By Daily Review Online
Family-owned businesses across Africa are demonstrating remarkable resilience and growth despite economic uncertainty, inflationary pressures and global disruptions, according to the PwC Africa Family Business Survey 2025.
The survey, released on Monday, found that 66 per cent of family businesses across East, West and Southern Africa recorded sales growth over the past year, surpassing the global average of 57 per cent.
Based on responses from 79 family businesses across the continent, the report highlighted the ability of African family enterprises to adapt to changing economic conditions while maintaining a long-term growth outlook.
According to the survey, more than half of the respondents, representing 53 per cent, plan to pursue steady growth over the next two years, while 27 per cent are targeting faster expansion.
PwC Africa Family Business Leader and PwC Nigeria representative, Esiri Agbeyi, said African family businesses have built a solid foundation for sustainable growth through disciplined strategies and investments in technology and artificial intelligence.
“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,” Agbeyi said.
The report identified five key factors driving the success of high-performing family businesses: a clear sense of purpose, agility, disciplined capital deployment, reputation management and strategic tax planning.
Although 87 per cent of surveyed businesses said they have a clearly defined purpose, fewer than half communicate that purpose publicly, a gap PwC believes could limit their ability to build trust and strengthen their market position.
The survey also found that 52 per cent of respondents consider their businesses agile or very agile, exceeding the global average. This flexibility has enabled many firms to respond quickly to market changes, embrace innovation and adopt digital technologies.
Family businesses continue to favour long-term investments, with 82 per cent prioritising the reinvestment of profits rather than pursuing aggressive expansion. PwC said this approach has strengthened resilience and enabled businesses to diversify selectively into new markets and sectors.
Reputation emerged as another critical asset, with 91 per cent of respondents identifying it as essential to long-term success. However, nearly one-third expressed concerns about the vulnerability of their reputation in today’s complex operating environment.
The report also highlighted growing concerns over taxation, with 58 per cent of respondents citing tax-related challenges. This figure is significantly higher than the global average and reflects increasingly complex tax environments in countries such as Nigeria, South Africa and Kenya.
Technology and innovation are becoming central to future growth strategies, with more than half of respondents identifying artificial intelligence and technological advancement as key priorities for improving efficiency and competitiveness.
PwC Kenya Family Business Leader, Sunny Vikram, said many family-owned businesses in East Africa are increasingly leveraging AI and digital technologies to strengthen operations and improve service delivery.
The survey further revealed that sustainability is gaining prominence among business leaders, with more than 90 per cent expecting environmental and sustainability considerations to play a significant role in financial performance and long-term resilience over the next five years.
Despite the positive outlook, challenges remain. Two-thirds of respondents reported that inflation and supply chain disruptions had significantly affected their businesses during the past year, while geopolitical tensions, climate risks and changing consumer expectations continue to shape business decisions.
PwC said family businesses that successfully combine purpose-driven leadership, agility, strong governance, strategic tax planning and technology adoption will be best positioned to sustain growth and preserve their legacy across generations.