African Family Businesses Defy Economic Headwinds, Post 66% Sales Growth – PwC

BY BUKOLA ARO-LAMBO AND OLUSHOLA BELLO, Lagos

Family businesses across Africa demonstrated remarkable resilience amid prevailing economic uncertainties, with 66 per cent recording sales growth in the past year despite inflationary pressures, regulatory changes and geopolitical challenges, according to PwC’s Africa Family Business Survey 2025.

The survey, which covered 79 family-owned businesses across East, West and Southern Africa, showed that African firms outperformed their global counterparts, where only 57 per cent reported sales growth.

PwC said the strong performance underscores the ability of family businesses on the continent to adapt to changing market conditions while maintaining a long-term approach to growth and sustainability.

Although growth remains robust, the survey indicated that business owners are pursuing cautious expansion strategies. About 53 per cent of respondents said they are targeting steady growth over the next two years, while 27 per cent are focused on faster expansion.

The report identified five key factors underpinning the success of high-performing family businesses: purpose, agility, long-term capital deployment, reputation and effective tax management.

While 87 per cent of respondents said their businesses have a clearly defined purpose, PwC noted that fewer than half communicate that purpose externally, describing it as a missed opportunity to strengthen trust, brand value and competitive positioning.

The survey also found that African family businesses are becoming increasingly agile, with 52 per cent of respondents describing their organisations as agile or very agile, a figure that exceeds the global average. According to PwC, this flexibility has enabled firms to innovate and respond swiftly to evolving market realities.

Reinvestment emerged as a major growth strategy, with 82 per cent of respondents indicating that they reinvest profits into their businesses to strengthen resilience and support controlled expansion.

PwC further noted that reputation remains a critical asset, with 91 per cent of respondents identifying it as essential to long-term success. However, nearly one-third admitted that their reputation feels vulnerable in the current operating environment.

Commenting on the findings, Africa Family Business Leader at PwC Nigeria, Esiri Agbeyi, said family businesses across the continent have laid a strong foundation for sustained growth.

“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 said.

Regionally, the report showed that family businesses in West Africa are prioritising fiscal stability, regional integration and infrastructure development. In Southern Africa, firms are responding to energy challenges by diversifying power sources, while businesses in East Africa are accelerating digital transformation and expanding trade and logistics networks.

Taxation also emerged as a growing concern, with 58 per cent of respondents citing tax-related challenges, significantly above the global average. PwC said increasingly complex tax regimes in major markets such as Nigeria, South Africa and Kenya are making tax planning a strategic priority for family-owned enterprises.

Technology and innovation are equally gaining prominence, with more than half of respondents identifying artificial intelligence and technological advancement as critical to future competitiveness.

Family Business Leader for East Market at PwC Kenya, Sunny Vikram, said digital innovation is increasingly reshaping business strategies across the region.

“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.

The survey further revealed that most family businesses are investing in core operations, talent development and digital capabilities, while more than 90 per cent expect sustainability to play a significant role in financial performance and resilience over the next five years.