How public entities can go global
ARUSHA: ANALYSTS and experts have stressed the importance for public entities to improve their performance at home and successfully expand their wings abroad.
Their recommendations come in response to President Samia Suluhu Hassan’s recent directives aimed at enhancing the effectiveness of public institutions.
Speaking during the opening of the second forum that involved Chairpersons of Board of Directors and Chief Executive Officers of public institutions in Arusha on Wednesday, President Samia emphasised that boosting the efficiency of parastatals would enable better management of invested financial resources and generate funds for development projects.
Dr Samia highlighted the need for the entities to fulfil their core objectives, reduce reliance on government funding and increase their contribution to the national revenue.
She urged public entities to explore international markets, noting that countries with successful public entities often contribute over 30 per cent to the Gross National Income (GNI).
In contrast, Tanzanian parastatals currently contribute only 1 per cent to the GNI.
She cited Angola, Botswana and Mauritius as examples of countries with high-performing public entities.
Commenting, Economic Diplomacy Expert Professor Kitojo Wetengere of the University of Arusha emphasised that public entities must deliver high-quality services domestically to compete effectively internationally.
“Entities that excel abroad are those with world class services. Underperforming entities need to re-evaluate and improve their service delivery both at home and beyond,” Prof Wetengere told the ‘Daily News’.
He also called for improved management within public entities, urging CEOs to adopt a competitive mindset and operate economically.
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Public-Private Partnerships (PPPs) were highlighted as crucial, with Prof Wetengere suggesting that government shares in these partnerships should be minimal to enhance accountability and ownership.
Public Administration Expert Dr Adam Mnyavanu from the Institute of Accountancy Arusha (IAA), stressed that reforms should start with administrative structures.
He said advisory and board members should possess relevant academic qualifications and experience to provide effective guidance.
Dr Mnyavanu also advocated for feasibility studies and research on new technologies and markets to enhance profitability and performance.
An economist and investment banker, Dr Hildebrand Shayo criticised the inefficiencies caused by ineffective management and excessive bureaucracy in State Owned Enterprises (SOEs).
He suggested that the next CEO forum should focus on assessing the progress of both high-performing and underperforming entities based on President Samia’s directives.
Shayo emphasised that fulfilling the president’s directives could significantly enhance the contribution of SOEs to the GDP and job creation.
“SOE executives need to implement robust plans, ensure autonomy and improve governance,” he said, adding that SOEs should operate with strategic, security and economic considerations in mind, similar to practices in countries like China.
Chairman of the Parliamentary Investments Committee (PIC), Mr Vuma Augustine noted that the total value of investments in public entities stands at 76.56tri/-.
