DAR ES SALAAM: AS vigorous reforms continue to take shape in the public sector, the Treasury Registrar (TR), Mr Nehemiah Mchechu, has said the office’s current strategy is to push for robust public sector growth that will enable thriving entities to extend their wings beyond Tanzania.
Speaking with editors in Dar es Salaam on Monday, ahead of the Second CEO Forum scheduled for Arusha next month Mr Mchechu said it was crucial for public entities and corporates to have an outward looking.
He said the institutions ought to study how they could extend their businesses and wings outside the country, tapping into various investment opportunities available in different countries.
“The moment our entities begin to extend their wings outside the country, is the exact moment that they will be able to expand their capitals and earn maximum profits,” remarked Mr Mchechu.
He said this year’s theme of the forum is, ‘The Public and Statutory Corporation Business Strategies Beyond Tanzania.’
Mr Mchechu said going beyond Tanzania was among the challenges posed by President Samia Suluhu Hassan towards the public sector, when she opened the inaugural CEO Forum in Arusha last year.
The forum officially built a common understanding and set the ball rolling in the journey for reforms and rebuilding in public institutions.
He said that this year’s edition will bring together over 600 chairpersons and CEOs from 309 public entities and corporations.
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Out of them, 253 companies are fully owned by the government and in the remaining 56, the State only owns shares.
Mr Mchechu said the forum was crucial as it brings together technocrats, experts, leaders and individuals with experience of delivering required reforms in public institutions, adding, it will be a forum of ‘Think Tank.’
The TR emphasised the need for a vibrant sectoral strategy for public entities to expand their businesses outside the country, especially in the banking sector.
“You can see many Kenyan banks operating in Tanzania but we have none that operates in Kenya. Banks are like pipelines that pull investments. They support cash flow and business growth.
“We are envious and want to see our local banks with wider network/coverage such as CRDB, NMB, NBC, TCB be outward looking as well.
These banks have wider networks inside the country and it is time now they consider to be regional banks.
For them to have an impact, they should continue to improve locally by serving more business people as well as other individuals,” he noted.
He insisted “It is imperative that we assess and review our business strategies for public institutions and corporates to grab opportunities available beyond Tanzania.
“During the forum, we will deeply discuss on which entities could be supported for them to expand their businesses beyond Tanzania,” Mr Mchechu said.
“For the institutions to perform well across the borders, they must have a strong presence and splendid performance locally, otherwise they will be attempting a long-distance race that requires endurance to withstand,” he insisted.
He said that the TR office will continue with reforms by eliminating non performing institutions and merging those with duplicate roles.
“This exercise of streamlining public entities will be ongoing, the target being having in place few vibrant and strategic institutions.
Recently, we merged and delisted at least 22 entities but few new others will be emerging depending on the needs,” he said.
He said the entities are crucial especially in contributing to the economic growth, government coffers through non-tax revenues, creating employment – direct and indirect as well as provision of services. Public entities contribute over 90 per cent of the non-tax revenues to the government.
“The TR office deals with 90 per cent of non-tax revenue. President Samia issued a target for us to ensure non-tax revenue reaches 10 per cent of the total budget within three to four years.
Last financial year, non-tax revenue contribution to the budget stood at 3 per cent and this financial year we are targeting to reach 4.5 per cent,” he said.
