African Business Outlook Part of the Global Business Outlook
description
Transcript of African Business Outlook Part of the Global Business Outlook
![Page 1: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/1.jpg)
African Business OutlookPart of the Global Business Outlook
A joint survey effort between
Duke University,The South African Institute of Chartered Accountants
and
CFO magazine
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 1
![Page 2: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/2.jpg)
Top Internal Concerns for African CFOs
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 2
1. Ability to maintain margins
2. Attracting and retaining qualified employees
3. Working capital management
4. Maintaining morale/productivity
5. Ability to forecast results
6. Balance sheet weakness
7. Supply chain risk
8. IT governance
9. Counterparty risk
10. Protection of intellectual property
11. Data security
12. Pension obligations
13. Cost of health care
![Page 3: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/3.jpg)
Top External Concerns for African CFOs
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 3
1. Consumer demand
2. Price pressure from competitors
3. Global financial instability
4. Input costs
5. National employment outlook
6. Currency risk
7. Financial market regulation
8. Foreign competition
9. Cost of fuel
10. Credit markets/interest rates
11. Inflation
12. Government budget deficit
13. Corporate tax rates
14. Environmental concerns
![Page 4: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/4.jpg)
Additional Important Concerns for African CFOs
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 4
1. Labour instability 71.0%
2. Government Service Delivery 58.0%
3. Electricity supply 50.7%
4. Education/Skills pipeline 50.7%
5. Policy uncertainty 46.4%
6. State owned enterprise management 13.0%
7. Implementation of NDP 10.1%
Notes: Percentage of CFOs who ranked item in top 3 from this list of concerns.
![Page 5: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/5.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 5
Product Prices
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
-5%
0%
5%
10%
15%
Latin America United States Europe Asia
Africa
Notes: Presented data are the mean value for each region or country.
Forecast of % change over next 12 months
![Page 6: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/6.jpg)
Revenue
Notes: Presented data are the mean value for each region or country.
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 6
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
-5%
0%
5%
10%
15%
Latin America United States Europe Asia Africa
Forecast of % change over next 12 months
![Page 7: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/7.jpg)
Capital Spending
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 7
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
-5%
0%
5%
10%
15%
Latin America United States Europe Asia
Africa
Notes: Presented data are the mean value for each region or country.
Forecast of % change over next 12 months
![Page 8: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/8.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 8
Notes: Presented data are the mean value for each region or country,except medians are shown for Latin American earnings in Dec 2012 and Mar 2013.
Earnings
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
-5%
0%
5%
10%
15%
Latin America United States Europe Asia
Africa
Forecast of % change over next 12 months
![Page 9: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/9.jpg)
Wages & Salaries
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 9
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
-5%
0%
5%
10%
Latin America United States Europe Asia
Africa
Notes: Presented data are the mean value for each region or country,except medians shown for Latin America in Dec 2012 and Mar 2013.
#FT=Number of Fulltime Employees
Forecast of % change over next 12 months
![Page 10: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/10.jpg)
# FT Employees
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 10
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
-5%
0%
5%
10%
Latin America United States Europe AsiaAfrica
Forecast of % change over next 12 months
Notes: Presented data are the mean value for each region or country,except medians shown for Latin America in Dec 2012 and Mar 2013.
#FT=Number of Fulltime Employees
![Page 11: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/11.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013
Business Optimism Index(Scale from 0 to 100)
Country / Region
11
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 201335
45
55
65
75
Latin America United States Europe Asia
Africa
Notes: Presented data are the mean value for each region or country
![Page 12: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/12.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013
Business Optimism Index (Scale from 0 to 100)
Own Company
12
Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 201335
45
55
65
75
Latin America United States Europe Asia
Africa
Notes: Presented data are the mean value for each region or country
![Page 13: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/13.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013
Intention to Deploy Cash Reserves
13
US Europe Latin America Asia Africa0%
20%
40%
60%
80%
100%
Yes No
Is it likely that your firm will begin to deploy its cash reserves during the next 12 months?
![Page 14: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/14.jpg)
If not deploying cash, why not?
Latin American Business Outlook Duke University / FGV / CFO Magazine Jun 2013 14
Need cash
as liquidity
buffer
Currently
have few attracti
ve investm
ent opportu
nities
Lack
excess
cash
to deploy
Holding cash
to sa
ve for p
otential future lia
bilities
Do not need ca
sh re
serves as a
source
of funds
0%
10%
20%
30%
40%
50%
![Page 15: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/15.jpg)
If deploying, on what will accumulated cash reserves be deployed?
Latin American Business Outlook Duke University / FGV / CFO Magazine Jun 2013 15
Increase hiring
Marketing and advertising
Cover operating losses
Increase employee benefits/pay
Pay down debt/line of credit
Dividends or share repurchases
Acquisitions
Capital spending or investment
0% 10% 20% 30% 40% 50% 60% 70% 80%
![Page 16: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/16.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013
Corruption as a Risk Factor to Business Development
16
US Europe Latin America Asia Africa0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Not significant Moderate significant Very significant
The magnitude of business corruption (fraud, bribery, other ethical violations) as a risk factor, comparison across continents.
![Page 17: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/17.jpg)
Effects of Business Corruption
Latin American Business Outlook Duke University / FGV / CFO Magazine Jun 2013 17
Increases p
rice
Reduces t
ax revenues
Reduces q
uality
Hinders exp
ansion
Limits
competition
Hurts co
mpany reputation
Hurts employee m
orale0%
10%
20%
30%
40%
50%
60%
70%
80%
![Page 18: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/18.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013
CSR and Sustainability as Important Objectives
18
US Europe Latin America Asia Africa0%
20%
40%
60%
80%
100%
CSR and Sustainability is Important
The proportion of CFOs that state Corporate Social Responsibility (CSR) and Sustainability as important objectives.
![Page 19: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/19.jpg)
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013
Scrutiny of Executive Pay
19
US Europe Latin America Asia Africa0%
20%
40%
60%
80%
100%
Yes No
Has the level of executive pay at your firm recently come under scrutiny?
![Page 20: African Business Outlook Part of the Global Business Outlook](https://reader035.fdocuments.us/reader035/viewer/2022062422/56814094550346895dac2884/html5/thumbnails/20.jpg)
Professional Tasks Reported by African CFOs% of CFOs that list as a “Top 5” task
African Business Outlook Duke University / SAICA / CFO Magazine Jun 2013 20
1. Accounting and Financial Reporting 84.1%
2. Cost Control 58.0%
3. Cash/Liquidity Management 56.5%
4. Managing Efficiencies 43.5%
5. Risk Management 42.0%
6. Regulatory Compliance 40.6%
7. Managing Corporate Performance 34.8%
8. Strategic Formulation and Planning 31.9%
9. Strategic Execution 27.5%
10. Capital Structure and Financing Decisions 27.5%
11. Investment and Acquisition Decisions 11.6%
12. Investor Relations 7.2%