Family-owned businesses across Africa are demonstrating strong resilience in the face of economic headwinds, with 66 per cent recording sales growth in the past year despite rising inflation, tax burdens and broader economic uncertainty.
This is according to the PricewaterhouseCoopers Africa Family Business Survey 2025, which surveyed 79 family-owned businesses across East, West and Southern Africa.
The survey showed that African family businesses outperformed the global average, with 66 per cent reporting sales growth compared to 57 per cent of respondents worldwide.
According to the report, 53 per cent of respondents expect to focus on steady growth over the next two years, while a further 27 per cent are aiming for faster expansion, underscoring strong confidence in future opportunities despite persistent economic challenges.
PwC said the strong performance of African family businesses comes amid mounting economic pressures, including geopolitical uncertainty, climate-related risks, currency volatility and rapid technological change.
“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,” said Esiri Agbeyi, Africa Family Business Leader at PwC Nigeria.
The report also highlighted a strong commitment to long-term value creation, with 82 per cent of respondents prioritising the reinvestment of profits rather than pursuing aggressive growth strategies funded through external capital.
The survey noted that family businesses across Africa are drawing strength from region-specific developments that are helping them navigate economic challenges and sustain growth.
In West Africa, firms are benefiting from reforms designed to enhance fiscal stability, deepen regional integration and improve infrastructure. East African businesses are capitalising on digital transformation and innovation-led ecosystems, while their Southern African counterparts are responding to persistent energy challenges by investing in more reliable power solutions.
The survey identified agility, long-term capital investment, reputation management, technology adoption and strategic tax planning as some of the key drivers of success among high-growth family businesses.
More than half of the respondents described their businesses as agile or highly agile, surpassing the global average. According to PwC, this flexibility is helping family-owned firms adapt more quickly to shifting market conditions and seize emerging growth opportunities.
Technology is emerging as a key driver of growth for African family businesses, with more than half of respondents identifying technological advancement and artificial intelligence as top strategic priorities. The survey said businesses are increasingly embracing digital tools to enhance efficiency, strengthen competitiveness and support long-term growth.
Despite this optimism, taxation remains a major concern. About 58 per cent of respondents cited tax-related challenges as a significant issue, well above the global average. PwC noted that increasingly complex tax regimes in countries such as Nigeria, South Africa and Kenya are making tax planning an essential part of business strategy and decision-making.
Inflation and supply chain disruptions continue to weigh heavily on African family businesses, with nearly two-thirds of respondents saying both challenges had a significant impact on their operations over the past year.
Family-owned enterprises account for a substantial share of private sector activity across the continent and rank among Africa’s largest employers. Many are owned by high-net-worth individuals whose business interests and investments extend beyond Africa’s borders.
The report noted that in volatile economic environments, family offices play an important role in providing financial stability. They enable capital to be deployed across global markets, help hedge against currency fluctuations and support long-term investment strategies aimed at preserving and growing wealth.
