Tanzania’s Business Leaders Maintain Optimism Despite Global Challenges

Tanzanian business leaders are optimistic about local economic growth amidst global uncertainties, with 81% expecting improvement in the next year. CEOs are cautious about inflation and geopolitical risks, with many investing in innovation and sustainable practices. Despite mixed sentiments about climate-friendly initiatives, resilience and a proactive approach characterize the business landscape in Tanzania today.

Business leaders in Tanzania exhibit a strong confidence regarding the country’s economic future, notwithstanding global uncertainties and prevailing inflation issues. According to the PwC’s 28th Annual Global CEO Survey: Tanzania Perspective, an impressive 81 percent of CEOs forecast an improvement in the local economy over the next year, indicating resilience and adaptability within Tanzanian businesses.

During the report unveiling in Dar es Salaam, PwC Tanzania Country Senior Partner, Zainab Msimbe, emphasized the proactive approach of Tanzanian CEOs, stating that they are no longer merely reacting to challenges but strategically reshaping their operations for sustainable growth. She remarked, “This year’s survey reveals a leadership community that is determined to not only survive but also thrive despite global uncertainties.”

Nevertheless, despite this optimistic local outlook, caution remains regarding the broader global economy. While 59 percent of CEOs anticipate an improvement, many maintain wariness regarding inflationary pressures and market instability. Furthermore, 31 percent feel susceptible to geopolitical conflicts affecting their trade and supply chains, a rise from 24 percent estimated last year.

REPOA Executive Director Donald Mmari pointed out that external challenges persist despite heightened business confidence. He stated, “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.”

The adaptability of local businesses is essential. The survey indicates 53 percent of CEOs are hopeful about their firms’ long-term economic viability, attributed to strategic decision-making and growing demand for products. Importantly, 55 percent reported increased market share over the past five years by exploring new sectors such as insurance, consumer markets, and technology.

Former Confederation of Tanzania Industries Chairman Paul Makanza commended the active adjustments made by business leaders in response to market pressures, noting many are reallocating resources for efficiency while maintaining a cautious approach. He affirmed, “A significant proportion of CEOs have taken action in recent years to adjust their business models due to the pressure to change.”

Moreover, Artificial Intelligence (AI) and digital transformation play pivotal roles in shaping business strategies, with 52 percent of CEOs expecting AI to enhance profitability. Vodacom Tanzania Managing Director Philip Besiimire noted that investments in Generative AI are already producing observable benefits: “Business leaders indicate that investments in GenAI have led to increased profits and greater efficiency in work processes.”

The survey also revealed a significant commitment among CEOs to transparency and long-term planning, with 81 percent prioritizing these values in decision-making, considering diverse perspectives to uncover opportunities. This aligns with a growing trend towards sustainability, as 32 percent reported increased revenue from climate-focused initiatives, despite facing financing and regulatory hurdles.

Ms. Msimbe expressed concern regarding the complexities hindering climate-friendly strategies, commenting, “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.” Furthermore, findings indicate a mixed reception for the financial implications of sustainability, with 22 percent reporting cost reductions, while an equal percentage cited rising costs associated with such investments.

As Tanzania approaches its 2035 vision, its economic future will depend largely on how businesses navigate technological advancements, global geopolitical shifts, and sustainability challenges.

In summary, Tanzanian business leaders remain optimistic about the local economy, reflecting a strong resilience against global challenges. While confidence is high, caution persists regarding global economic conditions and geopolitical risks. Many CEOs are actively reinventing their strategies while embracing innovation and sustainability. This adaptability will be crucial for the long-term viability and growth of Tanzanian businesses as they respond to both internal and external demands.

Original Source: www.thecitizen.co.tz