CEOs offer proposals to spur SME growth

Dar es Salaam. Business leaders have put forward seven recommendations to improve the business landscape and bolster the growth of small and medium-sized enterprises (SMEs).

The proposals offered during the CEO Roundtable of Tanzania’s monthly engagement meeting in Dar es Salaam on Saturday include embracing talent, a sustainable tax system, technology and policies that encourage growth and engagement between the public and private sector.

Others are business leaders prioritising solutions to known problems, as well as making the most of available opportunities in leveraging the booming business sector.

Sharing leadership reflections on business in Tanzania, CEOrt members said while the government’s pro-business approach is acknowledged, its impact on business development, particularly SMEs, could be accelerated if the recommendations will be worked on.

Kitivo Investment Company Limited chief executive Tournabenne Mnyuku said skills and capacity building were critical for economic development as they enhance an organisation’s innovation and quality standards.

“Skills gaps remain a pressing concern for the majority of employers in Tanzania,” he said.

Mr Mnyuku stressed the need to have more practical and modern approaches to skilling new job entrants so that employers could benefit from 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), urged 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.

Prof Killian said UDSM has the highest number of PhD holders 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 programmes with companies to improve the talent pool for employers,” she said.

On what more could be done in this regard, Oryx Energies managing director Kalpesh Mehta challenged business leaders to be more solution-thinking when it comes to addressing known problems.

Faru Graphite Corporation Limited CEO Alimiya Munge stressed the need to address skills at more foundational levels before young people enter universities.

Beem founder and CEO Taha Jiwaji said: “Job shadowing can be one of the ways businesses facilitate how young people learn.”

Industry captains said the skills gap may also apply amongst entrepreneurs.

AKM Glitters Company Limited CEO Elizabeth Swai reminded members of the value of grooming both technical and business skills.

She said that where technical skills assist in running the day to day operations, it is business skills that are crucial for implementing growth strategies.

CEOrt executive director Santina Benson said the country needs sustainable tax collection systems to improve the business landscape that will encourage SME growth.

Young entrepreneurs, she expounded, 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,” said Ms Benson.

Technology on the other hand, as an enabler of value creation and accelerated growth, 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 Tanzania from capitalising on its massive population dividends,” she cautioned.

Once again, the significance of skills in aiding development is evident.

The private sector has a substantial role to play in driving Tanzania’s development.

However, Ms Benson said 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,” she noted