In this article, Shital Shah Shah, CEO of Adili Group, shares some insights on four key areas that businesses should consider to improve their outlook in 2024 and beyond: climate and ESG, digital transformation and innovation, talent and culture, and regional growth markets.

Climate and ESG
Businesses are increasingly recognizing the importance of addressing climate change and environmental, social and governance (ESG) issues. These issues have an impact not only on their performance and reputation but also on their ability to attract and retain customers, investors, and talented employees. According to the KPMG 2023 CEO Outlook, 69 per cent of global CEOs have fully integrated ESG into their business to create value. Moreover, almost a quarter (24 per cent) of CEOs believe that ESG will have the greatest impact on their customer relationships in the next three years.

Businesses will need to be more aware of the developments and expectations of their stakeholders and align their strategies and operations with the best practices and standards. They will also need to assess and manage the business risks associated with climate and ESG issues, such as regulatory changes, reputational damage, operational disruptions and litigation. Frequent and comprehensive risk assessments can help businesses identify and mitigate these risks, and seize the opportunities that arise from them.

Digital Transformation and Innovation
The COVID-19 pandemic has accelerated the adoption of digital technologies and solutions across all sectors and industries. Businesses had to adapt to the changing needs and preferences of their customers and employees. A significant number of urban Africans own Internet-capable devices and regularly use the Internet. According to a report by McKinsey, if infrastructure investment continues, the Internet will become more accessible on a larger scale in the coming decade. This could add $300 billion annually to Africa’s GDP.

To benefit from this trend, businesses need to reshape their business models and processes through digital transformation and leverage the potential of new tools and technologies, such as artificial intelligence (AI), cloud computing, big data and blockchain. These tools can help businesses enhance their efficiency, productivity, quality, customer experience and competitiveness, as well as create new products, services and markets. However, they also expose businesses to new risks, such as cyberattacks, data breaches, ethical dilemmas and skills gaps. An emphasis on cyber security is a vital part of the digital transformation which needs also to be considered by businesses.

Talent and Culture
The most valuable asset of any business is its human capital, which drives its success and growth. However, the COVID-19 pandemic has brought about unprecedented challenges and changes to the workforce, such as remote working, concerns about health and safety, mental and emotional stress, and skills obsolescence.

According to SMASE Africa, the current African workforce lacks the necessary skills and knowledge to fill the existing STEM-based jobs. To address these issues, businesses need to invest in the skills development and upskilling of their employees, especially in the areas of digital literacy, creativity, problem-solving, and collaboration.

Additionally, businesses need to review and revise their employee value proposition and offer flexible, inclusive, and supportive work environments that cater to their employees’ diverse and evolving needs and expectations. It is also important to foster a culture of trust, transparency, accountability, and innovation that encourages and empowers employees to perform at their best and contribute to the organization’s vision and goals.

Regional Growth
According to the World Bank, East Africa’s GDP growth is projected to rebound to 5.7% in 2024, after contracting by 0.6% in 2020 due to the COVID-19 pandemic. Among the East African countries, Rwanda and Tanzania are expected to grow at the fastest rates, at 8.5% and 6.1% respectively in 2024.
To capitalize on this opportunity, businesses need to explore and expand their presence and operations in the regional markets and leverage the advantages and synergies that they offer. They also need to take advantage of the regional integration and cooperation initiatives, such as the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the African Continental Free Trade Area (AfCFTA), which aim to facilitate trade, investment and movement of goods, services and people across the continent. By doing so, businesses can access new and larger markets, reduce costs and barriers, and increase their competitiveness and profitability.

Adili Group is ready and committed to helping businesses in the region overcome the challenges and seize the opportunities in 2024 and beyond. We aim to help our clients at each stage of their business and be part of their journey.

For further information, please contact us at info@adili.africa