CEOs upbeat on economic outlook

The Merchantec CEO Confidence Index has revealed a 7 per cent increase in CEO confidence in the third quarter of this year, reaching a score of 55.0. This surge in confidence among business leaders is anticipated to trigger heightened investments in key areas such as capital expenditure, personnel expansion, acquisitions, and more. Charmaine Houvet, the Senior Director of Government Strategy and Policy at Cisco Africa, sheds light on the cautious optimism prevailing among CEOs while addressing some of the concerns that underlie this sentiment. Houvet emphasizes the pressing issue of the skills shortage, particularly in digital domains, attributing it to the escalating demand for talent and the rapid advancement of new technologies. Moreover, the escalating digitalization trend is accompanied by increased cybersecurity threats, posing critical challenges that necessitate skilled professionals to counter effectively. One pivotal challenge across the African continent is the scarcity of proficient individuals capable of addressing these complex cyber threats. However, amid the notable highs reflected in the CEO Confidence Index, there are pressing issues necessitating attention. The hesitancy among CEOs is laced with considerations of the region's digital divide and the limited access to advanced digital technology among a significant portion of the population. Furthermore, communication services registered a 4% decline, raising concerns about the sector's performance, while healthcare faces uncertainties stemming from regulatory changes and cost pressures. The policy uncertainty surrounding healthcare, highlighted by initiatives like the National Health Insurance (NHI), poses challenges in broadening healthcare accessibility to underserved populations. In response to these concerns, Houvet underscores the need for collaboration and swift decision-making between different sectors to address the trust deficit and enhance citizen access to essential services. CEO optimism has surged notably compared to previous years, displaying a more upbeat outlook and a growing willingness to collaborate with various stakeholders, including government entities, industry partners, and civil society organizations. The shift towards enabling policies and greater regulatory certainty has instilled a sense of confidence among investors, signaling a positive trajectory for the region's economic prospects. Key aspects guiding future CEO dialogue and policy formulation include prioritizing connectivity, robust consultation processes, and accelerated execution of initiatives. By fostering inclusive dialogues and expediting policy implementation, African economies aim to capitalize on the current wave of CEO optimism and drive sustainable growth and development.