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.

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 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.