This is according to the KPMG 2025 Africa CEO Outlook Survey, which captures the perspectives of 130 CEOs across Southern, East, and West Africa. The survey found that despite global economic uncertainty and geopolitical tensions, African CEOs are optimistic about their own organisations’ growth prospects.

The CEOs had expressed strong business confidence (78%) which is up by more than 12% year on year and 98% expecting business expansion over the short term.

They also identified three pressing challenges to doing business in Africa including: integrating AI into core operations (32%), managing regulatory pressures (25%), and strengthening cybersecurity (24%). 

The survey found that 71% of CEOs are investing in AI to drive operational efficiency and long-term resilience, where 26% plan to allocate more than 20% of their annual budget to AI, nearly double the global average of 14%.

Talent remains central to AI adoption and organisational transformation with 81% of African CEOs believing that upskilling in AI will directly impact their success. 67% are redeploying staff into AI-enabled roles and 88% expect to increase headcount.

Infrastructure challenges and data readiness

However the gaps in infrastructure and technology continue to be a concern for organisations.

Many companies still face unreliable power supply, limited broadband connectivity, and outdated computing systems that restrict the use of data-intensive AI solutions.

CEOs in the survey also raised the issue of data readiness, highlighting the need for local data curation and infrastructure investment.

“To deploy and scale AI, African organisations are faced with three options: build, buy or partner. Each organisation must weigh the pros and cons of building, buying, or partnering for AI solutions. There is no one-size-fits-all-approach. The right strategy depends on the organisations’ existing capabilities, risk appetite, and strategic objectives.

“A sustainable approach should be shaped by the business context, the desired outcomes, and the ability to scale and govern AI effectively,” Joelene Pierce, CEO Designate of KPMG South Africa.