Chief Executives of businesses in Africa are optimistic about their companies’ performances, thanks to a growing economy and governments that are attentive to the private sector, a new Price Waterhouse Coopers’ survey has disclosed.
According to the survey of chief executives in 10 African countries, more than 60 percent expect their business to grow in the next 12 months and 93 percent believe the continent’s economy will expand in the next three years.
Rwanda emerged among the top four countries in the “Africa Business Agenda” survey released, yesterday, in Nairobi by PriceWaterhouseCoopers.
More than 200 business leaders from a broad cross-section of local and expatriate businesses were interviewed.
Speaking after the release of the 40-page report, Philip Kinisu, the Territory Senior Partner & CEO PwC Africa Central, said that in the top performing countries, the private sector works closely with the government.
“In Rwanda, Kenya, South Africa and Nigeria, you see the private sector actively participating with governments on strategic planning,” Kinisu said.
The PwC official said that in the four countries in particular, business leaders “do have a voice that is heard.”
“They see tremendous potential in the markets where they currently are. This report is a vote of confidence by investors in government attitudes toward the private sector,”
“They appreciate economic reforms and see the positive impact they have on the market.” Kinisu said.
One of the CEO interviewed, Sven Piederiet, who is the Managing Director of Bralirwa gave the lessons from Rwanda as well as future prospects when asked where the confidence comes from.
“It is a ‘magic equation’ of demographics, superior economic growth and political stability which have contributed to optimism,” Piederiet says in the report
Other contributing factors include a wide variety of investment and development partners and effective government policies supporting growth, which all contribute to the overall, higher CEO confidence in Africa due to markets that are growing faster.
Bernice Kimacia, Country Senior Partner, PwC Rwanda, in the survey report said that despite Rwanda being a relatively smaller economy compared to others in the region, there is a strong will to support investment.
“Rwanda’s economy is relatively smaller than others in the region but it’s on a very different path—a strong path supported by a strong commitment by government,”
“As the economy grows, the climate is right for investment and the prospects of high returns are good,” Kimacia said.
The Africa Business Agenda is based on interviews with CEOs in Angola, Ghana, Kenya, Mauritius, Nigeria, Rwanda, South Africa, Tanzania, Uganda and Zambia.
The survey was conducted from September—November 2010. The number of CEOs surveyed in each market was based on each market’s relative size in Africa. Most of these were face to face interviews.
To better appreciate what is underpinning their outlook for growth, the study also conducted in-depth interviews in May 2011 with eight CEOs, many of whom have regional roles.
Their insights cover a wide range of topics, from prospects for growth to evolving industry and market dynamics as well as risks and priorities over the short and medium term.