African Business Leaders Concerned About Changing Regulations

February 9, 2025

28th annual PwC CEOs survey is the potential changes in the regulatory environment, a figure significantly higher than the global average of 42%.

(3 Minutes Read)

Key trade-related policies, such as the expiring Africa Growth and Opportunity Act (AGOA) and the potential implementation of AfCFTA policies, raise more concern. This heightened anxiety underscores the unique regulatory pressures faced by businesses in Sub-Saharan Africa, where evolving policies can significantly impact operational stability and strategic planning.

African business leaders are more worried about changing regulations than their counterparts elsewhere across the world. A significant concern for 57% of industry captains polled in the 28th annual PwC CEOs survey is the potential changes in the regulatory environment, a figure significantly higher than the global average of 42%.

The rising costs of products and services, cited by 33% of CEOs, strain business operations and market competitiveness, causing further concern for business viability. Additionally, regulatory shifts, cost pressures and competitive forces create a complex operating environment that amplifies business risk. Strong competition presents another critical challenge, with 31% of CEOs highlighting its impact on market entry and growth prospects. To address these challenges, region-specific solutions are required.

Overall, business leaders in Sub-Saharan Africa are somewhat more confident about revenue growth compared to the global average. This reflects more of the opportunities and prospects in the short term arising from expected macroeconomic stability, improving consumer spending, increased investment and declining inflation rates.