Survey finds majority of CEOs in Africa hopeful on economic outlook

CEOs in Africa are expressing a high level of optimism regarding the global economic recovery in 2021, with a whopping 68% believing that global economic growth will improve this year. The insights come from PwC's Annual Global CEO survey, which interviewed 50 CEOs from 14 African countries about their projections for the world economy post-COVID-19. Lulu Krugel, the Chief Economist at PwC South Africa, shed light on the key drivers behind this optimism during an interview with CNBC Africa. The survey findings align with other institutions like the World Bank, which has recently revised its growth forecasts upwards for 2021. The growing sense of confidence among African captains of industry reflects a global shift towards seeking growth opportunities after the challenging period of the pandemic. This change in mindset is evident worldwide, particularly in countries like China and the US, where robust economic recovery is underway. The optimism stemming from these global trends has resonated with African CEOs, signaling a hopeful outlook for economic growth in the region. However, it is noteworthy that African CEOs exhibit slightly lower optimism levels compared to their counterparts in other parts of the world. This discrepancy raises concerns about the potential impact on seizing growth opportunities and the need to bridge the gap in confidence levels between Africa and the rest of the world. The optimism among African CEOs is widespread across various sectors, with notable positivity in industries such as mining, digitalization, and telecommunications. The mining sector, in particular, has witnessed an upsurge in demand, signaling promising prospects for the future. Moreover, there is a significant emphasis on digital transformation and enhancing the continent's telecom infrastructure to enhance competitiveness globally. Another distinguishing factor is the focus on investing in human capital, indicating a recognition of the pivotal role of skilled workforce in driving economic growth. The survey highlights a commitment among African businesses to prioritize people development as a strategic imperative for fostering sustainable growth. While the buoyant sentiment among African CEOs bodes well for economic recovery, challenges persist in translating this optimism into tangible outcomes such as job creation. Despite a positive shift towards hiring expectations, African CEOs are exercising caution, reflecting a 'wait-and-see' approach towards employment decisions. Concerns around the sustainability of positive economic trends and the ability to effectively compete in the global landscape are among the factors that continue to weigh on the minds of African CEOs. The need to accelerate vaccination drives on the continent to reach herd immunity and bolster economic resilience remains a critical priority. As Africa navigates the path towards recovery, it is essential for stakeholders to harness the current optimism and channel it into constructive actions that drive inclusive growth and enhance competitiveness on the global stage.