West African CEOs gloomy over local economic prospect in 2024, says PwC

• 51% foresees decline

Onome Amuge

A gloomy prospect for the local economies of West Africa is what majority of the chief executives in the sub-region are foreseeing in 2024, according to a new report.

According to the PwC Annual Global CEO survey report for West Africa approximately 51 percent of chief executive officers (CEOs) in the region anticipate a decline in their local economies in 2024, compared to 37 percent globally, as reflected in the report.

The result highlights a growing concern among West African CEOs about the economic outlook in their respective countries. Despite a positive global economic outlook, West African CEOs express a more pessimistic view of the region’s economy, indicating potential challenges specific to the region. 

However, while they anticipate a decline in their local economies, CEOs in West Africa hold a more positive outlook regarding global economic growth, as highlighted in the PwC Annual Global CEO survey report.

According to the report, 60 percent of West African CEOs project growth in the global economy, compared to 38 percent expressing a similar sentiment globally, an indication that West African CEOs are more optimistic about worldwide economic prospects than their international counterparts. 

The intriguing discrepancy also suggests that while there are concerns surrounding local economic conditions, West African CEOs are simultaneously observing signs of progress and potential opportunities on a global scale.

The PwC Annual Global CEO survey report further highlighted several concerns faced by chief executives across West Africa regarding business viability, technological impact, and regulatory environment.

According to the report, 45 percent of CEOs in the region fear that their businesses will not survive without significant transformation and adaptation.

This sentiment has grown from the previous year, where only 39 percent of CEOs expressed similar concerns, reflecting a rising apprehension about the future of their organisations amidst an evolving business landscape.

Furthermore, the report revealed that 42 percent of CEOs view the regulatory environment in the region as a major hindrance to creating value within their businesses. This suggests that many business leaders feel constrained by existing regulations, which may impede innovation, growth, and overall business success.

As outlined in the PwC Annual Global CEO survey report, 51 percent of CEOs in West Africa anticipate that generative AI will significantly alter how their businesses create, capture, and deliver value within the next three years. 

But despite the potential benefits of this technology, they also acknowledge the associated risks, including misinformation, cybersecurity vulnerabilities, and reputational concerns.

When it comes to sustainability and adapting to climate change, West African CEOs identify a lack of demand and complex regulations as the primary obstacles in their efforts to decarbonise and decrease their carbon footprints.

The report suggests that in order to mitigate the risks associated with generative AI, businesses should implement robust cybersecurity measures and develop strategies to combat misinformation. Additionally, it stated that fostering a culture of innovation and adaptability can help companies stay ahead of the curve in an ever-evolving technological landscape.