South Africa's Businesses Confront Slowed Growth and AI Value Gap

New research from the Oliver Wyman Forum and the New York Stock Exchange finds that South African chief financial officers are grappling with a widening gap between AI investment and measurable business value. While 89% of surveyed CFOs are increasing AI use in finance, only 6% say AI has become the most significant driver of realised value, highlighting a leadership challenge to translate digital spending into tangible outcomes. The study also notes a shift in the CFO role toward overseeing enterprise transformation in a low‑growth environment.

At the same time, Woolworths Holdings, South Africa's leading retailer, warned that profit growth will be modest after a tougher second half of the fiscal year. Higher fuel prices, inflation, interest‑rate hikes and the ripple effects of the Middle‑East conflict have pressured consumers in South Africa, Australia and New Zealand, slowing sales momentum and eroding discretionary spending. The company projects earnings per share growth of only 2.5%–7.5% for the year, reflecting the broader economic headwinds facing South African businesses.