According to the PwC Annual Global CEO survey report for West Africa, around 51% of chief executive officers (CEOs) in the region predict their local economy to shrink in 2024, compared to 37% for the global average.
The survey indicates that although West African CEOs anticipate a downturn in their home economies, they have optimistic expectations for global economic expansion. 38% of them expressed a global sentiment, while 60% of them predicted growth in the global economy.
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%).”
The report also exposes chief executives’ concerns about regulatory environments, technology’s impact on their businesses, and commercial viability within the subregion.
According to the survey, 42% of CEOs believe that the regulatory environment in the region is the main obstacle in their efforts to build new firms, and 45% of CEOs fear that companies will cease to exist without reinvention.
Technological impact
In addition, slightly more than half of CEOs (51%) believe that in the next three years, generative AI will alter how their companies generate, capture, and deliver value. Nonetheless, they are afraid of the inherent risks associated with technology, including those related to cybersecurity, disinformation, and reputation.
CEOs from West Africa claim that the two largest obstacles to decarbonization—or lowering carbon footprints—are a lack of demand and complicated regulations. These issues are related to sustainability and climate change adaptation.
It reads, “However, West African CEOs confront distinct obstacles when it comes to incorporating decarbonization into their company strategies. The most significant barriers to West African CEOs’ ability to decarbonize are a lack of stakeholder demand (23%), as well as regulatory complexity (18%).”
Things To Note
The West African subregion’s CEOs have projected dismal economic growth, which is unexpected given that the region’s nations have some of the fastest-growing economies in the world as well as on the continent.
In its projection for 2024, the African Development Bank (AfDB) states that 11 of the world’s 20 fastest-growing economies are located in Africa, with five of those being in West Africa alone. In addition, it is anticipated that the West African subregion will grow at the second-fastest rate on the continent, at 4.0%, after East Africa at 5.1%.
Though the future looks promising, the area is facing some crippling economic shocks that might negatively impact its prospects for the coming year and beyond. The reasons for the pessimistic views from CEOs could include inflation, depreciating currencies, effects of global geopolitical threats, insecurity, and high debt levels.
The possibilities for growth in the entire region are also threatened by the state of the largest economy on the continent. The twin reforms implemented by the Tinubu-led government are still causing some adjustments in the Nigerian economy.
