PwC’s 27th Annual Global CEO Survey - West Africa

PwC released its 27th Annual Global CEO Survey, which polled 4,702 CEOs in 105 countries and territories from 2 October to 10 November 2023. From a West African  perspective, 43 CEOs were interviewed.

Findings from our West Market Area (WMA) report show that CEOs in West Africa are more optimistic about global economic growth prospects compared to their global counterparts  — 60% of CEOs in West Africa expect global growth to improve in 2024 compared to a 38% global sentiment. 51% of CEOs  in West Africa expect their local economy to decline compared to global CEOs (37%).

Key results based on four focus areas:

• Business model viability

As CEOs become more aware of the megatrends facing businesses globally, survey respondents expressed increased concern around their long-term business viability. Almost half (45%) note they are concerned their businesses will not be viable beyond the next decade without reinvention - up from 23% in 2023. A significant 42% of West African CEOs consider the

regulatory environment as a major hindrance to their company’s ability to innovate in value creation. This sentiment aligns with the longstanding challenges of doing business in Africa, as highlighted by the 2011 African Development Bank Report, which ranked the continent’s regulatory framework as one of the least business-friendly globally. 

Next step for CEOs

Top-performing companies continuously reinvent their business models to stay ahead. Reinvention enables them to seize opportunities and counter threats more effectively. CEOs must address internal barriers like competing priorities, financial constraints, skill gaps, and red tape to successfully reinvent their business models for long-term success

• Positioning for change

CEOs recognise the impact of innovative actions on their business. 65% of West African CEOs have noted the significant impact of adopting new technologies on their businesses’ ability to create, deliver, and capture value over the past five years. Additionally, 49%  identified the development of innovative products and services as a key driver of value creation in their

businesses.

Next step for CEOs in West Africa

Technology is key to business model reinvention. It requires a mindset shift and a culture of continuous learning and innovation, not just adopting new tools or digital transformation. West African CEOs can leverage technology to drive sustainable growth in a competitive landscape by investing in their workforce, leveraging AI and machine learning for automation and prioritising cybersecurity measures.

• Generative AI

CEOs overwhelmingly see generative AI as a catalyst for reinvention that will power efficiency, innovation, and transformational change. Slightly over half (51%) believe it will significantly change the way their company creates, delivers, and captures value in the next three years.

But while CEOs are increasingly looking to the transformative benefits of generative AI,the majority have expressed concern about an associated rise in cybersecurity risk, misinformation, andlegal liabilities and reputation risks.

Next step for CEOs

As with any powerful tool, the key to successful adoption lies in understanding its use, addressing the risks, and guiding its application ethically and responsibly. It’s about using AI to create a more efficient, responsive and citizen-centric environment while ensuring privacy, fairness, transparency and accountability.

• Sustainability

As the world increasingly shifts towards sustainable practices, there’s growing pressure on businesses to reduce their carbon footprint and embrace environmentally friendly strategies. However, West African CEOs face unique challenges when it comes to integrating decarbonisation in their business models. Lack of demand from stakeholders (23%) and regulatory complexity (18%) are the biggest factors inhibiting West African CEOs’ ability to decarbonise.

Next step for CEOs in West Africa

Addressing climate change is a strategic imperative for businesses. It's a disruptor and catalyst for innovation, impacting value creation, delivery, and capture. Proactive businesses will seize the initiative and not wait for stakeholders to demand ESG adoption. Embracing sustainability strengthens long-term resilience and fuels growth in a rapidly changing global market.