CEOs confidence in global economy sinks to 5-year low
Global CEOs are navigating 2025 with declining confidence in the world economy, as geopolitical tensions and economic uncertainty weigh heavily on corporate sentiment.
According to the KPMG 2025 Global CEO Outlook, only 68% of global CEOs are confident in the current trajectory of the world economy, marking the lowest reading in five years.
The findings, based on a survey of 1,350 CEOs across 11 major markets, point to growing caution at the top of global business. Many are directing strategic investment into artificial intelligence, talent development and cybersecurity, as they adjust to a more volatile operating environment.
The tone in Africa stands in stark contrast. According to the Africa edition of the report, which surveyed 130 CEOs across Southern, East and West Africa, 78% expressed strong business confidence (a more than 12 percentage point rise from last year) and 98% expect business expansion over the next three years.
“This year’s results reflect a confident and pragmatic leadership mindset across the continent,” said Ignatius Sehoole, CEO of KPMG SA and KPMG One Africa.
“African CEOs are not only adapting to global challenges but are actively investing in the future through AI, talent, and sustainable growth strategies. The outlook is clear: resilience and innovation will define Africa’s growth story.”
Seventy one percent of African CEOs are investing in AI and talent to drive growth and resilience. Generative AI has become a top strategic priority heading into 2026, with 26% of African CEOs planning to allocate more than 20% of their annual budget to AI — nearly double the global average of 14%.
However, infrastructure gaps remain a major hurdle. African firms face “unreliable power supply, limited broadband connectivity, and outdated computing systems that restrict the use of data-intensive AI solutions.” Additionally, 96% cite data readiness as a challenge, underscoring the need for stronger local infrastructure investment.
“To deploy and scale AI, African organisations are faced with three options: build, buy or partner. Each organisation must weigh the pros and cons… The right strategy depends on the organisation’s existing capabilities, risk appetite and strategic objectives,” said Joelene Pierce, CEO Designate of KPMG SA
Talent transformation is proceeding in parallel: 81% of African CEOs believe that upskilling in AI will directly impact business success, and 88% expect to increase headcount. Sixty seven percent are redeploying staff into AI-enabled roles, reinforcing the view that “AI complements rather than replaces human capability.”
As Africa has a relatively younger workforce, it provides a buffer, giving more time to plan and build future-ready talent pipelines, where only 15% of Africa CEOs report generational gaps in critical future skills such as AI adoption (30% globally).
Still, African CEOs remain watchful of global shocks, with 22% citing geopolitical uncertainty as the biggest threat to growth — ahead of risks posed by emerging technologies or regulation.
On the ESG front, 79% of African CEOs are confident in navigating regulatory differences across markets. Yet, only 55% say they have the capability to meet new reporting standards — well below the 77% of global peers.
Regulatory complexity remains a major hurdle for African CEOs pursuing climate goals, with 21% citing the difficulty of decarbonising supply chains as the biggest barrier to achieving net-zero targets. A shortage of relevant skills and expertise is also undermining confidence in their ability to implement effective solutions.
