Nairobi — East African family businesses grew by 20 percent last year compared to a similar period in 2021, despite tough economic challenges.
Data from PricewaterhouseCoopers (PwC) shows businesses in Africa improved from 46 percent growth in 2021 to 64 percent in 2022.
The East Africa Family Business Survey involved 95 family-run firms in EA, including Kenya, Tanzania, Uganda, Rwanda, and Ethiopia.
Its purpose was to gauge whether current leaders and the next generation of family businesses seek to build trust and secure their legacy.
“Considering the optimism broadly shared amongst many family business owners, now is an opportune time to focus on one of the key strengths of East Africa’s family enterprises: trust,” said Michael Mugasa, Partner and Leader, Private Business Services, PwC East Market Area.
“While family businesses have long relied on the trust premium they’ve built for ensuring strong relationships with key stakeholders like their customers, our survey showed many organisations have been slow to adapt to the evolving nature of trust today,” he added.
Business also said that it was essential to be trusted by customers, employees, and family members.
Among them, 56 percent are fully trusted by customers, 47 percent are employees, and 77 percent are family members, which is slightly higher than the global results.
Top priorities for family businesses include expanding into new markets, increasing customer loyalty, strategic acquisitions, the business’ carbon footprint, and social responsibility.
An expanded audience of stakeholders, the report added, includes the general public and younger generations such as millennials and generation Z, who have higher expectations for customer satisfaction and growth.