NAIROBI, Kenya, May 11 – CEOs in Kenya are more confident than their peers in Africa or globally of revenue prospects over the next 12 months and three years, according to a survey by PricewaterhouseCoopers (PwC).
The PwC 14th Annual Survey says Chief Executives of Kenyan firms have also been more focused on strategy change over the last two years, with 97 percent of them reporting strategy change over the time period.
“Among investment decisions, the survey indicates that 48 percent of CEOs in Kenya are much more focused on increasing their share in existing markets,” said Kuria Muchiru, PwC Country Senior Partner in a statement.
Over 90 percent of CEOs in Kenya report that their current operating markets are in Africa, with 48 percent citing Western Europe.
87 percent of Kenya CEOs rank the local market as offering high or medium potential for growth.
“A smaller portion of Kenya CEOs—23 percent—ranks new geographic markets as an investment opportunity. All of these new geographic markets where CEOs anticipate growth are emerging markets, led by Africa and Asia,” he said.
“We are interested in why CEOs in Kenya are so focused on their existing markets. They clearly see investment opportunities and growth potential in Africa—particularly Kenya. What are the key success factors for growing a business in Africa—and in Kenya? Do they translate well in other emerging markets like Asia?” Posed Mr Muchiru.
The Chief Executives say that their revenues are primarily derived from consumers and businesses, with 81 percent reporting that they derive more than a third of revenues from consumers and 58 percent saying their revenues come from businesses. Among this customer base, CEOs say that they anticipate that more will come from emerging markets and that customers will focus increasingly on price and value going forward.
Has this strategic focus paid off? How and where are CEOs investing in growth? These are some of the questions that PwC is asking panelists and guests on May 19 at an exclusive forum for the CEOs. The discussion will also feature in The Africa Business Agenda, a publication that PwC will release at the end of June summarising results from 201 CEO interviews and multiple panel discussions across Africa.
“High confidence may be a force behind a strategic shift away from cost reductions and toward alliances and M&A. It seems as though restructuring activities are balancing out somewhat—with a more equal focus on a variety of activities. We want to know more about this, and I look forward to exploring these and other issues with our panelists and guests next week,” he said.