Onome Amuge
African corporate leaders are making their most decisive bet yet on artificial intelligence and workforce transformation, positioning technology and human capital as the twin engines of the continent’s next growth phase, even as infrastructure deficits, regulatory complexity, and global uncertainty temper their ambitions.
According to KPMG’s 2025 Global CEO Outlook: Africa Edition, nearly 71 per cent of African chief executives are prioritising investments in AI and talent development as strategic imperatives for growth and resilience. The report, which surveyed 130 CEOs across Southern, East, and West Africa, reveals a striking divergence from global sentiment, showing that while global CEO confidence in the economy has dipped to its lowest level in five years, African leaders are doubling down on technology-led transformation.
The findings show that 26 per cent of African CEOs plan to allocate more than 20 per cent of their annual budgets to AI initiatives heading into 2026, almost double the global average of 14 per cent. That level of commitment underscores a region-wide shift toward digital competitiveness, even as the continent continues to battle unreliable electricity, weak broadband infrastructure, and uneven digital readiness.
“African organisations are faced with three options when deploying and scaling AI: build, buy, or partner. Each strategy depends on existing capabilities, risk appetite, and strategic objectives. What’s clear is that leaders recognise AI’s transformative power and want to be ahead of the curve rather than catch up later,” said Joelene Pierce, CEO Designate of KPMG South Africa.
While much of the developed world’s C-suite is approaching AI with caution, being concerned about regulation, privacy, and ethical use, African CEOs are displaying a distinctly pragmatic optimism. The report indicates that AI is not being viewed as a disruptor but as a lever for inclusion and productivity, particularly in sectors such as financial services, healthcare, agriculture, and logistics, where automation and data analytics can compensate for resource constraints.
However, optimism coexists with realism. KPMG’s data show that 96 per cent of African CEOs cite data readiness”as a major challenge, reflecting a lack of structured data, outdated computing systems, and inconsistent connectivity that limit the application of data-intensive AI tools.
“These infrastructure gaps are not just technical hurdles; they represent structural barriers to competitiveness. Without reliable power and broadband, even the most ambitious digital strategies risk being stranded,”said Pierce.
In countries such as Nigeria, Kenya, and South Africa, where governments have announced national AI frameworks, progress remains uneven. Private-sector leaders are increasingly partnering with startups, universities, and development finance institutions to develop localized AI solutions. However, experts warn that without stronger ecosystem support, the pace of adoption could remain limited.
Beyond technology, talent transformation is emerging as the most powerful theme in Africa’s corporate strategy narrative. KPMG found that 81 per cent of African CEOs believe upskilling in AI-related competencies will directly impact business success, while 88 per cent expect to increase headcount in the coming year.
Crucially, 67 per cent are redeploying staff into AI-enabled roles, reinforcing the argument that AI is enhancing rather than displacing human capabilities. With Africa’s median age under 20, executives see the youthful workforce as a demographic advantage, providing a longer runway to build “future-ready” talent pipelines.
“Africa’s young workforce is both an opportunity and a responsibility. It gives businesses the time and flexibility to integrate AI into education, training, and workforce planning—areas where the continent can leapfrog traditional models,” said Ignatius Sehoole, CEO of KPMG One Africa.
By comparison, only 15 per cent of African CEOs reported significant generational gaps in AI-related skills, versus 30 per cent globally; a sign that the region’s workforce transition may be smoother than anticipated if digital literacy efforts accelerate.
Even as African CEOs embrace technology and talent, they remain acutely aware of external shocks. Twenty-two per cent cited geopolitical uncertainty, including regional conflicts, shifting trade alignments, and election cycles, as the biggest threat to growth over the next three years. That proportion exceeds the number concerned about emerging technologies or overregulation.
Such caution reflects a volatile global backdrop. Across the broader KPMG global sample of 1,350 CEOs, confidence in the world economy has fallen notably, with only 68 per cent expressing optimism about near-term prospects. In Africa, by contrast, 78 per cent remain upbeat, indicating that regional leaders view disruption as an opportunity rather than a deterrent.
“Resilience and innovation will define Africa’s growth story. The mood here is not denial of global risk—it’s determination to turn adversity into advantage,” said Sehoole.
While AI and talent remain the main drivers of optimism, the picture is more complex when it comes to environmental, social, and governance (ESG) commitments. Seventy-nine per cent of African CEOs say they are confident in navigating regulatory differences across markets, yet only 55 per cent believe they have the capacity to meet new reporting standards, compared with a global average of 77 per cent.
This gap highlights the mounting compliance challenges facing African companies as global ESG standards evolve. From carbon disclosure requirements to supply chain transparency, many firms are struggling to align with frameworks that demand significant investment in monitoring systems, data infrastructure, and technical expertise.
Twenty-one per cent of CEOs identified the difficulty of decarbonising supply chains as the most significant barrier to achieving net-zero commitments, while a lack of skilled professionals in sustainability management further erodes confidence.
“The sustainability transition is real, but African firms are at different stages of the journey. The challenge is ensuring that regulatory ambition is matched with financial and technical support. Without that balance, ESG compliance could widen the gap between global and African markets,” noted Pierce.
Analysts say the corporate shift toward AI and talent must be complemented by stronger public investment in digital and energy infrastructure. The African Development Bank estimates that the continent faces a $100 billion annual infrastructure financing gap, much of it in power and connectivity; both prerequisites for digital transformation.
At the same time, development partners are expanding support. Initiatives such as the Smart Africa Alliance, AfCFTA’s digital trade framework, and bilateral AI partnerships with Europe and Asia are beginning to create common standards and funding channels.
Private equity investors are also paying attention. According to AVCA data, AI and fintech startups in Africa attracted over $1.2 billion in funding in 2024, reflecting rising investor confidence in the digital economy’s long-term potential.
Many analysts see the 2025 CEO Outlook as a defining moment in African corporate strategy, signaling a shift from defensive resilience toward proactive transformation. Although infrastructure and regulatory challenges across the continent remain significant, business leaders appear increasingly aligned in their determination to build a technology-driven future.
While corporate leaders in other parts of the world are becoming more cautious, Africa’s executives are demonstrating a greater willingness to take calculated risks. The real challenge, experts note, will be ensuring that ambitious investments in artificial intelligence, talent development, and sustainability translate into lasting competitiveness and inclusive growth across the continent.
