Global CEO Optimism Falls to Lowest Level in Five Years as Uncertainty Deepens
story: written by Uzuh Rita November 7,2025
CEO confidence in the world economy has dropped to its weakest point in half a decade as business leaders brace for a turbulent 2025. The latest KPMG Global CEO Outlook report shows that only 68% of top executives are optimistic about the current direction of the global economy — the lowest figure recorded since 2020.
The study, which surveyed 1,350 CEOs across 11 leading markets, reveals growing caution among major international businesses. Many corporate leaders are channeling resources into artificial intelligence, workforce development, and cybersecurity as they prepare for a more unpredictable global landscape.
However, sentiment in Africa tells a very different story. The Africa-focused edition of the report, involving 130 CEOs from West, East, and Southern Africa, shows rising optimism, with 78% expressing strong confidence — a jump of more than 12 percentage points compared to last year. An overwhelming 98% expect business expansion within the next three years.
“This year’s findings show a bold and forward-thinking leadership mindset across Africa,” said Ignatius Sehoole, CEO of KPMG SA and KPMG One Africa. “African CEOs are not only responding to global challenges, they are building for the future through investment in talent, AI, and sustainable growth. The message is clear: resilience and innovation will power Africa’s economic rise.”
Across the continent, 71% of CEOs are investing in artificial intelligence and workforce skills to sustain growth. Generative AI is emerging as a key strategic priority heading into 2026. About 26% of African CEOs plan to dedicate more than 20% of their annual spending to AI — nearly twice the global average of 14%.
Still, technological advancement faces major infrastructure obstacles. The report cites unreliable electricity, limited broadband access, and outdated computing systems as major setbacks to scaling AI, while 96% of respondents say data readiness remains a challenge. This highlights the need for stronger digital and physical infrastructure.
“To implement AI at scale, African companies will need to decide whether to build their own systems, purchase existing solutions, or form strategic partnerships,” said Joelene Pierce, CEO Designate of KPMG SA. “The best option depends on each organisation’s capabilities, goals, and risk tolerance.”
Talent development is advancing alongside technology. Eighty-one percent of African CEOs believe improving employee AI skills will directly boost performance, while 88% plan to hire more workers. Meanwhile, 67% are redeploying staff into roles that leverage AI, reinforcing the belief that “AI enhances human talent rather than replacing it.” Africa’s youthful population also gives CEOs more room to develop future-ready skills — only 15% report generational skill gaps, compared to 30% among global peers.
But despite confidence, African CEOs remain alert to external shocks. About 22% say geopolitical uncertainty poses the greatest threat to growth — higher than concerns about new regulations or emerging technologies.
On sustainability, 79% of African CEOs are confident in navigating varying environmental standards across markets. Yet only 55% believe they have the capacity to meet new reporting requirements — far below the global average of 77%.
Regulatory hurdles are also slowing climate action. Twenty-one percent say the biggest difficulty in pursuing net-zero targets is decarbonising supply chains, while a shortage of skilled professionals is limiting the implementation of effective solutions.
