PwC research suggests in Africa 75% of CEOS believe tech advances will transform stakeholder expectations of business over next five years.
Africa’s CEOs rank technological advances, demographic shifts and a shift in global economic power as the top three defining trends that will transform their businesses over the five years.
According to the PwC Africa Business Agenda survey, the ability to leverage technology, innovation and talent to grow business is a common priority among business leaders in Africa.
With rapid urbanisation, businesses in Africa are poised for a digital revolution, the survey claims, and increasingly organisations are using technology to challenge business models and disrupt competitors.
PwC stated, “Technology was seen by CEOs in the survey as the best way of assessing and delivering on customer expectations by implementing customer relationship management systems (69%), interpreting the complex and evolving needs of customers through data and analytics (56%), and improving communication and engagement by means of social media (58%).”
In a review of global trends, in 2012 -2013, Africa had the highest mobile broadband growth rate globally – and the continent is predicted to be home to 12 megacities by 2025.
“Africa’s urban population will grow from 31.1% in 2015 to 50% by 2020,” the study affirmed, along with the research which suggested that the continent has the fastest growing middle class in the world – in 2010, 313 million people belonged to the middle class.
One of the outcomes of the survey, prospects remain positive on the continent – and there is a high-risk, high-reward proposition attached to engaging the market.
Research shows that among the restructuring activities that CEOs are planning in the coming year, in Africa 33% plan to outsource a business process or function, compared to the global statistic of 28%.
56% of CEOs in Africa plan to enter a new strategic alliance or joint venture, compared to 49% of their global counterparts.
“Don’t look at Africa in short cycles …don’t think you are going to make an investment in a year and see a return a year thereafter,” said Hein Boegman, CEO, PwC Africa.
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