Since our last newsletter in February, the impact of the US’s change in position with regards to global tariffs and the evolving trade dynamic has created challenges and uncertainty. Once resolved and a new normal becomes apparent, this will also create opportunities. The AfCFTA and its continued evolution is now even more important than ever, providing the harmonisation of cross-border trade which can only be a good thing for the continent.

In other news:

• The integration of emerging technologies, particularly generative AI, is a significant focus for CEOs. However, 77% of African CEOs view ethical concerns (such as data privacy and bias in AI systems) as the biggest barriers to adopting AI. Additionally, 78% are uncertain as to whether their workforce has the skills to fully leverage AI, highlighting the need for upskilling and ethical implementation.
• Despite high unemployment rates, CEOs are facing difficulties in filling positions due to a shortage of qualified candidates. This paradox is particularly evident in regions like East Africa, where 39% of CEOs are concerned about losing skilled workers to migration. Additionally, 29% of CEOs in East Africa report a lack of skills within their company’s workforce, and 24% cite infrastructure challenges as barriers to value creation.
• Employee engagement remains critically low across Sub-Saharan Africa, with only 20% of employees reporting high engagement at work. A staggering 75% of people are actively seeking new opportunities (across all role levels, not necessarily senior positions), and 48% experience significant stress; well above the global average. This disengagement leads to high turnover rates and increased recruitment costs, as organisations struggle to retain talent .
• CEOs are increasingly focusing on factors that will drive their economic viability, with 64% identifying making the correct strategic choices and enhancing organisational efficiency as the factors that will most influence their businesses’ economic viability. However, 57% of CEOs express concern about potential changes in the regulatory environment, which is higher than the global average of 42%.
• Inflation and macroeconomic volatility are significant concerns for CEOs in Sub-Saharan Africa. 42% of CEOs report feeling vulnerable to inflationary pressures, significantly higher than the global average of 27%. Additionally, one in four CEOs feel vulnerable to cyber threats, workforce skill gaps, and geopolitical conflicts, each surpassing the global average.

May 2025

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