The PwC Annual Global CEO survey report for West Africa has revealed that approximately 51% of chief executive officers (CEOs) across the region anticipate a decline in their local economies in 2024. The report indicates that this figure surpasses the global average of 37%.
While CEOs in West Africa express pessimism about their local economies, the report highlights their optimism regarding global economic growth. Sixty percent foresee growth in the global economy, compared to 38% of CEOs globally.
According to the report, “Findings from our West Market Area (WMA) report show that CEOs in West Africa are more optimistic about global economic growth prospects compared to their global counterparts — 60% of CEOs in West Africa expect global growth to improve in 2024 compared to a 38% global sentiment. 51% of CEOs in West Africa expect their local economy to decline compared to global CEOs (37%).”
Business Viability Concerns
Additionally, the report reveals CEOs’ concerns across the subregion regarding business viability, the impact of technology, and the regulatory environment.
Forty-five percent of CEOs fear that businesses will become obsolete without reinvention, while 42% identify the regulatory environment across the region as a major bottleneck in value creation.
Impact of Technology
Over half of CEOs (51%) anticipate that generative AI will reshape how their businesses create, capture, and deliver value in the next three years. However, they express concerns about inherent risks associated with the technology, including misinformation, cybersecurity, and reputational risks.
Sustainability and Climate Change Adaptation
Regarding sustainability and climate change adaptation, West African CEOs cite the absence of demand and regulatory complexity as the biggest inhibitors to decarbonization or reducing carbon footprints.
The report states, “However, West African CEOs face unique challenges when integrating decarbonisation in their business models. Lack of demand from stakeholders (23%) and regulatory complexity (18%) are the biggest factors inhibiting West African CEOs’ ability to decarbonise.”
Key Insights
CEOs’ cautious economic growth projections across West Africa contrast with the region’s status as one of the fastest-growing economies globally. However, insecurity, currency depreciation, global geopolitical risks, inflation, and high debt may dampen growth prospects.
Moreover, Nigeria’s economic conditions, as the largest economy in Africa, present challenges to the region’s growth outlook. The country is still adjusting to reforms initiated by the President Tinubu-led government.
Despite these challenges, the West African subregion remains resilient, with the potential for substantial growth, particularly given its prominence in the global economy.
