Despite recording strong sales growth across the continent, African family businesses are increasingly grappling with tax-related challenges that are shaping their long-term strategies, according to PwC's Africa Family Business Survey 2025.
The survey revealed that 58 percent of family-owned businesses identified taxation as a major challenge, significantly higher than the global average, as increasingly complex tax regimes in key markets such as Nigeria, South Africa and Kenya make tax planning a key business priority.
PwC's findings come as family businesses are demonstrating resilience amid inflationary pressures, regulatory changes, technological disruption and changing geopolitical dynamics. The survey, which covered 79 family businesses in Eastern, Western and Southern Africa, revealed they recorded a sales increase of 66 per cent last year, outperforming the global average of 57 per cent.
The report says successful family businesses are increasingly relying on five key drivers of performance, including purpose, agility, long-term capital deployment, reputation and tax management.
According to PwC, African family businesses are becoming more strategic in their approach to growth. However, performance remains strong, with 53 percent of respondents saying they are looking for sustained growth over the next two years, while 27 percent are targeting rapid expansion.
The survey found that reinvestment is central to business sustainability, with 82 percent of respondents plowing profits back into their operations to strengthen resilience and support controlled expansion.
PwC also highlighted the growing importance of reputation, with 91 percent of respondents citing it as critical to long-term success. However, almost one-third admitted that their reputation feels vulnerable in the current operating environment.
Esiri Agbeyi, Africa Family Business Leader at PwC Nigeria, said the continent’s family businesses have established a solid foundation for future growth. “Family businesses in Africa have created a strong foundation for growth.
“Disciplined strategies and a clear focus on technology and AI show that the fundamentals are in place. The next step is to build on these strengths by enhancing purpose, improving decision-making, and activating reputation and long-term capital as drivers of growth.”
The survey also pointed to increased adoption of technology and innovation, with more than half of respondents considering artificial intelligence and technological advancements as important for future competitiveness.
Sunny Vikram, family business leader, East Market at PwC Kenya, said digital transformation is becoming a key pillar of business strategy. “With the rapid advancement of AI and digital technologies, many family businesses, particularly in East Africa, are rethinking their growth strategies, leveraging innovation to enhance service delivery, improve operational efficiency and create more resilient, competitive business models for the long term,” Vikram said.
At a regional level, PwC said family businesses in West Africa are focusing on fiscal sustainability, regional integration and infrastructure development, while businesses in Southern Africa are responding to energy challenges through power diversification initiatives. In East Africa, companies are accelerating digital transformation and expanding trade and logistics networks.