Chief Executive Officers (CEOs) in Tanzania are optimistic of the future, foreseeing good economic growth in both the short and medium term for the region, but do recognise that there are threats to the region’s economic growth, with inflation and macroeconomic volatility ranking higher in the short term according to the latest report released by the PwC.
Dubbed “Winning today’s race while running tomorrow’s” the PwC’s 26th Annual Global CEO Survey1, polled 4,410 CEOs in 105 countries and territories in October and November 2022 (“Global CEOs”), including 71 respondents from Tanzania (CEOs).
According to the survey findings, 68% of CEOs in Tanzania share the pessimism of Global CEOs (73%) that the global economy will decline over the next 12 months.
However, the same percentage of Tanzania CEOs (68%) are optimistic about the prospects of domestic economic growth expecting Tanzania’s economy (i.e, GDP) to grow in the next 12 months; albeit not as optimistic as in the prior year survey (78%).
Mirroring this, Tanzania CEOs are very confident of their respective company’s prospects for revenue growth both in the next 12 months (54%) and the next three years (63%).
“This optimism is mirrored in a recent IMF press release2 which states that “the economy is benefitting from improvements in the business environment, but also expected to continue facing spillovers of the war in Ukraine in the near term”, and that “economic growth is projected at 5.2 percent in 2023” according to the latest PwC report.
The report also states that, “contingent on the implementation of the authorities’ structural reform agenda, including the business environment and governance, real GDP growth is projected to rebound to about 7 percent over the medium term, inflation is expected to return to the BoT’s target, and the current account deficit to moderate over the medium term as the global shocks subside and the authorities’ reforms start to pay off”.
Leave a Reply