African family businesses outperform global peers – PwC report

Family businesses across Africa recorded stronger growth than their global counterparts despite economic uncertainty, according to the recently released PwC’s 2025 Africa Family Business Survey.

The survey, which drew responses from 79 family businesses across East, West and Southern Africa, found that 66 per cent of respondents achieved single-digit or double-digit sales growth over the past year, surpassing the global average of 57 per cent.

PwC said the performance reflected the resilience of family-owned businesses amid economic volatility, regulatory reforms, geopolitical tensions and changing stakeholder expectations.

The Africa Family Business Leader at PwC Nigeria, Esiri Agbeyi, said African family businesses had established a solid platform for future expansion.

“Family businesses in Africa have built a strong foundation for growth. Disciplined strategies and a clear focus on technology and AI show that the fundamentals are in place. The next step is to build on these strengths by scaling purpose, improving decision-making, and activating reputation and long-term capital as drivers of growth,” Agbeyi stated.

According to the report, 53 per cent of respondents expect to pursue steady growth over the next two years, while 27 per cent plan faster expansion, reflecting a cautious approach that balances opportunities with long-term sustainability.

The survey noted that economic priorities differed across regions. While West African businesses focused on fiscal stability, regional integration and infrastructure development, Southern African firms grappled with energy constraints and efforts to diversify power sources. In East Africa, businesses continued to drive digital transformation, trade expansion and innovation-led growth.

PwC identified five factors driving the success of high-performing family businesses: purpose, agility, long-term capital deployment, reputation management and strategic tax planning.

Although 87 per cent of respondents said they had a clearly defined purpose, fewer than half communicated it externally, highlighting what the firm described as a missed opportunity to strengthen trust and competitive positioning.

The report also found that 52 per cent of businesses described themselves as agile or very agile, exceeding the global average. It added that agility was helping firms innovate, adapt operations and respond more effectively to market changes.

Family businesses also demonstrated a preference for long-term investment strategies, with 82 per cent prioritising the reinvestment of profits instead of rapid expansion.

Reputation emerged as another critical factor, with 91 per cent of respondents identifying it as essential to long-term success. However, nearly one-third said their reputation felt vulnerable in the current operating environment.

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The Family Business Leader for South Market at PwC South Africa, Herman Eksteen, said family-owned firms in South Africa typically prioritised legacy and trust over short-term visibility.

“South African family businesses tend to adopt a conservative, values-led approach to managing public reputation, placing a strong emphasis on long-term legacy, trust, and social responsibility over short-term visibility or risk-taking. Their engagement with the public is deliberate and relationship-driven, closely aligned with preserving the integrity of the family name,” Eksteen said.

The survey further showed that tax management had become a major strategic issue, with 58 per cent of respondents reporting tax-related challenges, a figure higher than the global average.

The Family Business Leader for East Market at PwC Kenya, Sunny Vikram, said technology and artificial intelligence were increasingly shaping business strategies.

“With the rapid advancement of AI and digital technologies, many family businesses, particularly in East Africa, are rethinking their growth strategies, leveraging innovation to enhance service delivery, improve operational efficiency and build more resilient, competitive business models for the long term,” Vikram said.

PwC said more than half of respondents were prioritising technological advancement and artificial intelligence to improve efficiency, strengthen competitiveness and unlock new growth opportunities.

The report also revealed that more than 90 per cent of respondents expect sustainability to play a significant role in financial performance and resilience over the next five years.

Despite the positive outlook, businesses continue to face headwinds. Two-thirds of respondents said inflation and supply chain disruptions significantly affected their operations over the past year, while geopolitical risks, changing consumer expectations and climate-related pressures also influenced strategic decisions.

The Family Business Leader for West Market at PwC Ghana, Edward Gomado, said the sector’s performance underscored the value of resilience and long-term planning.

“Rising tax complexity and external uncertainty are reshaping the business landscape, but the continued growth of many family businesses in Africa shows that resilience, discipline and long-term thinking remain powerful advantages,” Gomado noted.

Also commenting, the Africa Private Business Leader at PwC South Africa, Duncan Adriaans, stressed the need for businesses to combine long-term vision with adaptability.

“Family businesses have always been defined by their long-term view. Today, that must be matched with agility. A clear purpose sets the direction, but the ability to adapt quickly will determine who continues to create value in an increasingly complex environment,” Adriaans said.