African business leaders are more worried about changing regulations than their counterparts elsewhere across the world.
- A significant concern for 57% of industry captains polled in the 28th annual PwC CEOs survey is the potential changes in the regulatory environment, a figure significantly higher than the global average of 42%.
- Key trade-related policies, such as the expiring Africa Growth and Opportunity Act (AGOA) and the potential implementation of AfCFTA policies, raise more concern.
- This heightened anxiety underscores the unique regulatory pressures faced by businesses in Sub-Saharan Africa, where evolving policies can significantly impact operational stability and strategic planning.
“The regulatory environment still presents challenges, including complexity, inefficiencies, enforcement issues and potential reversals that could negatively impact the ease of doing business and investor confidence,” notes Duncan Adriaans Africa Private Company Sector Leader, PwC South Africa.
“In Sub-Saharan Africa, leaders of private and family businesses are particularly apprehensive about regulatory changes due to the region’s dynamic and often unpredictable policy landscape. Unlike their global counterparts, these private business leaders face unpredictable regulatory developments that can disrupt business operations, impair capital investment, and significantly diminish return on investment,” he says.
The rising costs of products and services, cited by 33% of CEOs, strains business operations and market competitiveness, causing further concern for business viability. Additionally, regulatory shifts, cost pressures and competitive forces create a complex operating environment that amplify business risk. Strong competition presents another critical challenge, with 31% of CEOs highlighting its impact on market entry and growth prospects. To address these challenges, region-specific solutions required.
Overall, business leaders in Sub-Saharan Africa are somewhat more confident about revenue growth compared to the global average. This reflects more of the opportunities and prospects in the short-term arising from expected macroeconomic stability, improving consumer spending, increased investment and declining inflation rates.
