A Call for Enhanced Partnerships to Drive Africa’s Economic Recovery

Over the past few years, the world has experienced monumental events that have shaped recent history. From food insecurities and overwhelmed healthcare systems, to increased vulnerabilities in disadvantaged groups in communities, the impacts on socio-economic growth have been significant. In the midst of efforts to build back better, sustainability stands out as a vital component of the resilience that is driving global recovery.?

This week, the CEO Roundtable of Tanzania (CEOrt) held a roundtable discussion with members to engage on the theme “Driving Africa’s Economic Recovery”. This meeting was part of the organization’s monthly engagements to facilitate dialogue on issues critical to Tanzania’s sustainable development. With CEOs from over 180 leading companies in Tanzania, the CEOrt is a strong representation of the country’s Private Sector, cutting across multiple sectors of the economy to enhance impact in leadership and the country’s sustainable development. As keynote speaker at the members’ meeting, Dr. Patricia Laverley - Country Representative, African Development Bank (AfDB) Tanzania - highlighted the importance of the Private Sector in the development agenda. About 70% of Africa’s output and 90% of Africa’s employment is generated by this sector, which also accounts for about 70% of Africa’s investment. In Tanzania, the Private Sector is essential to economic development and efforts to maintain the country’s middle-income status. Collectively, businesses as indicated by members of the CEOrt contribute to Tanzania’s economy through tax collection, employment, capacity building, technology transfer and skills development. It is evident that collaboration between the Private Sector and? Development Partners can serve as a catalyst in championing inclusive and sustainable growth towards attaining Tanzania Development Vision 2025 (TDV 2025).

The AfDB’s engagement in Tanzania is currently guided by the Country Strategy Paper (CSP) for Tanzania 2021-2025, which is aligned with TDV 2025 and aims to support the country’s transformation to a competitive and inclusive economy around two priority areas - sustainable infrastructure and an improved business environment for job creation. The Bank’s portfolio in Tanzania also has a strong focus on infrastructure, in the sectors of transport, energy and water supply and sanitation, with a? staunch commitment to renewable energies. One of the points raised by Sumaria Group Managing Director and CEO, Jayesh Shah at the meeting was the question of funding the? East African Crude Oil Pipeline (EACOP). This is a project that evokes both support of the value it will generate and valid concerns from the public regarding its environmental risks.?

One of the five operational priorities of the AfDB is its strategy for agricultural transformation in Africa, termed Feed Africa. Speaking at the engagement, Tanzania Agricultural Development Bank Managing Director, Mr. Frank Nyabundege, brought up the current food crisis that has been amplified by the Russia-Ukraine conflict, and the importance of ensuring AfDB’s relief efforts reach Tanzanians as well. Dr. Laverley had mentioned that the Bank’s Tanzania portfolio includes lines of credit to the commercial banks to improve private sector access to finance. Overall, the institute lends out approximately USD 7 billion annually, as stated when answering a question from Founder and Executive Chairman of the MAC Group Ltd, Mr. Yogesh Manek. Interested parties are encouraged to seek more information through the AfDB website, and thus play an active role in driving a solutions-based approach to address some of the challenges that impede transformational growth.

In her keynote address, Dr. Laverley explained that the Bank is currently implementing a pilot Franchising Accelerator Project in Tanzania, aiming to support the Government in drafting a franchise policy and integrating franchising in other trade-related policies, but also nurturing indigenous Small and Medium Enterprises (SMEs) and aggregated micro-operators’ transformation into franchise brands. Another objective is to incubate the Franchise Association of Tanzania (FATA) to become the industry self-regulatory mechanism. Managing Director of Warioba Ventures, Mr. Martin Warioba, spoke on behalf of the technology industry and highlighted the need for AfDB to support technological SMEs. We can all agree that equipping people with science and technology-related skills will breed the innovation we need to continue fostering growth.?

Driving Africa’s economic recovery is a multifaceted effort that calls for joint collaboration across sectors, industries and markets. The role that the Private Sector can play in stimulating growth is substantial. Business leaders are motivated by the Government’s support and commitment to improving the investment climate in Tanzania. The recently tabled 2022/2023 national budget is also geared towards “accelerating economic recovery and enhancing productive sectors for improved livelihood”. These productive sectors - agriculture, livestock, fisheries, energy, investment and trade - are the backbone of the prosperity we desire for our country. With priorities aligned among the various sectors and finance providers, we are well on our way to revive economic growth.

The AfDB is focused on propelling sustainable economic development and social progress through different initiatives, which include helping to build a strong healthcare defense system, unleashing the business potential of women by means of the Bank’s Affirmative Finance Action for Women in Africa (AFAWA), and looking into the feasibility of establishing Youth Entrepreneurship Investment Banks to provide financial and non-financial services to youth entrepreneurs across Africa. In line with this, the CEOrt remains committed to its purpose of promoting ethical leadership for growth and prosperity. Our focus on human capacity development is evidenced by the distinguished CEO Apprenticeship Programme - a leadership initiative that transforms C-suite executives into visionary leaders, under which we have committed to scaling up female participation over the next three years. Economic recovery may be a steep climb, but the view at the top is something to be inspired by and look forward to.