Johannesburg - Business in Africa is getting riskier, according to the PricewaterhouseCoopers inaugural survey looking at risk on the continent.
The survey - Africa risk in review 2015 - notes executives that do business on the continent are increasingly concerned that risks to their organisation are on the rise.
PwC’s report covers 27 of the 54 countries on the continent and reached more than 350 respondents across all major industries.
The main risks executives cited as being concerning were increases in the regulatory environment, business transformation, a lack of infrastructure and IT risks.
Across the continent, ongoing political, economic and social developments are raising concerns among businesses. The lack of basic infrastructure, concerns over access to healthcare and food security as well as the effects of climate change are accelerating, the survey found.
The survey - which was completed before the latest market rout - also noted technology is increasingly disruptive through innovations such as cloud computing, social media and the internet of things. There is also an increase in awareness by African businesses of the need to manage cybercrime, it notes.
Surprisingly, aspects such as bribery, corruption and fraud did not factor as high up the list as expected. This, says Carmen le Grange, partner at PwC Risk Assurance, is because companies are putting programmes in place to manage this risk.
Le Grange adds the increase in risk is opening up gaps in risk management, especially in the areas of regulation, data risk management and organisational resilience.
Despite the risks, CEOs are seeing an upside to business in Africa, and are using the risks as an opportunity to expand their business and be disruptive.
Africa has a higher proportion of risk leaders - at 29 percent - than global organisations (17 percent) and are generally also not early adopters of new technology.
Le Grange adds companies are also looking to technology to manage risk.
IOL