The vast majority of South African CEOs questioned in a recent survey anticipate their business in the rest of the continent to expand over the next year.
A CEO survey published by PwC found that 94% of South African company heads expect their business in Africa to grow in the next 12 months.
Other interesting insights that emerged from the survey include:
- 53% of CEOs said they are worried about energy costs in South Africa, down from 70% in the previous year. In February 2010 the country’s National Energy Regulator announced tariff increases of 24.8%, 25.8% and 25.4% over the next three years. According to PwC, many electricity users might have already grown accustomed to higher electricity prices.
- 31% are concerned about their companies’ ability to finance growth. “This figure echoes the views of CEOs globally and is similar to the level recorded in our last report – despite the fact that we now have the lowest interest rates in 37 years and there has been a modest reduction in lending criteria by local banks over the past 12 months,” says PwC.
- Regarding changes in consumer spending and behaviour, 28% of CEOs are somewhat concerned about changing consumer patterns, compared to just less than 50% in both emerging and developed markets.
- CEOs also seem to be aware of the growing prominence of mobile phones and social media platforms among consumers. Of respondents for whom consumers represent more than 33% of revenues, 94% said they are adjusting their strategies to accommodate consumers’ increasing use of mobile devices and social media to voice their needs and preferences to companies.