Risk management capacity building to boost tax collection

DAR ES SALAAM: THE Tanzania Revenue Workers Union (TAREWU) has entered into a strategic partnership with the Institute of Risk Management Tanzania (IRMT) aimed at strengthening risk management capacity among Tanzania Revenue Authority (TRA) staff, in a move expected to enhance efficiency in tax collection.

The two institutions signed a Memorandum of Understanding (MoU) on Tuesday in Dar es Salaam, marking the beginning of a collaborative effort to equip revenue workers with critical skills in identifying, assessing and mitigating risks in their day-to-day operations.

The initiative is widely seen as a catalyst in supporting the implementation of the National Development Vision 2050, which targets transforming Tanzania into a one trillion US dollar economy.

Speaking during the signing ceremony, IRMT President, CPA Pius Maneno, said the partnership underscores the importance of fostering a strong working relationship that prioritises proactive risk management.

He explained that strengthening the capacity of stakeholders and workers to anticipate and manage risks would significantly reduce the occurrence of disasters, which often derail economic progress.

“This collaboration is about ensuring that both employees and institutions are able to avoid risks before they escalate into disasters. When risks are minimised, the economy becomes more stable, the country progresses and national development goals are achieved,” he said.

“The country is determined to move away from the cycle of disasters. By focusing on risk management, we will be able to cut down the costs associated with emergencies and redirect resources towards development priorities,” he said.

CPA Maneno further highlighted emerging challenges such as climaterelated risks and cyber security threats, noting that institutions must keep pace with rapid technological advancements.

“We are operating in a dynamic environment where risks are constantly evolving, including those related to climate change and cyber security. It is therefore essential for institutions to collaborate and stay aligned with technological growth,” he emphasised.

On his part, TAREWU Chairperson, Lutufyo Mtafya, said the union’s strategic plan for 2026–2030 prioritises capacity building among its members, with risk management identified as a key focus area.

He said the decision to partner with IRMT was informed by the need to equip members with relevant skills that align with institutional and global standards. Mr Mtafya noted that the TRA had previously conducted risk management training in 2011, which led to the establishment of a dedicated risk control department, demonstrating the importance of the discipline within the authority.

“TRA is currently implementing International Organisation for Standardisation (ISO) standards in quality management. As employees, we must keep pace with the institution’s direction by enhancing our competencies in areas such as risk management,” he said.

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The agreement, which will be implemented over a period of five years, is expected to reach more than 7,000 TAREWU members across the country. TAREWU Secretary General, Mr Michael Marere, expressed optimism that the partnership would lead to increased efficiency and improved revenue collection.

He said equipping staff with risk management skills would help seal loopholes that often lead to revenue losses, thereby boosting government collections.

“Efficiency will certainly improve and revenue collection will increase because many of the existing loopholes will be addressed through this training. This will ultimately support the government in achieving the Vision 2050 targets,” he said.

Mr Marere added that one of the core mandates of TRA is to promote voluntary tax compliance, noting that improved systems and welltrained staff would further enhance compliance levels among taxpayers. He said the training programmes will be delivered through both physical sessions and online platforms to ensure wider reach within a short period.

“Our goal is to ensure that all members benefit from this initiative within the five-year period. The use of online training platforms will make it easier to reach participants across the country,” he said.