KPMG East Africa’s 2024 CEO Outlook report reveals a decline in confidence among East African CEOs regarding economic growth.

Only 60 percent of CEOs expressed optimism for their organizations’ growth in 2024, down from 80 percent in 2023.

Key concerns include trade barriers, regulatory demands, and threats from cybercrime and public health crises.

While 76 percent of CEOs remain confident in their industry’s growth, only 60 percent are optimistic about their countries’ economies, and 48 percent about the global economic landscape.

Despite these challenges, there is strong momentum toward adopting artificial intelligence (AI) technologies, with CEOs viewing AI as a driver of innovation and productivity.

“East Africa’s CEOs are heavily investing in AI implementation,” the report noted, adding that they expect AI to boost efficiency through task automation and diversify skills.

Though 90 percent are focused on workforce upskilling to adapt to AI, only 44 percent feel ready to effectively do so.

Environmentally, just 22 percent of CEOs are confident about reaching net-zero emissions by 2030, citing high costs and lack of expertise.

However, 76 percent continue pursuing climate strategies for a competitive edge.

Amid shifting labor dynamics, CEOs foresee challenges with an aging workforce and skill shortages. Most CEOs – 88 percent – favor a return-to-office model for corporate roles.