Samia eyes vibrant entities
DAR ES SALAAM: PRESIDENT Samia Suluhu Hassan on Tuesday announced a new government strategy to allow State-Owned Enterprises (SOEs) to borrow based on their financial capacity, a move aimed at reducing reliance on the national treasury and easing public debt.
She said institutions such as the Tanzania Ports Authority (TPA) and the Tanzania Petroleum Development Corporation (TPDC) have achieved operational and financial maturity, making them capable of sourcing capital independently.
“We are moving towards a future where organisations like TPA and TPDC can borrow based on their own financial strength. These loans will remain on their books, not the government’s,” President Samia said.
Speaking during the 2025 Gawio Day event at State House in Dar es Salaam, President Samia cited a recent shift in donor interest following visible progress in port development.
“In 2023, we requested a loan to develop our ports, but it was declined. Later, when they saw the developments and the revenue we were generating, they came back offering 500 million US dollars (about 1.3tri/-). I told Mr Mbossa (TPA Director General, Plasduce Mbossa) not to rush but engage them carefully. I reminded him that we began this journey with our own resources, and that is a source of national pride,” she said.
President Samia challenged SOEs to explore alternative financing models, particularly through capital markets.
ALSO READ: Samia honoured for sports development
“Let us strive to enter the capital markets, where our own citizens can invest and support development. This way, we can grow without relying solely on government funds,” she urged.
The Head of State noted that globally, public institutions are key drivers of development and, in some countries, the largest contributors to national income.
“If we increase dividends from our corporations, the world will respect us more, it will show that we have identified and addressed our weaknesses. It means we are becoming self-reliant,” she added.
Citing the example of TPA, she said improvements at the Dar es Salaam and Tanga ports have significantly reduced the private sector’s burden.
“Private operators no longer need to invest in offloading equipment. Now, they can focus their investments on improving infrastructure,” she said.
The president also issued several directives aimed at accelerating institutional reforms, calling on public institutions to boost innovation and efficiency.
“I understand many institutions face challenges, but the biggest one is access to capital. The government has increased investment to 86.29tri/-, up by 32 per cent, but the demand remains high. We must be creative and stop waiting for the government to solve all our problems. Use the opportunities around you, including the capital markets,” she urged.
She directed the Treasury Registrar to identify and support public institutions ready to list on the stock exchange.
“Let us identify institutions with the potential to raise money through the stock market. This will help ease the burden on government finances,” she said.
Turning to technology, President Samia said the use of digital systems has enhanced transparency and revenue collection.
“ICT has boosted our confidence that we are collecting more. I urge all leaders to ensure these systems are regularly updated to provide accurate information and improve productivity,” she said.
The president also stressed the importance of human capital development.
“The execution of institutional responsibilities depends heavily on the quality of our people. I direct the Treasury Registrar and other relevant bodies to continue building staff capacity in modern disciplines and provide the right incentives to increase productivity.”
She also highlighted recent progress in the mining sector, noting the government’s growing equity in mining companies.
“We have moved from four companies in 2020 to 12 companies today. This is a major milestone in ensuring that Tanzanians benefit more from our mineral wealth. I direct the Treasury Registrar to complete negotiations with the remaining companies,” she said.
ALSO READ: Delivering the Promise: Analyzing Samia’s success 2020–2025
She instructed the Minister for Planning and Investment, Professor Kitila Mkumbo, to fast-track the enactment of the Public Investment Act.
“Let us ensure this law is completed to strengthen governance over public investment and support the operationalisation of the national investment fund,” she said.
President Samia commended public institutions for their progress in recent years.
“These reforms are a step forward. Compared to three years ago, we can now see the light. We are on the right path.”
During the event, she received a record 1.028tri/- in dividends and contributions from public institutions and companies in which the government holds minority shares. The amount represents a 68 per cent increase compared to the same period last year and accounts for 34 per cent of total collections in the 2023/24 fiscal year.
Prof Mkumbo said public corporations play a critical role in economic development and job creation, contributing significantly to the 155,019 jobs created during President Samia’s four-year tenure.
“These corporations are at the forefront of constructing essential economic infrastructure and delivering vital social services,” he said.
