African companies are accelerating merger and acquisition activity as CEOs race to build the scale and digital capacity needed for an AI-driven future.
New findings from the KPMG 2025 Africa CEO Outlook show a sharp shift away from the caution that defined previous years, with executives now pursuing partnerships and expansion to position their firms for a rapidly changing technological landscape.
The report indicates that 86 per cent of African CEOs are making or likely to make acquisitions within the next three years — a significant rise from 77 per cent in 2024.
This appetite is now approaching global levels, where 89 per cent of CEOs expect to pursue deals. The study notes that this signals a stronger drive for partnerships and expansion as businesses seek greater scale and capability.
This marks a departure from the risk-averse approach many African firms adopted in recent years, when economic pressures and political uncertainty led to more conservative growth strategies.
Today’s CEOs are looking outward, using mergers and acquisitions to secure the technology, talent, and digital foundations required to compete in an AI-centred global economy.
The report notes that African CEOs are acting from a position of growing confidence. Despite global volatility, 78 per cent expressed confidence in their companies’ growth prospects, almost matching global sentiment.
Many have already begun reshaping their strategies, with 69 per cent having adjusted their growth plans to respond to interconnected challenges across markets.
According to the report, the need to build digital capacity is the main driver behind this shift.
AI has become a top operational priority, and African firms are seeking external capabilities to accelerate adoption.
The report observes that integrating AI into operations is now one of the continent’s most pressing business concerns.
CEOs are also under pressure to strengthen cybersecurity and navigate regulatory demands tied to new technologies.
Ignatius Sehoole, CEO of KPMG South Africa and KPMG One Africa, said the region’s leaders are responding proactively to technological change.
He explained that as AI becomes more deeply embedded in daily business operations, CEOs are prioritising talent development, recognising that skills are being fundamentally redefined.
With AI adoption rising across sectors, African firms are seeking partners that can bring digital infrastructure, advanced analytics, or AI-ready data capabilities. The push reflects a broader strategic shift, with companies preparing for long-term transformation rather than short-term survival.
The report adds that although African CEOs remain aware of risks — including inflation, regulatory pressure, and cyber threats — they are increasingly choosing expansion over contraction.
KPMG concludes that deal-making will remain central as businesses seek the scale and capability to compete in a digital-first economy.
