In light of South Africa’s pressing macroconcerns, including social instability, government’s response to the fiscal deficit and debt burden, overregulation and unemployment, only 37% of local CEOs are very confident of growth in their own companies over the short to medium term, the latest PwC Global CEO Survey reveals.

The survey, conducted between September and November 2015, interviewed 30 South African CEOs and further highlights that local CEOs believe government has failed to achieve key outcomes, which further impact on growth.

Just under half of the South African CEOs – 47% – think government has been effective in achieving a clearly understood, stable and effective tax system. Only 20% believe this should be a greater government priority, compared with a global average of 56%.

Speaking at a media briefing late last month, PwC Southern Africa CEO Dion Shango noted that the gap between the local and global average indicated that the country had a sophisticated, well-run, well-scrutinised tax system compared with other jurisdictions.

“This is quite an interesting response,” he said.

Meanwhile, 100% of local CEOs feel government has been ineffective in achieving high levels of employment, while 87% believe government should prioritise a skilled, educated and adaptable workforce.

The survey, subtitled ‘Redefining business success in a changing world’ also outlines that skills remain the most significant business threat, with 90% agreeing that this is a major concern, compared with a global average of 72%.

Eighty per cent of local CEOs are also worried about increasing bribery and corruption.

However, business recognises that it has a role to play in delivering better economic growth, with 80% of local CEOs believing they could help deliver a skilled workforce and 60% prioritising workforce diversity and inclusiveness, compared with the global average of 75% and 35% respectively.

Meanwhile, 40% of local CEOs believe adequate physical and digital infrastructure is a national priority to society, while 43% believe it should also be a government priority.

Sixty per cent feel government has failed in rolling out adequate physical and digital infrastructure to date, but only 27% of CEOs believe business could play a role in improving this.

Only 20% of South African CEOs expect global economic growth to improve in the year ahead, down from 29% last year. This is close to the global average of 27%.

The survey finds that China’s economic rebalancing, the drop in the crude oil price and geopolitical security concerns are the biggest factors impacting on the overall increase in uncertainty.

Significantly, only 35% of global CEOs are very confident of their own companies’ growth in the coming year.

On a positive note, 57% of South African CEOs expect to see an increase in headcount in the next 12 months, while 20% are planning to cut their workforce this year, as 67% of local CEOs plan to implement a cost-reduction initiative. Further, 67% are planning to enter into a new strategic alliance or joint venture.

“It is also positive to note that 60% of local CEOs plan to focus on building a pipeline of leaders for tomorrow, suggesting business leaders’ recognition of the wider skills the next generation of CEOs will need to tackle a more complex environment encompassing technology, wider threats and expectations of stakeholders for their organisations,” Shango added.