East African CEOs view on the current macroeconomic volatility

In a recent survey conducted by PwC, it has been found that global CEOs are increasingly concerned about being exposed to macroeconomic volatility. The East African region is no exception, with CEOs expressing worry about inflation in both the short and medium term. Peter Ngahu, the Regional Senior Partner at PwC for the East Africa region, shed light on the key highlights from the survey and the strategies that CEOs are employing to navigate these challenging times. The survey, conducted between October and November 2022, included 4,410 CEOs globally, with 138 of them hailing from East Africa. One of the standout findings was that 65% of CEOs in East Africa anticipate a decline in global economic performance, yet 60% are optimistic about the economic performance in their respective countries over the next 12 months. This optimism underscores the resilience and confidence of CEOs in the region despite the looming macroeconomic uncertainties. Key strategies being implemented by business leaders in East Africa include partnering with industry players, reducing operating costs, diversifying product and service offerings, and exploring new supply chain options. These proactive measures aim to cushion businesses against the unpredictable macroeconomic landscape and ensure sustainability in the face of challenges. Moreover, CEOs are prioritizing investments in upskilling their workforce and incorporating technology to enhance operational efficiency and future readiness. Cybersecurity has emerged as a prominent risk that CEOs are cognizant of amidst the rapid technological advancements. Additionally, CEOs in East Africa are increasingly focusing on climate change and sustainability, with plans to reduce carbon emissions and adopt environmentally friendly practices. While the majority of CEOs are confident about their economic viability in the next decade, there is a recognition that business models may need to evolve and adapt to changing environments. The resilience and adaptability of businesses in East Africa are evident, with opportunities for growth and investment present in the region despite the prevailing macroeconomic challenges. Foreign direct investments continue to flow into key countries like Kenya, Nigeria, South Africa, and Egypt, signaling a positive outlook for economic prospects. As CEOs navigate the complexities of macroeconomic volatility, the emphasis remains on agility, innovation, and strategic partnerships to ensure sustained success in the dynamic business landscape of East Africa.