Tax Concerns Rise As African Family Businesses Navigate Growth – PwC

Despite recording strong sales growth across the continent, African family businesses are increasingly grappling with tax-related challenges that are shaping their long-term strategies, according to PwC’s Africa Family Business Survey 2025.

The survey revealed that 58 per cent of family-owned businesses identified taxation as a major challenge, significantly higher than the global average, as increasingly complex tax regimes in key markets such as Nigeria, South Africa and Kenya make tax planning a critical business priority.

PwC’s findings come even as family businesses continue to demonstrate resilience amid inflationary pressures, regulatory changes, technological disruption and shifting geopolitical dynamics. The survey, which covered 79 family businesses across East, West and Southern Africa, showed that 66 per cent recorded sales growth in the past year, outperforming the global average of 57 per cent.

The report noted that successful family businesses are increasingly relying on five key drivers of performance, including purpose, agility, long-term capital deployment, reputation and tax management.

According to PwC, African family businesses are becoming more strategic in their approach to growth. While performance remains strong, 53 per cent of respondents said they are pursuing steady growth over the next two years, while 27 per cent are targeting faster expansion.

The survey found that reinvestment remains central to business sustainability, with 82 per cent of respondents channeling profits back into their operations to strengthen resilience and support controlled expansion.

PwC also highlighted the growing importance of reputation, with 91 per cent of respondents describing it as critical to long-term success. However, nearly one-third admitted that their reputation feels vulnerable in the current operating environment.

Africa Family Business Leader at PwC Nigeria, Esiri Agbeyi, said the continent’s family businesses have established a solid foundation for future 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.

The survey also pointed to increasing adoption of technology and innovation, 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 transformation is becoming a major pillar of business strategy. “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.

Regionally, PwC said family businesses in West Africa are concentrating on fiscal stability, regional integration and infrastructure development, while businesses in Southern Africa are responding to energy challenges through power diversification initiatives. In East Africa, firms are accelerating digital transformation and expanding trade and logistics networks.