Family-owned businesses across Africa are growing faster than their global counterparts, even as inflation, tax complexity and supply chain disruptions weigh on the operating environment, according to PwC’s Africa Family Business Survey 2025.
The survey, which sampled 79 family businesses across East, West and Southern Africa, found that 66% reported sales growth in the past year – nine percentage points above the global average of 57%. Despite the strong showing, businesses are charting a cautious path forward: 53% plan to grow steadily over the next two years, while only 27% are pursuing faster expansion.
Reinvestment over expansion
The findings point to a discipline-first approach to capital. Some 82% of respondents said they prioritise reinvesting profits back into the business rather than chasing rapid growth, a strategy PwC says reflects a focus on resilience over speed.
That caution is not without cause. Two-thirds of the businesses surveyed said inflation and supply chain disruptions had significantly affected their operations over the past year, while geopolitical risk and shifting consumer expectations added further pressure.
Tax burden tops global average
Tax has moved from a back-office compliance issue to a front-line strategic concern. Fifty-eight percent of respondents cited tax challenges as significant — a figure PwC says sits well above the global benchmark — with businesses in Nigeria, South Africa and Kenya navigating increasingly complex regimes.
Purpose without publicity
The survey also flagged a “purpose-action gap”: 87% of family businesses said they have a clearly defined purpose, but fewer than half communicate it externally. PwC’s Africa Family Business Leader, Esiri Agbeyi, said the next phase for these businesses lies in turning that internal clarity into external value — scaling purpose, sharpening decision-making, and using reputation and long-term capital as growth levers.
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Reputation itself emerged as a double-edged asset. While 91% of respondents called it critical to long-term success, nearly a third said their reputation feels vulnerable in the current climate — a tension PwC’s South Africa team linked to the conservative, legacy-driven approach many family firms take to public visibility.
Technology as a growth lever
More than half of the businesses surveyed said they are prioritising technology and artificial intelligence to improve efficiency and competitiveness, a trend PwC’s Kenya team said it is particularly pronounced in East Africa, where digital adoption is reshaping service delivery and operating models.
Agility was another standout metric: 52% of African family businesses described themselves as agile or very agile — again ahead of the global average — a quality PwC executives say will increasingly separate businesses that sustain growth from those that stall as conditions tighten.
Outlook
With more than 90% of respondents expecting sustainability to shape financial performance over the next five years, PwC said the businesses best positioned for the next decade will be those that combine clear purpose, agility, disciplined capital allocation, reputation management and proactive tax strategy.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.