PwC says 51% of CEOs in W/Africa expect local economies to decline in 2024

The PwC Annual Global CEO survey report for West Africa has revealed that about 51% of chief executive officers (CEOs) across the region expect their local economies to decline in 2024 compared to 37% for the global average as contained in the report.

While West African CEOs expect decline in their local economies, the report reveals their positive expectation for global economic growth. 60% of them projected growth in the global economy compared to 38% of the global sentiment.

The report states, “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%).”

Business viability

Also, the report reveals the fears of chief executives across the subregion with respect to business viability, the impact of technology on their business and the regulatory environment.

According to the report, 45% of CEOs fear that businesses will cease to exist without reinvention while 42% say the regulatory environment across the region is the major bottleneck in their quest to create value.

Impact of technology

Furthermore, just over half of CEOs (51%) state generative AI will change how their businesses create, capture and deliver value in the next three years. Although, they fear inherent risk with the technology such as misinformation, cybersecurity, reputational risks and so on.

In the aspect of sustainability and adapting to climate change, West African CEOs say absence of demand and regulatory complexity is the biggest inhibitors towards efforts to decarbonise or reduce their carbon footprints.

It states, “However, West African CEOs face unique challenges when it comes to integrating decarbonisation in their business models. Lack of demand from stakeholders (23%) and regulatory complexity (18%) are the biggest factors inhibiting West African CEOs’ ability to decarbonise.”

What you should know

The gloomy economic growth projection from CEOs across the West African subregion comes as a surprise since countries across the region are among the fastest growing economies not just in the continent, but globally.

• According to the African Development Bank (AfDB), in its outlook for 2024, 11 of the 20 fastest-growing economies in the world 2024 are in Africa with five from West Africa alone. Furthermore, the West African subregion is projected to be the second fastest growing subregion in the continent growing at 4.0% trailing East Africa with 5.1%.
• Despite the exciting outlook, the region faces some debilitating economic shocks that could blight its outlook for the year and beyond. Insecurity, currency depreciation, effects of global geopolitical risks, inflation, and elevated debt levels may be the reason for the gloomy expectations from CEOs.
• Also, the economic condition of the biggest economy in the continent also poses a threat to the growth prospects of the entire region. Nigeria’s economy is still adjusting to the twin reforms instituted by the President Tinubu-led government.

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