By Amechi Ogbonna
The firm, PriceWaterHouseCoopers (PwC), has called on African governments to leverage the recently introduced African Continental Free Trade Agreement (AfCFTA) to bolster economic growth amid the headwinds induced by the COVID-19 pandemic.
Speaking at the virtual media launch of the 8th edition of PwC’s Africa Business Agenda 2021 report, at the weekend, based on the CEO survey in 5, 050 companies in over 100 countries, Uyi Akpata, Regional Senior Partner PwC West Africa, noted that, “in the light of the concerns that Africa’s CEOs have on government policy uncertainty, tax policy uncertainty, cyber threats, and over-regulation, it is an opportunity for African business leaders to reimagine every aspect of their operating model.
“Further, companies and countries in West Africa should take advantage of the Africa Continental Free Trade Area (AfCFTA) Agreement, which came into force on January 1, 2021, to drive growth and bolster their economies through increased continental trade.”
Chief Executive Offices in over 5000 African companies had expressed confidence in their own company’s revenue prospects and strength of the global economy in 2021 than they were in 2020. They also showed concerns around government policies including cybersecurity, technology, and people within the various countries.
In the wake of the pandemic and its impact on government revenues across the continent, the PwC survey noted that tax policy uncertainty posed no little threats on economic stimulation efforts of African governments, having been ranked third, up from seventh last year.
The CEOs interviewed in the survey undoubtedly watched debts accumulate as governments intervened with stimulus packages, realising that the public will expect businesses to pay their fair share.
In Africa, 56 per cent of CEOs are already factoring increasing tax obligations into their strategic risk management activities.
