Tanzania envisions good performance of its entities in the Public Investment Bill

DODOMA: THE Tanzanian government has said it will finalise the Public Investment Bill in the 2026/27 financial year as part of a broader strategy to strengthen the performance of public entities, enabling them to operate more efficiently, generate higher revenues, and contribute to the implementation of Dira 2050.

Revealing this in Parliament in Dodoma today, April 16, 2026, the Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, tabled his ministry’s budget proposals of 144.85bn/- for the 2026/27 financial year.

Prof Mkumbo said the Bill is intended to establish a modern legal framework for the management of public investment, aimed at enhancing efficiency, accountability, and the overall contribution of public entities to the national economy.

He explained that, among other provisions, the Bill will propose the establishment of a Public Investment Management Authority to coordinate and oversee government investments through its institutions under a unified national perspective.

It will also propose the creation of a Public Investment Fund to support capital mobilisation for investments through state-owned entities, without jeopardising core revenue streams that go to the Government Consolidated Fund.

In the area of governance and leadership, the Bill will introduce a competitive recruitment system for Chief Executive Officers and Boards of Directors of public institutions, a move aimed at enhancing professionalism, accountability, and operational efficiency.

The government also plans to increase operational autonomy for state-owned enterprises engaged in commercial activities, enabling them to operate more efficiently, reduce dependence on government subsidies, and strengthen competitiveness in their respective sectors.

However, Prof Mkumbo stressed that the increased autonomy will be accompanied by robust performance management systems to ensure accountability and delivery of expected results.

The OTR oversees a total of 308 entities, including those in which the government holds minority shares, with a combined investment value of 92.3 tri/-, of which 91 are commercial entities.

In the 2026/27 financial year, the government will also continue with a comprehensive review of the performance of public institutions, taking appropriate measures including merging entities with overlapping mandates, dissolving those whose relevance has expired, and improving those facing operational challenges.

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Following a performance review conducted in 2023, the government directed the merger of 14 public entities and the dissolution of three others.

So far, three entities have been dissolved and two merged, with the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) consolidated to form the Tanzania Investment and Special Economic Zones Authority (TISEZA).

Prof Mkumbo said the government is finalising legal procedures to complete the remaining mergers.

On revenue performance, the OTR is projected to collect 1.79 tri/-  in non-tax revenue in 2026/27, up from a target of Sh1.69 trillion in 2025/26.

By March 2026, non-tax revenue collections had reached 773.37bn/-, up from 664.53bn/- recorded in the same period the previous year, reflecting improved performance in public entity contributions.

The revenue sources include dividends from public institutions, a 15 percent gross revenue contribution from selected entities, income from the Tanzania Telecommunications Traffic Monitoring System (TTMS), loan repayments and interest, as well as other income streams.

In another development, the Office has continued with the privatization of six re-vested industries, namely NMC Mzizima, NMC Isaka, CDA Integrated Industry Limited, Kilimanjaro Paddy, Moshi Pesticides, and Unique Steel Rolling, with legal procedures ongoing to ensure the Government derives maximum value from the assets.

It has also conducted valuation of various re-vested assets, including Tembo Chipboards factory, flower farms in Arusha (Malalua, Kili Flora Chekereni, and USA River), Basuto farm in Manyara, NAFCO farms in West Kilimanjaro, and KPL Mngeta farm in Morogoro, aimed at attracting strategic investors to enhance productivity.

Prof. Mkumbo said the government will continue strengthening oversight of public investments and advancing institutional reforms to increase their contribution to the national economy, with a target of public entities contributing up to 8 percent of GDP by 2050.