{"id":757247,"date":"2024-03-05T11:05:46","date_gmt":"2024-03-05T09:05:46","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=757247"},"modified":"2024-03-05T11:53:32","modified_gmt":"2024-03-05T09:53:32","slug":"the-two-biggest-threats-to-business-in-south-africa-right-now-according-to-ceos","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/757247\/the-two-biggest-threats-to-business-in-south-africa-right-now-according-to-ceos\/","title":{"rendered":"The two biggest threats to business in South Africa right now – according to CEOs"},"content":{"rendered":"\n

The latest PwC CEO Survey in Africa report identified inflation and macroeconomic volatility in Sub-Saharan Africa as the two biggest threats to businesses in 2024.<\/p>\n\n\n\n

PwC surveyed 4,702 CEOs in 105 countries and territories from October to November 2023, with a total of 380 in Sub-Saharan Africa (SSA).<\/p>\n\n\n\n

PwC Research undertook the survey, noting that the global and Sub-Saharan figures in the report were weighted proportionally to ensure the CEOs’ views were representative across all major regions. <\/p>\n\n\n\n

According to the report<\/a>, the challenges noted by CEOs for 2024 are real. Regulatory uncertainty, infrastructure challenges, limited financial resources, and shortages of specific skills can all derail growth in 2024. <\/p>\n\n\n\n

However, when asked about what they believe are the major threats to their businesses in the next 12 months, Sub-Saharan CEOs noted inflation and macroeconomic volatility as significant concerns.<\/p>\n\n\n\n

“CEOs in SSA countries expect challenges like inflation and macroeconomic volatility to be key threats, with a high probability of significant financial loss,” said PwC.<\/p>\n\n\n\n

Other threats mentioned by CEOs include climate change, social inequality, cyber risks, health risks, and geopolitical conflicts such as the ongoing wars in Ukraine and Palestine. <\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

The report added that African countries with high levels of indebtedness – such as South Africa – face increased vulnerabilities under the current economic conditions. <\/p>\n\n\n\n

Compared to a year ago, the budget deficit for 2023\/24 in South Africa is estimated to worsen from 4% to 4.9% of GDP.<\/p>\n\n\n\n

The higher budget deficit means that debt-service costs in 2023\/24 have been revised higher by an additional R15.7 billion to R356 billion.<\/p>\n\n\n\n

Finance Minister Enoch Godongwana noted in his Budget Speech that debt-service costs will absorb more than 20% of revenue.<\/p>\n\n\n\n

\u201cTo put this into perspective, spending on debt-service costs is greater than the respective budgets for social protection, health, or peace and security,\u201d he said.<\/p>\n\n\n\n

Debt will now peak at 75.3% of GDP in 2025\/26.<\/p>\n\n\n\n

The risk of inflation and economic instability have also impacted the forecast for the prices of goods and services. <\/p>\n\n\n\n

The report further highlighted that over half of the CEOs indicated that they would increase the price of their services in 2024. <\/p>\n\n\n\n

However, despite these pressures, most CEOs (44%) in Sub-Saharan Africa expect to employ more people to increase their businesses’ headcount.<\/p>\n\n\n\n

“One of Africa’s great advantages is its youthful population. As businesses in Africa reinvent and adapt to change, they need the next generation of talent to engage and participate,” the report said. <\/p>\n\n\n\n

It added that Africa’s youthful population is in a prime position to take advantage of upskilling themselves with the use of new technologies.<\/p>\n\n\n\n

\n\n\n\n

Read: Major consumer shift in South Africa as budgets come under strain<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The latest report from PwC’s CEO Survey in Africa has highlighted significant business threats across Sub-Saharan African regions.<\/p>\n","protected":false},"author":10,"featured_media":644211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[2407,853],"class_list":["post-757247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-pwc","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/757247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=757247"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/757247\/revisions"}],"predecessor-version":[{"id":757529,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/757247\/revisions\/757529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/644211"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=757247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=757247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=757247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}