Despite global upheavals, Tanzanian business leaders are optimistic about local economic growth, with 81% anticipating improvements in the next year. However, caution persists regarding inflation and geopolitical risks, with many CEOs focusing on innovation and sustainability to drive long-term growth.
Tanzanian CEOs exhibit strong confidence in the local economy amid global uncertainties. According to PwC’s 28th Annual Global CEO Survey: Tanzania Perspective, 81% of business leaders anticipate an improvement in the local economy over the next year. Zainab Msimbe, PwC Tanzania’s Country Senior Partner, emphasized that CEOs are actively rethinking strategies for sustainable growth instead of just reacting to challenges.
Although the local economic outlook is positive, CEOs maintain caution regarding the global economic landscape. The report indicates that 59% of CEOs foresee an improvement in global economic growth; however, inflation pressures and market instability remain concerns. Moreover, geopolitical conflicts are increasingly affecting 31% of CEOs, up from 24% last year, with both inflation and cyber risks posing threats to 28% of leaders.
REPOA executive director Donald Mmari pointed out that even with high business confidence, external factors present ongoing challenges. He noted that Tanzanian CEOs may feel exposed to the spillover effects of geopolitical and regional conflicts that could disrupt trade and supply chains.
To stay competitive, many CEOs are focused on reinventing their business models. The report shows that 53% of CEOs believe their firms will be viable for over ten years, driven by strategic decision-making, product demand, and technology adoption. Additionally, 85% of CEOs report generating most of their revenue from core business units, with 55% having increased market share in five years.
The survey indicates a trend towards diversification, with 30% of CEOs expanding into insurance, 20% into consumer markets, and 17% into technology sectors. Paul Makanza, former CTI chairman, noted the proactive adjustments CEOs are making to meet market demands and emphasized their cautious yet resourceful approach.
Artificial intelligence (AI) is central to business strategies in Tanzania, with 52% of CEOs expecting AI to enhance profitability and 45% planning to integrate it into key business processes. Vodacom Tanzania managing director Philip Besiimire stated that investments in GenAI have led to increased profits and enhanced operational efficiency.
Transparency and long-term strategy are prioritized by 81% of CEOs in decision-making. Many are reevaluating their perspectives to capitalize on critical opportunities before making operational or financial changes. On sustainability, many CEOs are investing in climate-friendly initiatives, with 32% reporting revenue increases from such efforts.
Challenges remain, including financial constraints and regulatory hurdles. Ms. Msimbe noted that while global companies benefit from climate-friendly investments, Tanzanian firms face hurdles that restrict their ability to adopt sustainable strategies. Mixed responses about climate-friendly investments show both cost reduction and increased expenses, indicating varied experiences in the financial impact of sustainability efforts.
As Tanzania approaches its 2035 economic goals, businesses must navigate technological advancements, geopolitical shifts, and sustainability challenges to ensure growth and resilience in a changing landscape.
Tanzanian CEOs display optimism about the local economy, with a strong focus on sustainable growth and adaptability in the face of global uncertainties. However, they remain wary of external influences, particularly geopolitical conflicts and inflationary pressures. The emphasis on innovation, AI integration, and sustainable practices reflects a progressive approach to overcoming challenges and maintaining competitiveness in a changing economic environment.
Original Source: www.thecitizen.co.tz
