From reforms: Public investment success stories

DAR ES SALAAM: IT started with quiet, calculated reforms and not headlines or grand announcements, but intentional steps taken behind the scenes to reposition the government’s investment portfolio.

Over the past five years, Tanzania’s public investment landscape has undergone a transformation of steady, strategic and deep structures.

At the heart of this shift is the Office of the Treasury Registrar (OTR), the institution mandated to oversee and manage the government’s shareholding in public enterprises.

The OTR, long focused on managing government investments, has now emerged as a key driver of reform unlocking value, enhancing oversight and delivering measurable results across the public investment portfolio.

Now at the helm is Mr Nehemiah Mchechu, Treasury Registrar, whose leadership has accelerated this momentum reviving dormant investments, deepening oversight and repositioning the government as a serious player in national wealth creation.

Among the clearest indicators of this progress is the dramatic growth in non-tax revenue.

Often considered the hidden engine of government income, these funds generated from dividends, fees and returns on investment have surged by an astonishing 61 per cent.

In 2020/21, the government collected 637bn/- in nontax revenue.

By 2024/25, that figure had climbed to 1.028tri/-. This growth has created crucial fiscal breathing room and reduced the government’s reliance on traditional tax revenue. Complementing this financial surge is the marked increase in the total value of government investments.

In just five years, the portfolio of state-owned assets including holdings in Public and Statutory Corporations (PSCs) and strategic enterprises expanded by 32 per cent, rising from Sh65.19tri/- in 2019/20 to 86.29tri/- in 2024/25.

This growth not only reflects improved market performance and asset revaluation but also signals a fundamental shift in how public investments are managed: With clear performance targets, commercial discipline and a renewed focus on value creation.

This fiscal turnaround has been reinforced by a wave of institutional recoveries and financial breakthroughs across several strategic public enterprises each showcasing the impact of disciplined management, structured oversight, and targeted reform.

At the forefront of this transformation is Tanzania Commercial Bank (TCB), which achieved an extraordinary recovery by turning an accumulated loss of 46.2bn/- in 2023 into a profit of 31.6bn/- in 2024.

This remarkable turnaround reflects significant improvements in governance, risk management and capitalisation.

A similarly promising trend was observed at Tanzania Electric Supply Company (TANESCO), the country’s largest utility, which saw its annual profit grow from 8.9bn/- to 21.8bn/- within the same year.

“This performance confirms the growing financial viability of the energy sector under reform,” underscored Mr Mchechu.

In the extractives space, Tanzania Petroleum Development Corporation (TPDC) delivered a record profit of 306bn/-, up from 159.6bn/- in the previous year.

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This achievement, Mr Mchechu explained, underscores the potential of Tanzania’s energy resources when managed with commercial discipline.

That same spirit of transformation is evident at State Mining Corporation (STAMICO), which along with TPDC has now achieved full financial independence, eliminating the need for annual government subventions that previously totalled 19bn/-.

This shift not only reduces fiscal pressure on the Treasury but also signals sustainable growth within these institutions.

Adding to these successes is the return to profitability of TAZAMA Pipelines Limited, which declared 4.35bn/- in dividends in August 2024 its first dividend payment since 2019.

This milestone underscores the renewed commercial viability of Tanzania’s strategic infrastructure investments.

A major step toward institutionalising this reform momentum came with the launch of the Public Investment Management Dashboard in August 2025.

Officially inaugurated by Vice-President Dr Philip Mpango, the dashboard introduces a new era of real-time, data-driven oversight.

It allows the OTR and government stakeholders to instantly monitor revenue flows, investment performance and operational efficiency across PSCs.

By providing access to live performance data, the platform is expected to enhance transparency, reduce delays and promote faster, evidencebased decision-making. While technology strengthens oversight, policy reform has expanded the government’s strategic position in key sectors.

A notable example is the increase of Tanzania’s Free Carried Interest in SOTTA Mining from 16 per cent to 20 per cent.

Grounded in the Mining Act of 2010, this adjustment reflects the government’s commitment to securing greater value for Tanzanians from their natural resources and signals a more assertive and equitable investment approach in extractives.

Looking further ahead, OTR has developed a comprehensive Long-Term Perspective Plan (2025/26–2049/50) to provide a structured, 25- year roadmap for public investment.

The plan prioritises highimpact sectors including energy, transport, agriculture, finance, mining, manufacturing and tourism as drivers of longterm economic transformation.

With a clearly defined Vision to be “a driving force for transformational economic expansion through government investments,” and a Mission to “efficiently oversee and optimise government investments to enhance social and economic growth for all Tanzanians,” the plan provides a future-facing strategy for sustained development.

Recognising that successful reform requires both institutional expertise and global standards, OTR has also partnered with leading international consultancy firms to support performance evaluation of 252 PSCs.

Historically, performance evaluations took up to four years per cycle. Today, under this enhanced model, 60 to 70 evaluations are conducted annually, accelerating interventions and strengthening turnaround strategies for underperforming entities.

Reform, however, is not driven by systems and tools alone — it is powered by people. OTR has invested in strategic engagement and capacity building for leadership across PSCs.

Over the last three years, working sessions with CEOs and Board Chairpersons have been held in 2023, 2024 and 2025, focusing on governance, performance targets, and alignment with national priorities.

Moreover, 193 CEOs from PSCs have undergone structured induction programmes, ensuring a shared understanding of responsibilities and a unified performance culture.

Directors representing minority interests have also participated in dedicated sessions in March 2024 and March 2025, strengthening transparency and voice across all levels of investment governance.

To support public confidence and informed scrutiny, OTR has institutionalised a new culture of transparency and accountability.

Audited financial statements of PSCs are now publicly released and weekly meetings with editors and media stakeholders have become a regular platform for public engagement.

This proactive approach ensures that performance data is not just reported internally but made accessible to all Tanzanians.

Taken together, these reforms are more than just institutional improvements, they represent a bold shift in how Tanzania manages its national wealth.

Through strong leadership, technology, partnerships and transparency, the OTR is repositioning public investments as a strategic pillar of national development.

Tanzania’s reform story is no longer a plan on paper it is a proven path of progress, delivering real impact for the economy and the people.