KPMG is urging African CEOs to take a more proactive approach to addressing geopolitical challenges. It advises them to shift from reacting to events as they happen to anticipating potential risks and opportunities.
With global uncertainties escalating, KPMG emphasizes that business leaders need to integrate forward-thinking strategies to mitigate disruptions and capitalize on emerging trends. This would enable African CEOs to position their companies for long-term success and resilience.
The issue of geopolitics is one of the key issues contained in the 2024 African CEO Outlook report by the international professional accounting and auditing firm. A forum was held on Wednesday October 23 in Accra to present content of the report with a panel discussion, for the Ghanaian business executive community.
According to KPMG’s latest findings, CEOs worldwide have witnessed considerable change over the past decade, with geopolitical risks continuing to shape the global business environment. While geopolitics and political uncertainty may not rank as the top threat to growth, they remain a significant concern due to their interconnection with other critical issues, such as economic decoupling, supply chain disruptions, and cybersecurity challenges.
Geopolitical competition has increasingly inflationary effects and is a key factor in the disruption of supply chains, trade, and investment. This shift has led to a new focus on resilience over efficiency in business operations, which is reshaping global trade and investment patterns. National security priorities and more frequent policy interventions are becoming the dominant forces driving economic integration.
These developments add to the complexity that CEOs must navigate, especially in regions like Africa, where geopolitical changes can have far-reaching consequences for trade, investment, and economic growth.
KPMG notes that this complexity will demand more time, money, and resources from businesses as they attempt to navigate the uncharted waters of technological innovation, data protection, and cyber risks. For African CEOs, this is an added layer of complexity, as they are tasked with balancing these global concerns with local market challenges.
Amid the growing uncertainty, there is a sense of resilience and optimism within the C-suite. According to KPMG, this resilience offers hope for the future, and it presents an opportunity for political leaders to re-engage with the business community to foster collaboration and strengthen international trade. By working together, businesses and governments can chart a path forward that supports global growth and stability.
KPMG’s analysis points out that, for many years, businesses have taken a reactive stance toward geopolitical changes, responding only after the fact, when crises have already unfolded. However, in today’s environment of growing geopolitical turbulence and shifting alliances, that approach is no longer viable.
African CEOs, like their global counterparts, must shift from a reactive to a proactive stance, anticipating geopolitical events and preparing accordingly.
