‘SA CEOs confident of business growth despite expected recession’
Despite an anticipated recession, South African CEOs are already mitigating against expected risks with hopes of shaping business growth over the next few years.
This is according to KPMG’s 2022 CEO Outlook Survey, which examined 1 325 CEOs around the world on their three-year perspective on business, inflationary pressures, and geopolitical tensions.
The research was released locally in Sandton on Monday.
“A promising 72% of local executives have already taken steps to boost productivity in preparation for [the] anticipated recession, indicating CEOs are cautiously focused on future opportunities during such uncertainty,” says KPMG SA CEO Ignatius Sehoole.
Hiring freeze
However, in the short term, the survey shows that 82% of local CEOs, compared to 75% globally, have already implemented or plan to implement a hiring freeze in the next six months to cushion operations against the anticipated recession.
On the other hand, 88% of local CEOs – compared to 80% globally – have indicated they are considering downsizing their employee base in the next six months.
The survey revealed that CEOs are prioritising technology, talent and ESG (environmental, social and governance) initiatives to grow their businesses. It says 84% of local executives are focusing on digital investments, with 58% allocating more capital investment towards buying new technology.
The report notes that ahead of supply chain and regulatory risks, disruptive technology has emerged as the top risk and greatest threat to organisational growth over the next three years with many CEOs citing it as a priority.
It indicates that 82% of local
CEOs said they are prepared for cyberattacks, compared to 56% globally.
Another priority for CEOs is the attraction and retention of talent.
“CEOs in South Africa are changing how they support and attract talent, and their efforts are buoyed by a focus on their people and experimenting with ways of working,” read the report.
It notes that 70% of local executives expect to increase the headcount over the long term to address growth objectives, compared to 76% of global executives.
Sehoole says a widely shared view from local executives is their preference for their workforces to return to the office on a full-time basis in three years.
Sehoole says the confidence in the resiliency of the global economy over the next six months is encouraging to see, with 64% of local CEOs being optimistic in comparison to 73% of global executives.
In her response to the survey’s findings, Business Leadership SA CEO Busi Mavuso says South Africa will be entering the anticipated recessionary period on “an extremely weak footing”.
She says in this context, the country desperately needs the global economy to recover quickly and resume growth to lift our economy along with other emerging markets.