Family-owned businesses across Africa are demonstrating stronger resilience than their global counterparts, with 66 per cent reporting sales growth over the past year despite inflationary pressures, tax challenges and economic uncertainty.
This was revealed in the PricewaterhouseCoopers (PwC) Africa Family Business Survey 2025, which surveyed 79 family businesses across East, West and Southern Africa.
According to the report, African family businesses outperformed the global average, where only 57 per cent of respondents reported sales growth during the same period.
The survey further showed strong optimism among business owners, with 53 per cent expecting steady growth over the next two years, while 27 per cent are targeting faster expansion, reflecting confidence in future opportunities despite a challenging business environment.
PwC noted that the positive performance comes amid increasing economic pressures across the continent, including geopolitical tensions, climate-related risks, currency volatility and rapid technological change.
Africa Family Business Leader at PwC Nigeria, Esiri Agbeyi, attributed the sector’s resilience to disciplined business strategies and growing investment in technology.
“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 found that African family businesses remain focused on long-term value creation, with 82 per cent prioritising the reinvestment of profits rather than relying on aggressive expansion funded by external borrowing.
Regional trends highlighted varying growth drivers across the continent. In West Africa, businesses are benefiting from reforms aimed at improving fiscal stability, regional integration and infrastructure development.
East African firms are leveraging digital transformation and innovation-driven ecosystems, while businesses in Southern Africa are adapting to persistent energy challenges through investments in more reliable power solutions.
PwC identified agility, long-term capital allocation, reputation management, technology adoption and strategic tax planning as the major factors supporting the success of high-growth family businesses.
More than half of respondents described their businesses as agile or very agile, surpassing the global average. According to the report, this adaptability has enabled companies to respond quickly to changing market conditions and emerging opportunities.
Technology and artificial intelligence are also becoming central to growth strategies. More than 50 per cent of respondents identified technological advancement and AI as key priorities for improving operational efficiency and competitiveness.
Despite the positive outlook, taxation emerged as a significant concern. About 58 per cent of respondents cited tax-related challenges as a major issue, considerably higher than the global average.
PwC noted that increasingly complex tax regimes in countries such as Nigeria, South Africa and Kenya are making tax planning a critical component of business strategy.
Inflation and supply chain disruptions also continue to weigh on operations, with nearly two-thirds of respondents reporting significant impacts from both challenges over the past year.
Family-owned businesses remain a vital part of Africa’s economy, accounting for a substantial share of private sector activity and employment across the continent.
The report noted that many African family businesses owned by high-net-worth individuals are increasingly expanding their investments globally through family offices, enabling them to hedge against currency risks, diversify assets and maintain long-term investment horizons.
According to the Africa Wealth Report 2023, the continent’s high-net-worth individual population is projected to rise to about 195,000 by 2032, representing a 42 per cent increase from the 138,000 recorded in 2022.
Mauritius is expected to lead the growth, with its high-net-worth population forecast to increase by 75 per cent over the next decade.
In Nigeria, the report estimates there are approximately 9,800 millionaires and four billionaires, including Aliko Dangote, Abdul Samad Rabiu, Mike Adenuga and Femi Otedola.
Industry analysts say the findings underscore the growing strength of African family businesses and their increasing role in driving economic growth, job creation and wealth generation across the continent.
