Dike Onwuamaeze
The ‘PwC Africa Family Business Survey 2025’ has identified economic volatility, tax challenges and changing consumer expectations and behaviour as global megatrends that had most significant impact on family businesses in Africa in 2025.
The report released yesterday stated that, “Africa family businesses are facing a more demanding operating environment, with economic volatility and tax challenges now among the most significant forces shaping strategic decisions.”
It stated that 66 per cent of the survey’s respondents noted that, “inflation and supply chain disruption have also had a meaningful impact on their business over the past year, above the global average of 58 per cent.
“At the same time, almost half (58 per cent) cite tax challenges, higher than the global average of 35 per cent,” while 53 per cent of respondent mentioned changing consumer expectations and behaviour as a challenge to their businesses against global average of 41 per cent.
According to Family Business Leader, West Market, PwC, Mr. Edward Gomado, “rising tax complexity and external uncertainty are reshaping the business landscape, but the continued growth of many African family businesses shows that resilience, discipline and long-term thinking remain powerful advantages.”
The report noted that governments are under increasing pressure to mobilise domestic revenue as financing gaps widen, debt service costs rise and traditional external funding becomes less reliable.
“In response, tax systems are becoming more dynamic, with reforms focused on broadening the tax base, strengthening enforcement, improving compliance, and digitising administration.
“This is evident across African markets, where tax reform remains active but varied. Nigeria has recently implemented a major tax overhaul, South Africa and Kenya are advancing revenue and compliance measures, while Ghana has rolled back selected taxes.
“The direction may differ, but tax is clearly emerging as a strategic business issue across the region.
“The significance goes beyond immediate cost pressures. Economic and tax uncertainty can shape how businesses invest, how quickly they move, and how confidently they plan. This elevates tax from a compliance issue to a strategic one.
“In Nigeria, for example, recent tax reforms mean that undistributed profits may be deemed distributed and subject to tax, directly affecting business outcomes,” it stated.
The report added that reputation could no longer be taken for granted as nearly a third of respondents (32 per cent) noted that their reputation feels somewhat or highly vulnerable in the current environment.
It stated that negative attention and public activism were cited as the leading threats, which suggested that, “reputation is no longer shaped only by what a business does, but also by how clearly it communicates its values, responds to external expectations and navigates an increasingly visible public landscape.”
The report further stated that 37 per cent of respondents stated that negative media coverage or public scrutiny was among factors that posed the greatest risk to reputation of family business in Africa.
PwC recommended that family businesses need to reframe conversations around the issues shaping long-term value, balancing a clear sense of purpose with the choices that drive resilience, growth and continuity.
This, according to the report included reviewing the relationships, structures and decisions that influence resilience, growth and continuity from partners and business processes to capital allocation, decision-making and value preservation across generations.
The report added: “Review your business ecosystem and operating model. Take a closer look at the partners, markets, relationships and business processes shaping your organisation.
“In a more visible and fragmented environment, these choices increasingly influence trust, reputation, resilience, and the ability to adapt at pace.
“The priority should be to ensure that both external relationships and internal processes are helping the business respond to change, rather than slowing execution or limiting flexibility.”
The PwC also recommended strengthening governance and decision-making by clarifying, “how decisions are made across family, board and management, and whether governance structures are effectively supporting agility, alignment and accountability.
“Clearer decision rights can reduce friction, support smoother leadership transitions and help the business respond more confidently in a fast-changing environment.”
It also advised family businesses to allocate capital and rewards with greater intent.
It added: “Be more deliberate about how capital is deployed and how value is shared. This includes aligning investment decisions to long-term priorities such as expansion, diversification, technology, talent and sustainability, while also reviewing the balance between reinvestment, family returns and management incentives.”
The Africa Family Business Leader, PwC, Esiri Agbeyi, was quoted to have said, “African family businesses have built a strong foundation for growth.”
Agbeyi noted that disciplined strategies and a clear focus on technology and AI showed that the fundamentals are in place.
“The next step is to build on these strengths by scaling purpose, improving decision-making, and activating reputation and long-term capital as drivers of growth.
“Strengthening these areas today will help family businesses grow with greater confidence and agility.”
