African CEOs are heading into 2026 with renewed ambition and a clear shift in strategic priorities, as artificial intelligence (AI) becomes central to corporate decision-making across the continent. According to KPMG’s 2025 Africa CEO Outlook, 86% of African CEOs plan to pursue mergers and acquisitions (M&A) within the next three years, up from 77% in 2024, a signal that leaders are betting on consolidation, scale, and technology-driven growth to navigate global uncertainty.
The survey, released on November 4, 2025, and based on responses from 130 chief executives across Southern, East, and West Africa, reveals a continent where business confidence is rebounding. Executives are not only more optimistic about economic prospects but are also reshaping corporate strategy around AI adoption, digital transformation, and cross-border expansion.
While just over half (53%) of African CEOs remain confident about global economic growth over the next three years, below the global average of 68%, their outlook has improved from 50% in 2024. Confidence in domestic economies is also on the rise, climbing to 63% from 61% last year, underscoring a cautious yet deliberate optimism as African firms embrace technology and mergers to future-proof their businesses.
More tellingly, 78% of African CEOs say they are confident about their own organisations’ growth prospects, nearly matching global sentiment at 79%. “African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies,” said Ignatius Sehoole, CEO of KPMG South Africa and KPMG One Africa.
In markets such as Nigeria, Kenya, and Egypt, merger and acquisition activity is increasingly driven by technology and e-commerce companies seeking regional scale and operational efficiency. Egypt’s MaxAB, for instance, has expanded its North African footprint through acquisitions, while Nigeria’s TradeDepot and Kenya’s Sendy have turned to restructuring and regional partnerships to sustain growth momentum.
This optimism is not blind. Executives continue to grapple with inflationary pressures, currency volatility, and shifting geopolitical dynamics. Yet, rather than retreat, Africa’s business leaders are using this period to position themselves for scale. The surge in M&A intent reflects that mindset.
Appetite for expansion through deals
The finding that 86% of African CEOs are planning mergers or acquisitions underscores a sharp pivot toward strategic consolidation. Across the continent, businesses are seeking to deepen market presence, acquire digital capabilities, and secure supply chain advantages. The trend mirrors a global uptick in deal-making sentiment, where 89% of CEOs worldwide report similar intentions.
The rise in M&A appetite follows a volatile few years in Africa’s deal landscape. Between 2023 and 2025, the continent experienced both record highs and sharp dips. In the first half of 2025 alone, 29 tech sector deals were recorded, a 45% increase from the same period in 2024, marking the most active half-year ever for African tech M&A.
However, outside the tech ecosystem, deal volumes declined by 21% year-on-year (excluding South Africa), and total deal value fell to US$4.66 billion, far below 2022 levels. Despite this, high-value transactions in mining, telecommunications, fintech, and energy drove optimism, suggesting that while deal count may have slowed, strategic acquisitions are becoming more targeted and transformative.
Technology and AI powering strategic realignment
Artificial intelligence (AI) has emerged as a defining priority shaping M&A strategy across Africa. 71% of African CEOs say they are investing in AI to enhance operational efficiency and competitiveness, while 26% plan to allocate over 20% of their annual budgets to AI, nearly double the global average.
This reflects a fundamental shift in thinking: African executives now see AI not merely as a future trend but as an immediate lever for growth. “To deploy and scale AI, African organisations must decide whether to build, buy, or partner,” said Joelene Pierce, CEO Designate of KPMG South Africa. “Each approach carries different risks and opportunities, and the right choice depends on existing capabilities and governance maturity.”
Infrastructure remains a limiting factor; unreliable power supply, poor broadband, and data readiness issues persist. But rather than slowing innovation, CEOs are investing strategically: 45% are prioritising cybersecurity and digital resilience, 40% are integrating AI across workflows, and 34% are backing scalable technology solutions to build digital capacity.
These investments also feed into M&A strategies, as many companies seek acquisitions that accelerate digital transformation and bridge infrastructure or skill gaps.
“71% of African CEOs say they are investing in AI to enhance operational efficiency and competitiveness, while 26% plan to allocate over 20% of their annual budgets to AI, nearly double the global average.”
Talent and leadership in the age of AI
The digital pivot is reshaping workforce strategy as well. 81% of African CEOs believe upskilling employees in AI will directly impact business success, while 67% are redeploying staff into AI-enabled roles.
This is particularly true in West Africa, where companies are redesigning roles and career paths to align with AI-driven collaboration. In East Africa, the focus is on hiring new AI and tech-capable talent, while Southern Africa is balancing reskilling and hiring strategies.
“Africa’s young workforce is its strategic advantage,” said Tola Adeyemi, CEO of KPMG West Africa. “With digital literacy and AI competence becoming core leadership capabilities, CEOs are evolving into communicators, innovators, and champions of change.”
ESG and the sustainability imperative
Environmental, social, and governance (ESG) priorities remain high on the agenda. Despite complex regulations, 79% of African CEOs express confidence in navigating ESG requirements, while 74% are using AI to reduce emissions and improve energy efficiency.
However, only 55% of African CEOs feel fully capable of meeting emerging ESG reporting standards, compared to 77% globally. Decarbonising supply chains and limited technical expertise remain barriers. Still, Africa’s corporate leaders are embedding sustainability deeper into business strategy — 46% have integrated ESG goals into core operations — marking a shift from compliance to value creation.
West Africa leads in ESG reporting and compliance (60%), followed by East Africa (48%) and Southern Africa (35%). “CEOs across Africa are recognising that sustainability is not peripheral; it’s central to competitiveness,” noted Benson Ndung’u, CEO of KPMG East Africa.
The KPMG 2025 Africa CEO Outlook captures a moment of convergence: CEOs balancing optimism with realism, growth with governance, and innovation with inclusion. Despite economic headwinds, African business leaders are doubling down on M&A, AI, and sustainability as pillars of future growth.
The survey shows that 84% of CEOs now feel a heightened responsibility for ensuring their organisations’ long-term prosperity, a higher proportion than the global average. Their investment priorities reflect this dual focus: cybersecurity and resilience (45%), AI integration (41%), and technology-led expansion (34%).
