 23% report revenue growth from AI; 25% report cost reductions.
- Only 26% believe current investment levels are sufficient to meet AI goals.
"The challenge is fundamentally a governance deficit rather than a lack of ambition," said Vikas Sharma, Africa cyber leader at PwC Mauritius. He pointed to trusted data, secure infrastructure and clear accountability as the unlocks.
For a deeper read on the global findings, see PwC's Global CEO Survey.
Diversification and deal flow are working
Diversification is delivering. 47% of African CEOs say their companies entered new sectors in the past five years, with about 24% of revenue now coming from these newer businesses.
- Planned expansion: technology (17%), real estate (13%), retail (13%), transport and logistics (12%).
- 40% plan acquisitions over the next three years, near the global average of 46%.
Motivations include market share gains, portfolio diversification and scale efficiencies. Discipline still matters: integration capability and cash conversion should set the ceiling on deal velocity.
What this means for strategy
- Reframe risk: set a portfolio of bets (core, adjacent, new). Cap downside with stage gates; reserve budget for experiments that can graduate fast.
- Fund a 3-5 year view: ring-fence at least 10-15% of capex/opex for medium-term plays so quarterly noise doesn't starve future earnings.
- Make AI investable: establish data ownership, security baselines and model risk policies. Tie each AI use case to a P&L owner and a clear KPI (cycle time, gross margin, churn).
- Build talent pipelines: combine targeted hiring with internal academies and vendor partnerships. Upskill operators, not just a central team.
- Exploit infrastructure tailwinds: as digital networks and internet exchange capacity expand, move latency-sensitive and data-intensive workloads closer to customers.
- Deal discipline: use a simple filter-does this acquisition accelerate our AI/data leverage, customer access, or unit economics within 12-24 months?
The reinvention challenge
Resilience kept businesses steady through currency swings, political shocks and infrastructure gaps. But resilience without reinvestment leaves compounding on the table.
The continent's expanding digital backbone offers room to move. Whether that turns into advantage depends on converting strategic intent into calculated risk.
"Africa's CEOs are not short on ambition or ability," said Hannelie Gilmour, consulting and transformation platform leader at PwC South Africa. "The leaders who shape the next phase of business in Africa will be those who understand that future stability depends on today's innovation."
Next step for executives
- Pick three AI use cases that hit revenue or cost within two quarters; fund them properly and publish a scorecard.
- Stand up a responsible AI and data governance council within 90 days.
- Commit a fixed percentage of annual spend to innovation with clear stage gates and kill criteria.
- Audit your M&A pipeline against integration capacity and data/AI synergy.
If upskilling is a constraint, explore curated AI courses by job to accelerate talent readiness across functions.
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