CAPE TOWN C Rapidly many challenges in the local economy, CEOs in Africa remain optimistic in regards to the country’s growth prospects. Good? 2016 KPMG CEO Outlook 68% of local CEOs surveyed were either ‘confident’ or ‘very confident’ about Africa showing increase in the next Twelve months and 90% were either ‘confident’ or ‘very confident’ about growth prospects above the next several years.
Not 1 CEO noted being ‘in no way confident’ about growth over either period of time.
Local CEOs were also extremely upbeat regarding the growth prospects of their own companies, with 90% being either ‘confident’ or ‘very confident’ about increase in your next Calendar year.
However, the survey findings did declare that CEOs are usually not as optimistic around the rates of growth that they’ll expect. Regardless of the current sluggishness in the local economy, 46% of South African CEOs asserted they believed america are at peak boost in the prevailing cycle.
“CEOs operating in Africa are very cognizant of their many challenges and perhaps they are reasonably bullish concerning the way forward for america,” said KPMG CEO in Southern Africa, Trevor Hoole. “Although they are really positive that their industry and companies will grow on the buy, their growth expectations are modest. In spite of this, they can be grappling which includes a plethora of issues simultaneously.”
Risks
What concerns local CEOs nearly all are risks connected to cyber security and increased regulation. Nevertheless ‘s no localised concern, because matches exactly with all the greatest concerns highlighted by CEOs globally.
What is especially concerning, however, is usually that despite 32% of South African CEOs identifying cyber security like a major risk, only 10% believe their organizations are fully prepared for a cyber event. Moreover, only 12% noted that ‘minimising cyber security risk’ is one kind of their top three strategic priorities on the next 36 months.
This is set in contrast into the regulatory environment, which 32% of CEOs labeled as a leading risk. Here, 24% of South African CEOs made giving an answer to regulatory change an example of their companies’ top three strategic priorities, making it the number one priority across all CEOs surveyed.
Investment markets
Another interesting finding within the survey is usually that South African CEOs are definitely more optimistic about the growth potential in Brazil than somewhere else on the planet. It is rapidly country finding yourself in an in-depth recession.
When asked wherein regions they view the greatest prospects for growth across the next 3 years, 42% of local CEOs identified Brazil being a good prospect, while 38% selected India. China ranked third, identified by 28% of CEOs.
Sub-Saharan Africa was identified for their potential by only 22% of CEOs, which ranked it beneath the U . s . and Western Europe. Twenty-six percent of South African CEOs saw possibility of rise in america and 24% in The european union.
Brexit
Perhaps surprisingly, South African CEOs believe Brexit are often more positive than negative regarding their companies. Forty-two percent noted it will use a ‘somewhat’ or ‘significantly positive’ impact on their companies’ revenue growth, in comparison with 30% who felt it would be ‘somewhat’ or ‘significantly negative’.
In addition, 38% declared that may well contain a ‘somewhat’ or ‘significantly positive’ have an effect on their business expansion plans across Europe. Only 26% suggested that it will be ‘somewhat’ or ‘significantly negative’ in this regard.
