LESS than half of East African Chief Executive Officers (CEOs) are optimistic about substantial regional economic growth in the next three years, a latest KPMG East Africa and Africa CEO Outlook Survey shows.
The 2024 KPMG East Africa and Africa CEO Outlook Survey report showed that 48 per cent of 50 CEOs from Uganda, Kenya, Tanzania, Rwanda and Ethiopia stipulated they have a positive outlook regarding the growth prospects in the economy over the next three years given the substantive investments expected in the infrastructure and energy projects KPMG Country Managing Partner for Tanzania, Alexander Njombe, told reporters on Wednesday that a large percentage of CEOs still have hope that they can find opportunities to grow their businesses, despite a backdrop of global economic uncertainties, geopolitical tensions in the region and competition for talent within a limited pool.
“The CEOs have stipulated that they have a positive outlook regarding the growth prospects in the economy…given the substantive investments expected in the infrastructure and energy investments,” Mr Njombe said.
However, public health risks have emerged as a primary threat, with 62 per cent of CEOs citing these risks as a significant obstacle to growth, alongside other concerns such as failure to adopt climate-change strategies, cyber-crime and regulatory risks.
“Now more than ever, CEOs are feeling increased pressure to ensure long-term business success due to several converging factors,” Mr Njombe said.
Additionally, he said CEOs in East Africa are strategically adapting their business approaches to navigate a complex landscape filled with both opportunities and challenges.
“The key focus for CEOs will be the ability to adopt new technologies such as AI [Artificial Intelligence] and cloud computing to improve productivity and customer engagement, a shift accelerated by the pandemic,” he said.
Also, CEOs in East Africa were encouraged to use AI to grow their businesses because the technology can bring significant and positive changes to their organisations and companies.
“Global CEOs are more aggressive in their approach to AI implementation compared to their African counterparts,” he said.
Tigo Pesa CEO Ms Angelica Pesha said that there is a need to intensify the use of AI since the customer needs are changing day by day due to advancements in technology.