JOHANNESBURG, S. Africa: July 19 (Xinhua) — Africa business leaders are optimistic about investment opportunities and business growth in the region, according to a new report released Thursday.
The report by accounting firm Price Waterhouse Coopers (PwC) said Africa Chief Executive officers (CEOs) expect their operations to grow within the next 12 months despite the recent economic uncertainty, with 95 percent of them envisaging long-term growth in the next three years.
PwC South Africa CEO Suresh Kana said the report titled “Africa Business Agenda” shows that optimism about Africa’s growth trajectory is well-founded in fact and experience.
“The Agenda shows that growth opportunities in Africa are abundant and this is leading to unprecedented levels of confidence from CEOs. Even though the economic climate remains challenging, CEOs in Africa are more upbeat about prospects for economic growth than their international counterparts,” Kana said.
Almost all of the CEOs in Africa expect their business to grow in the next 12 months, whereas PwC’s Global CEO Survey shows that only 75 percent of global business leaders expect their organizations to do the same, said Kana who is also Senior Territory Partner for PwC.
According to the report, the optimism among African CEO’s is being fuelled by the current and anticipated growth prevalent across all markets, industries and geographic regions, which are being experienced across the continent.
The report is based on a survey of 201 CEOs in Angola, Ghana, Kenya, Mauritius, Nigeria, Rwanda, South Africa, Tanzania, Uganda and Zambia. The survey was augmented by in-depth interviews and discussions with CEOs in April and May 2012.
According to the report African CEOs say the best strategic growth opportunities in the next 12 months will come from new products or service developments 27 percent, an increased share in existing markets 27 percent, new geographic markets 24 percent, new joint ventures or strategic alliances 13 percent, and mergers and acquisitions 7 percent.
Kana said confidence among South African CEOs remains positive.
“In the mid-term South African CEOs are as confident about growth as CEOs in the emerging economies, believing that it will gain momentum in the next three years,” he said.
However the report indicates that the 79 percent of African CEOs are concerned about economic risks of doing business in the continent. “CEOs are also concerned about other policy risks such as uncertain or volatile economic growth, fluctuations in the exchange rates, inflation and over-regulation,” says the report.
Other challenges of doing business in Africa PwC say include the availability of key skills, energy costs and an increasing tax burden.
“Bribery and corruption are considered a major risk to economic growth by 69 percent of African CEOs and 66 percent of South African CEOs,” Kana said. (Xinhua)
