In a rapidly evolving global economy, business leaders in Tanzania are expressing a unique blend of optimism and caution. The latest PwC CEO Survey reveals a confidence paradox, while executives foresee strong economic growth, many are concerned about the pace of their own digital and organisational transformation.
In this exclusive interview with The Citizen, we sit down with Zainab Salome Msimbe, Country Senior Partner, PwC Tanzania, to unpack the survey’s findings, exploring everything from the impact of artificial intelligence and the persistent skills gap to geopolitical tensions.
Explain to us what the CEO Survey is and its importance for Tanzania.
The CEO Survey is our global thought leadership study that PwC has run since 1997. It captures the perspectives of business leaders across the world on the forces shaping the economy, industries, and the future of work.
In the context of Tanzania, the survey results this year are particularly insightful. They show a strong sense of economic confidence among Tanzanian CEOs, but also highlight critical challenges, especially around transformation, skills, organisational readiness and the adoption of emerging technologies like AI. Overall, the survey gives us a clear view of where we stand as a business community and what we need to prioritise as we move forward.
What’s the drive behind the CEOs’ high participation in these surveys?
This year we saw incredible engagement from CEOs, and I think it’s because the themes in the survey really connect with what business leaders are dealing with right now, things like AI, skills, business reinvention, and geopolitics.
These aren’t abstract ideas for them; they’re part of their day-to-day decision-making. Increasingly, we see that CEOs recognise that this survey influences dialogues at national, regional and global levels, informs policy discussions and gives the private sector a unified voice.
Let’s explore the confidence paradox. What does this mean?
The confidence paradox means this: our CEOs feel very positive about Tanzania’s economic prospects, but they acknowledge a lag in transformation. For example, 65 percent of the CEOs anticipate strong revenue growth over the next three years.
This tells us that they see real opportunity in the local and regional markets and have confidence in the resilience of Tanzania’s economy. We also saw that 82 percent are optimistic about the development of the local market, which is much higher than the global average of 55 percent.
But here is the other side of the paradox: over 50 percent are worried that they are not transforming fast enough, especially when it comes to technology and AI. Only 36 percent have a clear AI strategy, and just 19 percent believe that their investments are sufficient. Added to that, geopolitical and economic volatility affects business stability too. So yes, confidence is high, but readiness needs swift progression.
What fuels CEOs’ optimism about Tanzania’s economic outlook?
The CEOs’ optimism is anchored in Tanzania’s solid macroeconomic fundamentals. First, growth expectations remain strong. GDP is projected to remain between 6.1 and 6.2 percent in 2026. Although we recognise that to reach a $1 trillion economy by 2050 we need to accelerate towards double-digit growth, the country’s ability to maintain macroeconomic stability gives CEOs confidence in sustained domestic expansion.
Second, inflation has remained stable, projected between 3 and 5 percent. Combined with a strong domestic consumption base, this means local demand continues to hold up even when the global market slows down.
We are also seeing continued investment in infrastructure and expanding market opportunities. About 46 percent of CEOs are exploring new geographic markets, notably within East Africa, especially Kenya and Uganda, which shows regional trade dynamics are strengthening. So yes, the optimism is there, but the CEOs acknowledge that they must adapt and transform for competitive viability in the coming decade.
Your data reveals a shift in the leading threats. What is causing this?
We are certainly seeing a shift in the threat landscape. The number one concern raised by the CEOs in Tanzania is skills availability, with 27 percent of those surveyed citing this as a concern. This is because as organisations push forward with digital transformation and AI adoption, the demand for new skills is rising.
Geopolitical conflict follows at 22 percent, reflecting the increasing uncertainty CEOs are navigating in regional and global markets. Interestingly, only 18 percent of the CEOs now cite cyber risk as a key threat. This does not mean that the risk has disappeared; rather, it reflects that CEOs currently perceive other issues as more immediate priorities.
Addressing skills is essential. Despite Tanzania being a youthful nation, why does talent remain a challenge?
That’s a great question, and it’s something many people often ask. The reality is that although we have many young people entering the workforce every year, their skills don’t always align with what the market demands.
Our youthful population brings huge potential, but there is still a lack of the specialised skills required for today’s economy. With the pace of digital transformation, the demand for advanced technological skills has grown sharply. CEOs are particularly concerned about shortages in tech and digital skills, data analytics, and AI skills.
Government initiatives like the Samia Scholarship, especially its extension into data science and artificial intelligence, are an important step in closing the technology skills gap and supporting the country’s transformation agenda under Dira 2050.
But we need greater investment in specialised science and engineering programmes, as well as more opportunities for students to gain exposure and training abroad in high-demand fields.
At PwC, this challenge is very close to our purpose: to build trust and help solve important problems. We are already engaging with higher-learning institutions by sharing practical experience and insights. Our goal is to ensure that what students learn in the classroom is much more closely aligned with what the market expects.
Geopolitical tensions feature prominently. How do these affect Tanzanian businesses?
Geopolitical tensions may feel distant at times, but their impact on Tanzanian business is quite tangible. We are seeing this in several ways. About 25 percent of CEOs report a slowdown in large-scale investments as a result of international tensions. When uncertainty rises globally, capital becomes more cautious, and that ripples into local decision-making.
We’re also experiencing disruptions in supply chains, particularly around logistics and port operations, which affects both costs and reliability. Another area where the impact is clear is compliance and regulatory pressures. When geopolitical tensions escalate, companies must adjust their compliance frameworks to ensure they don’t violate international supply chain regulations.
In tourism, for example, geopolitical disruptions not only weaken demand, but they also raise the bar for international travel regulations and safety certifications. These pressures are prompting CEOs to take a conservative approach when it comes to investments.
AI is a focal point this year. Where do Tanzania’s CEOs stand on AI preparedness?
What we are seeing is an interesting contrast. On the one hand, CEOs genuinely feel ready, about 70 percent say they are prepared for AI adoption. But when you look at the practical indicators of readiness, the picture becomes a bit different.
Only 36 percent possess articulate AI strategies, and just 19 percent consider their investment adequate. Furthermore, more than half, 57 percent, say AI hasn’t yet had a significant impact on their business.
In terms of actual deployment, only 12 percent are using AI for strategic planning, which is one of the areas where AI can create the most value.
That said, we’re seeing promising national momentum. Tanzania completed its National AI Readiness Assessment with UNESCO in June 2025, which marks real progress toward aligning policy, building ethical frameworks, and developing a national AI strategy. This broader readiness creates an enabling environment for CEOs and gives companies a strong foundation to scale AI effectively.
Partnerships and geographic expansion are trending. What stands out?
What really stands out is how CEOs are thinking about partnerships and expansion as key levers for transformation. We’re seeing that 25 percent of CEOs aim to prioritise technology partnerships. This is quite significant because it demonstrates that CEOs in Tanzania are not just talking about transformation, they are looking for collaborative ways to accelerate it.
Rather than building every capability in-house, they are partnering with tech firms. We also see strong interest in regional expansion. About 46 percent are exploring new regional markets within East Africa, with Kenya and Uganda being the top destinations.
What is your single biggest takeaway from this year’s CEO Survey?
My biggest takeaway is that CEOs in Tanzania are genuinely optimistic, they see growth, and they’re confident about the direction of the country. But what really stands out is that optimism on its own won’t deliver the next level of competitive advantage.
The real differentiator will be how fast we execute. That means building AI capability, closing the skills gap, encouraging innovation, and strengthening organisational agility. If we don’t keep pace with how quickly the world is changing, we risk missing out on value. So for me, the takeaway is simple: optimism gives us momentum, but progress will come from action.
What message would you impart to CEOs?
My message to CEOs is straightforward: Tanzania has a lot going for it, and the confidence reflected in the survey is very encouraging. But this is also a moment where decisive leadership really matters.
The environment is evolving faster than ever, whether it’s technology, skills, customer expectations, or the broad operating landscape. How the business leaders respond will define who leads in the next decade. So, CEOs should make sure their organisations are ready for what’s ahead. That means investing in the right capabilities, embracing new ways of working, and staying agile. The opportunity is here, but it is up to us to move with intention and pace.
