Economic instability, a heavier tax burden and shifting customer behavior emerged as the trends weighing most on family owned businesses in Africa, according to PwC’s Africa Family Business Survey 2025.

The study found the operating climate had grown tougher, with two thirds of respondents saying inflation and supply chain disruption had hit them meaningfully over the past year, a higher share than the 58 per cent recorded globally.

Close to half flagged tax pressures, well above the 35 per cent global figure, while 53 per cent named changing consumer expectations as a strain. PwC’s West Market family business lead, Edward Gomado, said mounting tax complexity and outside uncertainty were redrawing the business map, yet discipline and long horizons continued to give African firms an edge.

Governments, the report observed, were under growing strain to raise revenue at home as borrowing costs climbed, prompting reforms to widen the tax net, tighten enforcement and digitize collection. It pointed to Nigeria’s recent overhaul, revenue drives in South Africa and Kenya and rollbacks in Ghana, noting that in Nigeria undistributed profits could now be treated as distributed and taxed.

PwC advised family firms to re-examine their partners and operating models, sharpen governance and decision rights, and deploy capital more deliberately. Africa family business lead Esiri Agbeyi said the sector had laid solid foundations and should now scale its sense of purpose and put reputation and patient capital to work as engines of growth.