African CEOs prioritise AI investment despite readiness gap

African industry leaders are increasingly more prioritising synthetic intelligence (AI) funding, however simplest 14 in keeping with cent consider their organisations are protecting tempo with or shifting forward of AI trends.

In the meantime, 66 in keeping with cent of world industry leaders are shifting forward of AI trends, in step with a brand new KPMG survey.

The survey additionally discovered that 72 in keeping with cent of African leader government officials (CEOs) determine AI as a best funding precedence.

This highlights an opening between companies’ ambitions to undertake the generation and their readiness to deploy it.

The findings are contained within the 2026 KPMG Africa CEO Outlook, introduced in Ikoyi, Lagos, on Thursday.

The record examines industry leaders’ enlargement expectancies, funding priorities, financial dangers, group of workers methods and sustainability readiness around the continent.

KPMG Africa CEO Outlook

In line with the record, the distance between AI funding priorities and organisational readiness underscores the problem going through African companies as they search to translate technological ambition into measurable industry effects.

Whilst 48 in keeping with cent of African CEOs be expecting returns on their AI investments inside one to a few years, when compared with 71 in keeping with cent globally, 42 in keeping with cent be expecting returns to take greater than 3 years, towards 12 in keeping with cent of world CEOs.

The record means that the longer funding horizon might mirror the paintings required to fortify knowledge infrastructure, combine AI into present programs, identify suitable governance and increase the abilities had to realise its advantages.

Talking on the release, Tola Adeyemi, senior spouse and leader government officer of KPMG One Africa, stated the survey was once meant to problem industry leaders’ present assumptions, encourage new concepts and validate selections they had been already making.

The company surveyed 176 CEOs throughout Africa, from north to south and east to west, as a part of an international survey of one,400 CEOs throughout industries.

“One transparent message from the survey, when it got here to financial outlook, is that African CEOs are constructive in regards to the enlargement possibilities in their organisations, in spite of our surroundings wherein they function,” Mr Adeyemi stated.

He, on the other hand, wired that ambition by myself would no longer ship the predicted effects, pronouncing companies wanted disciplined execution and resilience to translate their enlargement goals into tangible results.

Mr Adeyemi additionally challenged the in style worry that AI adoption would essentially result in process losses, pronouncing African CEOs anticipated their workforces to make bigger as companies built-in the generation.

“Moderately, it’s one in every of rescaling the group of workers and in search of several types of skill that may paintings along generation to optimise effects,” he stated, describing group of workers transformation as a central a part of the AI dialog.

The survey discovered that 84 in keeping with cent of African CEOs be expecting their organisations’ headcounts to extend over the following 3 years, when compared with 89 in keeping with cent globally.

It additionally discovered that 86 in keeping with cent intend to retain and retrain high-potential staff, whilst 82 in keeping with cent are redesigning roles, profession paths and workforce buildings to make stronger human-AI collaboration.

In spite of those plans, talents shortages stay an important constraint. Some 59 in keeping with cent of African CEOs recognized group of workers talents gaps as a problem, 58 in keeping with cent cited AI upskilling and coaching, and 52 in keeping with cent pointed to difficulties attracting and conserving skill.

The findings recommend that companies’ skill to have the benefit of AI will rely no longer simplest on funding in generation but additionally on their capability to increase the group of workers and organisational programs required to make use of it successfully.

Information safety

The record recognized cybersecurity and knowledge safety, along supply-chain resilience, because the main threats to enlargement, each and every cited by means of 31 in keeping with cent of African CEOs. The combination of AI into working fashions and workflows adopted at 27 in keeping with cent.

In reaction, 45 in keeping with cent of African CEOs stated they had been expanding funding in cybersecurity and digital-risk resilience, whilst 36 in keeping with cent had been making an investment extra in regulatory compliance and reporting and 31 in keeping with cent in AI integration.

Mr Adeyemi stated the findings pointed to the significance of resilience as companies ready for the approaching 12 months.

“I’d be expecting that as we move from 2026 into 2027, we’d see that endured center of attention on resilience as an enabler of enlargement,” he stated.

Income enlargement and sustained profitability

In spite of the uncertainties, African CEOs stay widely constructive in regards to the financial outlook.

The survey discovered that 66 in keeping with cent of CEOs had been assured within the world economic system, widely consistent with the worldwide benchmark of 65 in keeping with cent.

Self belief in home economies stood at 72 in keeping with cent, whilst 79 in keeping with cent expressed self belief in their very own organisations’ enlargement possibilities.

The optimism follows a 12 months of moderately sturdy industry efficiency, with 86 in keeping with cent of African CEOs reporting earnings enlargement of their newest monetary 12 months.

Alternatively, simplest 58 in keeping with cent be expecting annual profits enlargement of a minimum of 2.5 in keeping with cent over the following 3 years, when compared with 68 in keeping with cent globally.

It recommended that changing earnings enlargement into sustained profitability stays a problem for companies working amid financial uncertainty and emerging operational pressures.

“Africa’s enlargement alternative depends upon how successfully companies paintings throughout markets, increase skill and construct the features had to compete in a converting world economic system.

“The concern is to transport from recognising the chance to executing towards it, with funding selections that fortify resilience lately whilst development capability for long-term enlargement,” Mr Adeyemi added, growing an image on how African CEOs may flip their self belief into execution.

The record famous that Africa’s power sources, important minerals, increasing client markets and alternatives to increase native production and worth chains may draw in funding as world delivery chains shift.

Realising those alternatives, on the other hand, would rely on dependable power, infrastructure, talents, connectivity and predictable regulatory environments, the record famous.

Sustainability reporting

The survey additionally discovered growth in sustainability reporting readiness, with 65 in keeping with cent of African CEOs pronouncing their organisations had the capability to fulfill new reporting necessities, up from 55 in keeping with cent within the earlier 12 months.

Alternatively, simplest 48 in keeping with cent stated they had been embedding sustainability extra deeply into their core industry methods, when compared with 63 in keeping with cent globally.

KPMG stated the wider problem was once to include sustainability into industry selections in ways in which enhance operational resilience, potency and long-term price advent.

Financial uncertainty

Past generation, the survey recognized financial uncertainty and geopolitical disruption as vital concerns for African companies.

The record attributed this disruption to converting power costs, supply-chain pressures and industry relationships that impact working prices and funding selections.

Additionally, talking to PREMIUM TIMES after the release, Frank Blackmore, lead economist at KPMG South Africa, stated expectancies for world financial enlargement had progressed in the beginning of 2026, supported by means of easing inflation and interest-rate cuts in different economies.

Alternatively, geopolitical tensions involving america, Israel and Iran disrupted power markets and presented contemporary uncertainty, he stated.

Mr Blackmore defined that upper world power costs, in particular diesel, had been expanding the price of dwelling and doing industry, including to the demanding situations confronting African firms.

“So I believe maximum economies concept it will be transitory, quick time period, come to an finish and transfer on. However we will be able to see now that that roughly Center Japanese energy steadiness is such that that is going to be on a longer term foundation.

“We’re going to peer power costs being unstable and unsure. That has supposed that the majority economies have noticed an uptick in price of dwelling and prices of doing industry simply at the again of those upper,” Mr Blackmore stated.