A STUDY by auditing and accounting firm PwC has found that almost all company bosses in Africa are concerned about the effect of the exchange-rate volatility on their businesses.
The study‚ which interviewed 153 CEOs of private and government entities across 15 countries‚ said they were also extremely worried about social instability and governments’ responses to the fiscal deficit and debt burden faced by the countries in which their businesses operate.
PwC Africa CEO Hein Boegman said during the launch of the Africa Business Agenda survey that although African countries faced many issues‚ company leaders should do their best to focus on the positives and how they were going to solve the problems.
“The global financial and economic crisis has revealed Africa’s vulnerability to a number of external economic shocks.
“These include the decline in commodity prices fuelled by the economic slowdown in China; a marked decline in the demand for commodities; and the collapse in value of the emerging-market currencies against the US-dollar in anticipation of an interest rate hike‚” said Boegman.
He said companies that wanted to invest in African countries would not reap rewards overnight but their chances of succeeding in making big profits would materialise only if they invested for the long haul.