SOEs urged to lead shift to market-driven economy

ARUSHA: THE State-Owned Enterprises (SOEs) have been urged to play a central role in transforming Tanzania into an entrepreneurial state, as part of the implementation of the country’s long-term development blueprint, National Development Vision 2050 (DIRA 2050).

The call was made on Tuesday by Executive Secretary of the National Planning Commission (NPC), Dr Fred Msemwa, while addressing over 650 participants at the 3rd SOEs Annual Conference in Arusha.

The event brought together board chairpersons and Chief Executive Officers ( CEOs) from 253 public institutions, including leaders from 35 companies in which the government holds minority shares. It was organised by the Office of Treasury Registrar (OTR).

Dr Msemwa said that SOEs are critical players in Tanzania’s journey toward achieving the 1 trillion US dollar-economy target by 2050.

“SOEs must abandon the business-as-usual mindset and adopt a results oriented, entrepreneurial approach. The future of our economy depends on bold, innovative institutions ready to take calculated risks and create value,” he said.

He challenged the long- held negative perception of entrepreneurship in Tanzania, where the term is often equated with informal, small- scale traders (hawkers), stating that true entrepreneurship involves innovation, calculated risk-taking and value creation.

“We must redefine entrepreneurship not as hawking but as strategic risk taking for profit. Our institutions need a mindset shift to transform into profit-making, entrepreneurial entities,” he added.

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Dr Msemwa also noted that Tanzania has not fully embraced a functioning market economy and SOEs must help lead the way by investing in productive sectors and implementing well-aligned strategic plans.

He revealed that the NPC is developing guidelines to assist SOEs in preparing strategic plans aligned with Vision 2050 targets, ensuring a unified national direction across ministries and public corporations.

Currently, Tanzania’s GDP stands at 85 billion US dollars, meaning the nation must multiply its economic output more than tenfold to reach the 1 trillion US dollar goal by 2050.

“Achieving this target will require unprecedented effort, coordination, innovation and investment across all sectors,” Dr Msemwa stressed.

He also called for robust public awareness campaigns to ensure that all citizens understand and support Vision 2050, reinforcing national ownership of the development agenda.

Dr Msemwa said that key drivers of Vision 2050 include energy, integrated logistics, science and technology, research and development and digital transformation.

Transformative sectors identified in the vision include agriculture, tourism, manufacturing, construction and real estate, mining, the blue economy, financial services, sports and the creative industry.

On his part, Treasury Registrar Mr Nehemiah Mchechu underscored the importance of collaboration between the public and private sectors in realising Vision 2050.

“Bringing in private in- stitutions and investors will not only accelerate economic growth but also improve ser- vice delivery and innovation across sectors,” he said.