The audit firm’s 17th Global CEO Survey states that 84 per cent of CEOs are confident of their company’s prospects for revenue growth while 40 per cent are “very confident.”

The study released last week compiles results from 260 CEOs in Africa and includes insights from business and public sector leaders from 18 countries.

“CEOs in Africa feel more positive about their ability to generate revenue growth and about prospects for the economy now that they are emerging from the global financial recession,” Mr Suresh Kana, senior partner for PwC Africa said.

The industry captains acknowledge that a lot more needs to be done to transform Africa’s potential.

“CEOs are looking on multiple fronts for growth opportunities – for many, the search for growth will not be an easy task,” Mr Kana said.

SCOUTING FOR PARTNERS

Majority of the CEOs are actively scouting for partners to steer revenue growth.

Almost half of them plan to initiate a new strategic alliance or joint venture in the next 12 months, and nearly a third are anticipating an acquisition, mainly in their home country or elsewhere in Africa.

China, US and South Africa are emerging as key countries for consideration in these prospects for partnerships and acquisitions.

The survey states that this is an indication of overall better economic prospects, higher availability of finance, and the growing presence of potential local and global partners attracted by Africa’s potential.

The CEOs estimate that innovation could push growth in their businesses by 31 per cent, increased share in existing markets would propel them by 27 per cent, and new markets would grow them by 20 per cent.

They have also put consumer spending and behaviour on their radar.

The report shows that these prospects have increased confidence in the CEOs who say that they are prepared to manage risks, despite some volatility and uncertainty.

Majority of the CEOs believe that urbanisation will transform their businesses over the next five years than shifts in demographics and in global economic power.

“Every day breakthroughs research and development are opening up new opportunities. As technologies progress, they will generate more improvements in efficiency and productivity. In turn, these advances are expected to trigger a strong acceleration in economic growth towards the end of the coming decade,” said Mr Kana.

However, they cite poor infrastructure, poverty, lack of skilled workforce and jobs to match them as key challenges.

Forty five per cent of African CEOs state that their governments are ineffective in improving basic infrastructure, such as electricity.

Sixty four per cent say skilled workforce is still insufficient while another 62 per cent say poverty and inequality is a big problem.

DEBT BURDENS

Whereas 79 per cent of the CEOs said their governments have responded to volatility, 78 per cent said there was a positive response to fiscal deficit and debt burdens.

“In our view, one of the big challenges is for government to find new ways to form strategic collaborations and partnerships with people from other sectors, such as business. Tomorrow’s public body will need to act differently – governments of the future will need to embrace a lot of private-public partnerships,” Mr Kana noted.