Tanzanian business leaders show optimism about local economic growth despite global uncertainties, with 81% expecting improvement in the next year. However, caution remains regarding inflationary pressures and geopolitical conflicts. CEOs are adopting new strategies and innovations, with a significant focus on AI and sustainability, reflecting adaptability in a challenging environment.
Business leaders in Tanzania demonstrate a positive outlook on the local economy amidst significant global uncertainties, inflation concerns, and cyber threats. According to PwC’s 28th Annual Global CEO Survey: Tanzania Perspective, an impressive 81 percent of CEOs foresee an improvement in the local economy within the next year, showcasing resilience and adaptability among businesses.
During the report’s launch in Dar es Salaam, Zainab Msimbe, PwC Tanzania Country Senior Partner, emphasized the proactive strategies Tanzanian leaders are adopting for sustainable growth. She stated, “Tanzanian CEOs are no longer just reacting to challenges; they are actively rethinking their strategies and reshaping their businesses to drive long-term growth.”
Despite the optimistic local economic outlook, Tanzanian CEOs maintain a cautious stance towards the global economic landscape, with 59 percent anticipating improvements in global economic growth. Concerns regarding inflationary pressures and market volatility persist, alongside heightened exposure to geopolitical conflicts, which rose from 24 percent to 31 percent compared to last year.
Donald Mmari, executive director of REPOA, pointed out the vulnerabilities faced by business leaders despite their confidence. He noted, “Despite their optimistic outlook on the local economy, Tanzanian CEOs may feel vulnerable to spillovers from geopolitical and regional conflicts that could disrupt their trade and supply chains.”
To navigate these challenges, many CEOs are reinventing their business models for competitiveness. The report indicates that 53 percent of business leaders believe in their companies’ viability for over a decade, largely due to strong decision-making, increased product demand, and technology adoption. Interestingly, 85 percent derive most revenue from core business units, while 55 percent have experienced market share growth, expanding into sectors like insurance, consumer markets, and technology.
Paul Makanza, former chairman of the Confederation of Tanzania Industries, remarked on the proactive approaches CEOs have taken. “A significant proportion of CEOs have taken action in recent years to adjust their business models due to the pressure to change. Many are reallocating resources to strengthen their businesses, but at the same time, they are being cautious in their approach,” he emphasized.
Artificial intelligence and digital transformation are becoming integral to business operations in Tanzania. The report reveals that 52 percent of CEOs anticipate AI will enhance profitability in the coming year, while 45 percent expect AI integration into core business processes, indicating a shift toward automation and operational efficiency.
Vodacom Tanzania’s managing director, Philip Besiimire, highlighted the positive impact of AI investments. “Business leaders indicate that investments in GenAI have led to increased profits and greater efficiency in work processes,” he stated, acknowledging the trend of AI integration across companies.
Furthermore, the survey reveals that 81 percent of Tanzanian CEOs prioritize transparency and long-term strategy in their major decisions, integrating diverse perspectives to identify critical opportunities before implementing changes.
On sustainability, many CEOs are investing in climate-conscious initiatives. While 32 percent report increased revenue from such efforts, challenges persist due to financing, regulatory complexities, and limited external demand. Ms. Msimbe explained, “While companies globally are seeing benefits from climate-friendly investments, Tanzanian businesses face regulatory and financial hurdles that limit their ability to implement sustainable strategies.”
Though 22 percent of CEOs report lower operational costs from climate-friendly investments, another 22 percent experienced increased costs, highlighting the mixed sentiment in the sector. The report emphasizes that as Tanzania moves toward 2035, the economic future hinges on businesses’ ability to tackle technological, geopolitical, and sustainability challenges effectively.
In conclusion, Tanzanian business leaders exhibit a robust confidence in the local economy while maintaining caution regarding global economic conditions. They are actively adapting strategies to ensure sustainable growth, embracing innovation, and incorporating technology into their operations. Despite challenges related to geopolitical risks and sustainability hurdles, there is a collective determination among CEOs to navigate the complexities of the current economic landscape and secure long-term viability for their businesses.
Original Source: www.thecitizen.co.tz
