By KT Reporter
Financial services leaders across Africa are entering 2026 with renewed optimism, focusing on artificial intelligence (AI), cybersecurity, regulatory resilience, and strategic growth, according to KPMG’s 2025 Global CEO Outlook.
The report highlights trends shaping the Banking, Capital Markets, and Insurance sectors across the continent. In Africa, economic uncertainty, volatile markets, and evolving regulatory frameworks have posed challenges for banks and insurers.
Yet, CEOs are increasingly confident in their growth prospects. In Uganda and the wider East African region, insurers are expanding into health, life, and specialty lines, including cyber and business interruption insurance, mirroring global trends in improved earnings and sector momentum.
AI adoption is accelerating across core operations, including underwriting, claims processing, onboarding, and cyber defence. Two-thirds of global insurance CEOs plan to allocate 10–20% of budgets to AI, and 67% expect measurable returns within one to three years—up from just 21% last year.
Workforce readiness remains a critical challenge, with African firms prioritizing AI upskilling to support sustainable growth. Cybersecurity is a major concern, with 83% of insurance CEOs citing cybercrime as the biggest barrier to growth. Regulatory compliance, particularly in ESG reporting, is also rising in importance, reflecting trends in European frameworks adopted across African markets.
Mark Danckwerts, Head of Insurance, KPMG One Africa, said: “Insurance leaders in Africa face a complex operating environment, but they are doing so from a position of growing confidence. AI presents enormous opportunities, but success depends on responsible adoption, workforce readiness, and strong cyber resilience.” For banks, AI is shaping strategic priorities.
Pierre Fourie, KPMG One Africa Head of Financial Services, emphasized that integrating AI into core processes, modernizing legacy IT systems, and managing cyber risks will define competitive advantage in Uganda and across the continent.
Mergers and acquisitions remain a key lever for growth, with African financial institutions increasingly pursuing strategic deals to strengthen innovation, customer experience, and market position.
KPMG concludes that African financial services are entering a transformative phase, where disciplined AI adoption, cybersecurity investment, ESG compliance, and strategic growth will determine the leaders in 2026 and beyond.
Local trends show Ugandan banks expanding into insurance distribution and digital services, and fintech innovators partnering with financial institutions to deepen access and inclusivity.
According to sector observers, Uganda’s financial ecosystem is evolving rapidly, propelled by a mix of innovation, regulatory support, and broader regional trends.
Leaders say disciplined transformation, anchored in technology adoption, trust, and robust risk management, will determine competitive advantage in 2026 and beyond.
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