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Board chairs call for reform in public entities’ contributions

AMIDST discussions on increasing contributions from public institutions, several board chairpersons have called for reforms to enhance financial impact of the organisations on the national economy.

ARUSHA : AMIDST discussions on increasing contributions from public institutions, several board chairpersons have called for reforms to enhance financial impact of the organisations on the national economy.

They made the remarks during an interview with the ‘Sunday News’ on Thursday at the ongoing working session of board chairpersons and chief executives of public institutions and organisations at the Arusha International Conference Centre (AICC). In her opening speech of the session on Wednesday, President Samia Suluhu Hassan highlighted findings from the World Bank’s 2023 Report that surveyed over 70,000 public organisations across 91 countries.

The report indicated that three-quarters of the countries have public organisations involved in business and investments abroad. Countries such as Angola, Botswana and Mauritius were cited as examples.

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President Samia noted that these organisations contribute around 30 per cent of their countries’ gross income. In contrast, Tanzania’s public organisations contribute only one per cent of the Gross Domestic Product (GDP).

Given the statistics, Ms Bernadetta Ndunguru, Chairperson of the National Council for Vocational Education and Training (NACTVET), emphasised the need for a shift in mindset among public organisations.

She advocated for a commercial approach similar to the private sector, so as to strengthen both the organisations and the national economy.

“We should not continue working ‘as usual’ simply because we receive salaries at the end of the month. Instead, we should follow the example of successful private entities,” Ms Ndunguru stated. Professor Maulid Mwatawala, Chairperson of the Board of the Tanzania Institute of Education (TIE) and the Tanzania Official Seed Certification Institute (TOSCI), also supported the call for reform. He suggested that public organisations should be granted greater operational freedom to enhance profitability.

“Current government procedures, such as lengthy procurement processes, hinder efficiency. For example, ATCL (Air Tanzania Corporation Limited) must navigate a cumbersome procurement process for aircraft tires, while Precision Air can make direct market purchases,” Professor Mwatawala noted. He also advocated for empowering councils of public institutions to hire skilled individuals to better align with market demands.

Embracing modern IT technologies and providing capital to the said organisations are also crucial for implementing the 4R rebuilding philosophy effectively.

Professor Yunus Mgaya, Chairperson of the Board of Governors at MWEKA College, highlighted the need for changes in governance, business planning, scientific and technological advancements and human resource development within public institutions.

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He argued that proper implementation of these improvements would enhance trustworthiness in securing loans for major reforms and productivity boosts.

“Political will, such as that demonstrated by President Samia Suluhu Hassan through her 4R philosophy, is vital. Public organisations should seize this opportunity to transform and significantly contribute to the country’s economy,” Professor Mgaya concluded.