PricewaterhouseCoopers Company on Tuesday launched the Family Business survey at a time when the East African family businesses have seen mixed performance over the last financial year (pre-Covid-19), with 46% experiencing growth and 31% seeing a sales reduction.
According to the report, 53% of East African family businesses (FBs) COVID-19 led to a reduction in sales, slightly higher than global FBs (46%).
East Africa family businesses are more optimistic in 2021, with 60% of East African family businesses expecting to see growth, and very positive from 2022 (91% expecting growth).
The key priorities facing East African family businesses over the next two years are expanding into new markets, client segments, increasing use of new technologies, improving digital capabilities, introducing new products and services, the increasing use of new technologies, improved digital capabilities and rethinking their business models.
The survey results show that levels of trust, transparency and communication are felt to be quite high in family businesses in East Africa. Just under three quarters of East African family businesses feel they have a clear sense of company and/or family values and these values have helped a clear majority during the COVID-19 pandemic even if only 39% have their values and company mission documented in written form.
Levels of trust, transparency and communication are felt to be quite high. Trust within the family, trust in their suppliers and customers, and trust between their businesses and other stakeholders are sustaining features amongst these businesses, especially during periods of significant disruption.
Michael Mugasaa, Partner and Entrepreneurial & Private Business Leader at PwC said,‘The strong fundamentals that are the hallmark of family businesses – commitment to values, long-term thinking, sensible leverage – puts them in a strong position for faster recovery from the pandemic disruptions. More so, because family businesses tend to be trusted businesses and, in most sectors, they are very resilient.’
Family businesses in East Africa are rising to the challenge at a time when financial uncertainty has already impacted many of their forecasts. Whilst 60% anticipate growth in 2021, a much higher percentage – 91% – expect that their businesses will grow in 2022, an impressive level of optimism that we may find tempers over time in response to changing circumstances on the growth.
