Captains of industry drive solutions thinking dialogue around improving the business landscape

Amidst a pro-investment climate, the diverse business landscape in Tanzania is rapidly evolving with a mix of traditional and modern industries and a growing number of small and medium-sized enterprises. Under directive from Her Excellency President Samia Suluhu Hassan, the Government has made boosting investor confidence a key priority and continues to make efforts to create a predictable operating environment where businesses can thrive. As a result, the country has seen increased activity within various diplomatic missions bringing in potential investors and policy reforms aimed at supporting Private Sector growth and contribution to sustainable development.

While changes in the investment climate are acknowledged, captains of industry believe their impact on business development, particularly Small and Medium-sized Enterprises (SMEs), can be accelerated. Sharing leadership reflections on business in Tanzania, members of the CEO Roundtable of Tanzania (CEOrt) discussed the importance of skilled talent, sustainable tax systems and making the most of available opportunities in leveraging the booming business sector. This took place during one of the forum’s monthly engagements for members which facilitate dialogue on issues critical to Tanzania’s sustainable development. Membership within the CEOrt includes CEOs from over 200 leading companies in Tanzania, cutting across multiple sectors of the economy to enhance impact in leadership and the country’s growth. Sitting on the panel at the February meeting were Mr. Tournabenne Mnyuku - CEO at Kitivo Investment Company Limited, Ms. Elizabeth Swai - CEO at AKM Glitters Company Limited, Mr. Taha Jiwaji - Founder and CEO of Beem, and CEOrt Executive Director Ms. Santina Majengo Benson who moderated the discussion.

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Skills and capacity building are critical for economic development as they enhance an organisation’s innovation and quality standards. And yet, skills gaps remain a pressing concern for the majority of employers in Tanzania. Outlining areas to prioritise in order to stimulate SME growth, Mr. Mnyuku stressed the need to have more practical and modern approaches to skilling new job entrants, to enable employers to benefit from having a capable workforce. Although his remarks were aligned with helping budding entrepreneurs who often have to seek fresh graduates as a more affordable resourcing option, the same is true for big corporations that also experience inadequacies in the quality of workforce skills.?

The Private Sector is committed to addressing these systemic problems, but it will take concerted efforts to get there. Contributing to the discussion on how collaboration can offer solutions to building the right skills, Prof. Bernadeta Killian -? Deputy Vice Chancellor (Research) at the University of Dar es Salaam (UDSM) called for the business community to work closely with the learning institution. UDSM has a rich history of over 60 years and is undergoing a transformation that allows room for closer cooperation with the Private Sector. As mentioned by Prof. Killian, UDSM has the highest number of PhD concentrations in the region across various disciplines and is therefore a good source of expertise. There is potential for impactful research to spur innovation and joint programs with companies to improve the talent pool for employers.?

Raising a question on what more can be done in this regard, Mr. Kalpesh Mehta - Managing Director of Oryx Energies, challenged business leaders to be more solutions thinking when it comes to addressing known problems. Additional input came from Mr. Alimiya Sheikh Osman Munge - CEO of Faru Graphite Corporation Limited, who commended UDSM for adapting to global market forces and changing their framework accordingly, but spoke of the necessity of addressing skills at more foundational levels, before young people enter universities. Job shadowing can be one of the ways businesses facilitate how young people learn, as pointed out by Mr. Jiwaji. The skills gap may also apply amongst entrepreneurs, and Ms. Swai reminded members of the value of grooming both technical and business skills - where technical skills assist in running the day to day operations, it is business skills that are crucial for implementing growth strategies.

Another key aspect of improving the business landscape and encouraging SME growth is establishing sustainable tax collection systems. Young entrepreneurs may be averse to engaging with tax authorities, but viewing regulators as supporters of their growth can remedy that. It is important to have an understanding of compliance requirements, as that will help business owners participate in policy reviews, own the impact on their respective businesses, and possibly influence future reforms.?

As an enabler of value creation and accelerated growth, technology poses a great opportunity for entrepreneurs and the business environment to prosper. A fear of technology and the inability to think of technology from a strategic perspective may hinder us from capitalising on our massive population dividends. Once again, the significance of skills in aiding development is evident. Further opportunities are provided through the many international forums that enable businesses to build connections, access financial support, and learn from multiple industry players. One example that was shared was the upcoming AGRF 2023, Africa’s Food Systems Forum that will be hosted in Tanzania later this year. This is the first time the summit will be held in the country, and it is expected to highlight investment opportunities while bringing together global and local voices from diverse sectors. It is an avenue for startups to explore the growth opportunities that exist, and for businesses to harness the benefits that conferences of this magnitude can bring.

The Private Sector has a substantial role to play in driving Tanzania’s development, therefore? policies that encourage growth are necessary, as well as engagement between the Public and Private sectors to ensure the effective formulation of such policies. A sustainable and prosperous future for the country is possible. The CEOrt is committed to facilitating continued dialogue to achieve this, and sharing actionable suggestions on supporting Tanzania’s socio-economic development aspirations where investment is concerned.