Dar es Salaam. CEOs in Tanzania believe that business growth in the next three years will be “modest” due to some unresolved challenges, The Citizen has learnt.

This was revealed yesterday during the unveiling of an East African CEO outlook covering Tanzania, Kenya, Uganda and Rwanda.

At regional level, according to the report, 92 per cent of East African CEOs are “very confident” about their companies’ growth prospects in the next three years.

“This position on the growth of our businesses can be attributed to a practical appreciation of the challenges impeding businesses even as they project modest growth,” warned KPMG Tanzania partner Vincent Onjala.

They include threats such as emerging technology, operational risks and policy unpredictability.

Mr Onjala said advances in technology have been swift, and some companies were unable to keep up.

Going by the findings, only one in ten Tanzanian CEOs reported being prepared for a cyber attack, although half are positive that they are able to contain the impact of an attack on strategic operations. Kenyan CEOs are more confident, as seven in ten believe they can contain the impact of an attack on strategic operations. Ugandan CEOs, on the other hand, are slightly less confident at two in ten.

“But the good thing is that CEOs in Tanzania believe that digital transformation is going to be critical. They are now taking it as a personal agenda for them to transform their businesses,” Mr Onjala told The Citizen.

KPMG Tanzania managing partner Salim Bashir said CEOs believe that 2018 would be a tough year, but the situation would change for the better in the near future, enabling them to make more money, create jobs and pay more tax.

“CEOs believe that it won’t be plain sailing due to some changes in regulations and directives, but they are positive that performance will improve in the future, as they have started to adapt to new business environments,” he said.

CEOs are also banking their hopes on heavy investment by the government in infrastructure as well as a nationwide crackdown on corruption, which they hope will create a level playing field.

According to KPMG senior financial analyst Ravi Shah, CEOs have called for clarity of rules and regulations to show that the situation is really improving,

“This will also prompt CEOs to see the need for businesses to transform and adapt, make necessary investments that allow them to strengthen their offerings and solidify their market position while remaining agile as they do so,” he told The Citizen.

Energy and Water Utilities Regulatory Authority (Ewura) gas distribution manager Thobias Rwelamila said changes in policies were aimed at improving the business climate.

“Policy reforms are inevitable if we are to align ourselves with whatever is happening globally,” he said.

“This is just a transition period. CEOs will in the near future have reason to smile due to heavy investment done by the government in infrastructure as well as efforts to revive Air Tanzania Company Limited.”

Source: The Citizen