Tanzanian CEOs exhibit optimism for local economic improvement with 81% expecting growth despite global uncertainties. Many are cautious of inflation and geopolitical tensions, leading to strategic adaptation and investment in innovation. AI and sustainability initiatives are central to their business strategies, though challenges remain in financing and regulatory environments.
Despite facing global economic uncertainties, business leaders in Tanzania maintain an optimistic outlook regarding the local economy. According to PwC’s 28th Annual Global CEO Survey, 81 percent of CEOs predict improvement in the economy within the next year, showcasing remarkable resilience among Tanzanian businesses. However, they remain cautious due to inflationary pressures and market instability on a global scale.
During the report’s launch in Dar es Salaam, PwC Tanzania’s Country Senior Partner Zainab Msimbe emphasized the proactive mindset of Tanzanian CEOs. “Tanzanian CEOs are no longer just reacting to challenges; they are actively rethinking their strategies and reshaping their businesses to drive long-term growth,” she remarked. This reflects a leadership community eager to thrive, not merely survive.
Caution persists as 59 percent of CEOs anticipate an improvement in global economic growth, although 31 percent report heightened exposure to geopolitical conflicts in the region, an uptick from 24 percent last year. Additionally, inflation and cyber risks are recognized as critical threats by 28 percent of the business leaders surveyed. REPOA’s executive director Donald Mmari added that business confidence remains high alongside vulnerability to external disruptions.
The need for adaptability influences many CEOs to focus on reinventing their business models for competitiveness. The survey indicates that 53 percent believe their companies will remain economically viable for over a decade, driven by strong decision-making and rising product demand. Notably, 85 percent of CEOs derive revenue primarily from core business units, with 55 percent expanding market share, notably in sectors like insurance, consumer markets, and technology.
Former CTI chairman Paul Makanza acknowledged the proactive adjustments made by CEOs to their business models amidst pressures for change. He stated, “A significant proportion of CEOs have taken action in recent years to adjust their business models…” indicating a strategic allocation of resources, coupled with caution.
Artificial intelligence (AI) and digital transformation play pivotal roles in Tanzanian business strategies. The report reveals that 52 percent of CEOs expect AI to enhance profitability, while 45 percent intend to integrate it into essential processes, signifying a transition towards increased automation and operational efficiency. Vodacom Tanzania’s managing director Philip Besiimire noted the positive impact of AI investments on profitability and efficiency.
Moreover, 81 percent of Tanzanian CEOs prioritize transparency and long-term planning in business decisions, incorporating diverse perspectives before financial or operational changes. On sustainability, 32 percent report increased revenue from climate-friendly initiatives despite facing challenges such as regulatory issues and limited financing.
Ms. Msimbe acknowledged the hurdles hindering climate-conscious strategies, stating, “While companies globally are seeing benefits from climate-friendly investments, Tanzanian businesses face regulatory and financial hurdles…” Additionally, 22 percent of CEOs say climate-friendly investments have reduced operational costs, while an equal percentage believes they have increased costs, highlighting a mixed sentiment towards sustainability efforts.
As Tanzania approaches 2035, the evolving economic landscape will heavily rely on businesses’ ability to navigate technological advancements, geopolitical shifts, and sustainability concerns.
In conclusion, Tanzanian business leaders exhibit an optimistic outlook for the local economy while remaining wary of global uncertainties. Their proactive approach towards innovation, adaptation to market dynamics, and integration of digital technologies such as AI reflect resilience in navigating challenges. Although hurdles exist, particularly in financing and regulatory compliance for sustainable initiatives, the commitment to sustainability and strategic decision-making positions Tanzanian companies favorably for future growth.
Original Source: www.thecitizen.co.tz
