OTR outlines rationale for private sector engagement in state-owned enterprises
THE Office of the Treasury Registrar (OTR) has explained that the government’s decision to collaborate with the private sector in managing certain state-owned enterprises is aimed at enhancing efficiency, attracting capital, and leveraging technology to drive national economic growth.
Ms Lightness Mauki, Director of Performance Management, Monitoring, and Evaluation of Commercial Enterprises at OTR, said the partnerships form part of a broader government strategy to improve enterprise performance while encouraging private investment.
She made the remarks during an interview with local TV station recently as preparations continue for the Minority Interest Forum (MIF) 2026-a gathering of more than 150 board directors and CEOs from 56 companies in which the government holds less than 51 percent of shares.
The forum, which aims to strengthen strategic leadership in these enterprises, is scheduled for March 16–18 at PAPU Tower in Arusha.
Looking back at the government’s divestment strategy, Ms Mauki explained that it once owned over 400 state-owned enterprises.
“Originally, there were more than 400 enterprises. We decided to sell some to the private sector while retaining 56 companies in which we hold minority shares,” she said.
She added: “We offloaded shares to allow private investors to take larger stakes, enabling collaboration in expertise, capital, and technology to ensure these companies continue to grow.”
The arrangement benefits both sides: private investors gain opportunities for profit and investment, while the government collects dividends and ensures that these enterprises continue to deliver value to citizens.
Over the past five years, dividends from companies where the government holds minority stakes have surged by 357 percent, rising from 58.26bn/- in the 2019/20 fiscal year to 266.52bn/- in 2024/25.
This remarkable growth underscores the success of the government’s divestment strategy in boosting efficiency and generating higher returns.
The increase in dividends has been matched by a rise in government investment in these companies.
Ms Mauki said that during the same period, the government’s investment in minority-owned enterprises grew by 140 percent, climbing from 1.5tri/- to 3.6tri/-, highlighting the steady growth and effectiveness of the collaborative strategy with the private sector.
When asked who initiates private sector participation in these enterprises, she stressed that it is a deliberate government strategy designed to improve the performance of public enterprises.
“The government recognized that there were many enterprises, and at the same time, technology is advancing rapidly and capital needs are substantial. Therefore, it was necessary to work with the private sector to ensure collaboration in managing and developing these companies,” she said.
She clarified that the strategy allows the government to retain shares in strategic companies while enabling private sector investment.
“It was a specific government strategy to distribute shares while keeping minority stakes in key enterprises,” she said, adding that the government cannot cede full ownership because it has obligations to the public.
“You cannot give away 100 percent because the government has a duty to ensure citizens receive a range of services and products,” she explained.
Regarding youth participation, Ms Mauki said the government has prepared a new framework through Dira 2050 and OTR’s 25-year Long-Term Perspective Plan, set to commence on July 1, 2026.
“The plan will expand the range of companies and institutions listed on the stock market to provide broader opportunities for citizens, especially young people, to own shares and earn dividends,” she said.
She added that youth participation was not extensively covered in the previous plan, which ends on June 30 this year, but will receive greater emphasis under the new long-term framework.
