Shortage of crucial skills a threat to growth, say CEOs

[BAK]

Shortage of crucial skills a threat to growth, say CEOs

Thursday, 30 June 2011 21:58

By Al-amani Mutarubukwa The Citizen Reporter Dar es Salaam. Unavailability of a skilled workforce in Tanzania is a threat to the growth of companies, a new survey says.About 85 per cent of chief executive officers (CEOs) interviewed by PriceWaterHouseCoopers (PWC) in a survey conducted last year observed that lack of key skills was a real threat to their growth. This rate is higher than the levels in other African countries and globally which are 72 and 56 per cent respectively, according to a draft report of the survey. It entailed 201 interviews with CEOs in sub-Saharan Africa in late 2010, among whom 20 were in Tanzania. However, only 55 per cent said that creating a skilled workforce is a government priority area. However, 80 per cent of the CEOs said they were planning to work with governments and education systems to improve skills in the talent pool, while 95 per cent were committed to creating and fostering a skilled workforce to improve national competitiveness. “The purpose of the annual CEO Survey is to appreciate factors that influence business leaders’ perception for growth – and to take the pulse of the African (and global) business environment,” said Mr Leonard Mususa, PWC country senior partner. He was launching the Tanzania perspectives of the report on Tuesday in Dar es Salaam. Survey respondents represented various economic sectors.The survey also sought to know whether younger workers and women were the solution to talent challenges. However, results showed that 85 per cent of CEOs felt giving incentives to younger workers differently from others would prompt them to stay and work for the companies. The report, titled ‘The Africa Business Agenda’ which is based on the survey results, will be published in July. The document indicates that because of economic policy threats in areas of uncertainty, exchange rate and inflation, companies were less confident of revenue prospects for the next three years. However, the majority of them (70 per cent) were confident of revenue prospects over the next 12 months. The number is higher than Africa’s and global levels.On the threats they are planning to mitigate, 50 per cent of interviewed local CEOs mentioned uncertainty. Another 25 per cent singled out interest rates while 30 per cent said they planned to tackle inflation. On how consumer behaviour is changing in Tanzania or the reason why they think it is such a threat, only 20 per cent said shifts in consumer behaviour were among threats they planned to mitigate.Other 29 said customer demand influenced strategies while 86 per cent said consumers will play a more active role in product and service development than before.However, all of them said they would implement changes in strategies as a response to long-term shifts in consumers’ focus towards price, value and mobile media.