(MENAFN- The Arabian Post)

CEOs across Africa are signalling substantial confidence in their firms' growth prospects, driven by plans for increased hiring and investment in artificial intelligence, according to a newly published survey by KPMG. The study shows that 79 % of surveyed executives believe their own organisations will grow, while 88 % plan staff increases within the next year.

The survey, covering more than 130 executives across the continent, reveals that 61 % of CEOs intend to boost spending on AI, while 62 % are focused on retaining or retraining high-potential talent. Growth confidence extends to the acquisition space, with 86 % of respondents expecting to make or be likely to make acquisitions in the coming three years, up from 77 % in the previous survey.

Despite this upbeat corporate mood, the backdrop remains challenging. Only 63 % of respondents expressed confidence in their country's economic outlook, and just 53 % felt similarly about the global economy. Key concerns cited by CEOs include Integrating AI into operations, navigating regulatory pressures and strengthening cybersecurity defences.

Speaking on corporate sentiment, Gerald Kasimu, Partner and Advisory Head at KPMG East Africa, highlighted that AI is no longer viewed as an experimental luxury but a central plank of growth strategy.“CEOs are now embedding AI into their operations and talent plans, not simply waiting on conditions to improve,” he said.

For many African companies, the focus has shifted to workforce augmentation rather than contraction. The survey finds that 96 % of CEOs say data-readiness is a challenge when implementing AI in their organisations. Meanwhile, 81 % believe that up-skilling the workforce in AI will directly impact organisational success, compared with 77 % globally, and 67 % say they are already redeploying staff into AI-enabled roles.

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Regional dynamics reveal some variation. In East Africa, 76 % of CEOs are confident in their company's growth prospects, compared with 62 % in East Africa regarding national economies and just 50 % for the global economy. CEOs in the region are prioritising skills development, digital resilience and restructuring workforce models to reflect the evolving impact of generative AI and automation.

A central theme for many executives is the challenge of talent. While competition with global tech firms and high salary demands remain obstacles, African CEOs appear more focused on internal talent development than external recruitment. Only 64 % see talent competition as a negative impact, compared with 70 % globally.

Technology infrastructure remains a practical barrier: power unreliability, limited broadband connectivity and outdated computing systems are cited as constraints to AI deployment. Yet, 34 % of African CEOs are investing in technology and solution innovation compared with 26 % of their global peers.

On mergers and acquisitions, Africa shows a growing appetite: 86 % expect to make or be likely to make acquisitions within three years, signalling confidence in expansion despite macro-headwinds. But a cautious approach remains in place: only 31 % are planning strategic model changes within two to five years, and many anticipate modest annual growth.

Environmental, social and governance factors are also gaining prominence. While 79 % of African CEOs are confident their organisations can adapt to differing regulatory and political conditions in ESG, only 46 % say they are aligning sustainability goals with core business strategies.

Kasimu noted that company culture and leadership style are evolving in response to these pressures.“Leadership now demands AI literacy, agile decision-making and cultural transformation. It is no longer just about profit,” he said.

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