Tanzanian CEOs exhibit confidence in local economic growth despite global challenges. 81% foresee improvements, while concerns about inflation and geopolitical risks remain. The adoption of innovative strategies and AI is pivotal, yet sustainability and external barriers present ongoing challenges.
Business leaders in Tanzania express optimism regarding the local economy’s outlook despite prevailing global uncertainties, inflation concerns, and cybersecurity threats. The 28th Annual Global CEO Survey by PwC indicates that 81 percent of CEOs anticipate improvements in the local economy within the next year. This demonstrates resilience and adaptability within the Tanzanian business sector.
During the report launch in Dar es Salaam, Zainab Msimbe, PwC Tanzania Country Senior Partner, emphasized that Tanzanian CEOs are proactively rethinking their strategies for sustainable growth. This year’s survey highlights a leadership community dedicated to not just surviving but thriving amid global instabilities.
The study reveals that 59 percent of CEOs expect a rise in global economic growth; however, inflation and market instability continue to be significant concerns. Moreover, 31 percent of CEOs feel highly vulnerable to geopolitical conflicts, an increase from the previous year, citing concerns around inflation and cyber threats.
Donald Mmari, REPOA Executive Director, acknowledged that while there is considerable optimism, external factors pose continuing challenges for Tanzanian businesses. He noted that business leaders are cautious about potential spillovers from geopolitical conflicts that could disrupt trade and supply chains.
The report also indicates that 53 percent of CEOs in Tanzania foresee their companies remaining economically viable for over a decade, supported by strong decision-making, rising demand for services, and technological advancements. Notably, 85 percent of CEOs derive most of their revenue from core business areas, with 55 percent reporting market share growth in recent years, particularly in sectors like insurance and technology.
Former Confederation of Tanzania Industries Chairman, Paul Makanza, pointed out that business leaders are adopting a proactive stance in response to market demands, reallocating resources sensibly to enhance competitiveness.
Additionally, artificial intelligence and digital transformation are pivotal in business strategies. The survey found that 52 percent of CEOs expect AI to enhance profitability in the coming year. Investments in general AI are leading to improved efficiency in operations, as noted by Vodacom Tanzania’s managing director, Philip Besiimire.
Many CEOs are emphasizing sustainable practices, with 32 percent reporting revenue increases from climate-friendly initiatives. However, barriers remain, such as financing issues and regulatory challenges. Ms. Msimbe addressed these obstacles, highlighting that some companies experience operational downside rather than benefits
The report illustrates that as Tanzania approaches 2035, the evolving economic landscape will hinge on addressing technological advancements, geopolitical shifts, and sustainability concerns, highlighting the need for strategic adaptability in business.
In conclusion, Tanzanian business leaders exhibit a strong and optimistic outlook for the local economy, demonstrating resilience despite global challenges. The focus on innovative strategies, the integration of artificial intelligence, and a commitment to sustainability are crucial elements. Nevertheless, external factors such as geopolitical tensions and regulatory hurdles remain pressing concerns that businesses must navigate judiciously.
Original Source: www.thecitizen.co.tz
