African chief executives have picked Kenya as one of the top five most attractive countries for investment on the continent.
The new Africa CEO Survey 2020 said that 37 per cent of business leaders polled identified Co?te d’Ivoire, Ghana, Kenya, Rwanda and Senegal as the top African countries that are best for investment.
Last year, the survey highlighted Kenya as a top destination for foreign companies seeking expansion into Africa.
This year’s survey, dubbed, Pathways Towards the Emergence of an African Business model, tackled private sector’s top agendas, including impact of Covid-19 on business leaders’ confidence, expectations regarding the Africa Free Trade Area Agreement (AfCFTA), the feminisation of organisations and the diversification of financing solutions, among others.
The survey is an initiative of the Africa CEO Forum and Deloitte. It polled more than 150 business leaders operating on the continent.
The study showed that 95 per cent of African companies’ revenues were negatively hit by the pandemic.
CEOs, however, expressed confidence in recovery despite the turmoil. “Above all, they are increasingly confident about the continent’s long-term economic growth, while also acknowledging that the slowdown in global economic growth will have a negative impact on their domestic operations,” said the authors of the report.
The continent’s business leaders were enthusiastic about the entry into force of the AfCFTA next year, saying a single market initiative would accelerate growth. “They share the belief that the unification process cannot be supported exclusively by public authorities,” noted the authors’ report.
The survey, however, noted that African companies had not well incorporated women into their organisations.
Over 74 per cent of companies women make up less than 25 per cent of board of directors’ members, showed the survey.
“The feminisation of organisations is a must and a key component of the African private sector’s development. Although it is clear there is a direct correlation between good corporate performance and gender diversity on boards of directors, African companies still have considerable room for improvement in this area,” said the authors of report.
Over 95 per cent of business leaders polled said the speeding up of digitisation owing to Covid-19 is now establishing itself as an essential component of companies’ recovery strategy.
Further, 85 per cent of the business leaders polled noted that Covid-19 would have a major impact on innovation in the coming years.
Over 93 per cent of African business leaders were committed to raising standards for their local populations with education, employment and health being the central focus areas for development of their local communities.