Tanzania names lower levels implementation among 59 challenges hindering business operations

DAR ES SALAAM: THE Minister of State in the President’s Office for Planning and Investment, Kitila Mkumbo, said efforts to improve the business environment in Tanzania are facing a major challenge in changing the mindset of government officials.

Speaking today, March 27, 2026, in Dar es Salaam, in the presence of Zanzibar President Hussein Ali Mwinyi, during a review meeting of the Second Business Environment and Investment Improvement Plan (MKUMBI II), Prof Mkumbo said although top leadership is actively championing reforms, significant challenges remain at the lower levels of policy implementation.

He explained that public institutions and regulatory authorities bear primary responsibility for overseeing the business environment. If that environment remains unfavorable, these institutions are largely accountable.

He emphasized that meaningful reform must therefore begin within these entities.

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According to the minister, the draft MKUMBI II has identified 59 challenges hindering business operations in both Mainland Tanzania and Zanzibar. To address these, the plan proposes 11 priority areas encompassing a total of 246 reform actions.

Prof Mkumbo further clarified that the central objective of the plan is to transform the public sector from merely enforcing regulatory compliance into actively facilitating business activity. He stressed that shifting institutional mindsets is more difficult than passing legislative reforms, yet it is critical to the success of these changes.

He also acknowledged the existence of mutual distrust between the government and the private sector, where the government often perceives business operators as tax evaders, while the private sector views the government as a barrier to growth. He noted that MKUMBI II aims to eliminate this mistrust by fostering sustained confidence and strong collaboration between the two sides.