Treasury Registrar’s Corner: How public entities can flourish globally

TANZANIA: IN order to effectively compete on the global stage and answer President Samia Suluhu Hassan’s call for Tanzanian public entities to go global, it is crucial for these institutions to not only meet but exceed international service standards. This is essential for survival in an increasingly competitive marketplace.

The president’s recent call for Tanzanian public entities to broaden their reach beyond the country’s borders marks a turning point in the nation’s economic strategy. The goal is to harness untapped potential and foster sustainable growth.

By encouraging public institutions to think globally, President Samia underlined the urgent need for transformation, aligning with global best practices. This strategic shift is vital for positioning Tanzania as a competitive player on the world stage, promoting innovation and improving the quality of public services.

President Samia’s assertion that “entities that excel abroad are those with worldclass services” highlights the need for a significant transformation in Tanzania’s public sector. To thrive internationally, public services must undergo thorough evaluations to improve quality and efficiency. This may involve adopting best practices from global leaders and cultivating a culture of continuous improvement.

For example, public health institutions can study successful healthcare models from advanced countries and adapt these practices to Tanzania’s unique context, improving service delivery.

Embracing business practices

An economist from Dodoma University, Dr Lutengano Mwinuka recently stressed the importance of integrating private sector efficiency into public institutions. “Public institutions must incorporate business principles to be more effective and efficient,” he said, challenging the outdated belief that government operations should be exempted from business-like principles.

Collaboration with the private sector can provide valuable expertise and resources, leading to innovative solutions that streamline operations and enhance competitiveness.

Prioritising performance metrics

A business expert and economist, Dr Donath Olomi underscored the importance of performance metrics in measuring success. “Public leadership must focus on results,” he said.

He said by giving public institutions more autonomy in decision-making, they can respond more effectively to market demands. The Office of the Treasury Registrar (OTR) is carefully monitoring this issue and will consider granting increased autonomy to public entities.

According to him, a data driven approach will foster a results-oriented culture, ensuring that public services meet the needs of citizens. Adopting performance metrics similar to those used in the private sector will help track the effectiveness of service delivery and highlight areas for improvement.

Identifying and exploring new markets

To successfully engage globally, identifying and exploring new markets is critical. Dr Daudi Ndaki, an economist from Mzumbe University, advocated for a strategic approach to market entry.

“We must identify countries with high demand for our goods and assess the risks involved,” he advised.

Market research is essential to navigate international dynamics confidently. By conducting feasibility studies and pilot programmes in target markets, public entities can better assess demand before committing to large scale operations.

Financial investment and infrastructure development

The government’s commitment to strengthening public entities is evident in its recent announcement32.4 per cent increase in investments across 309 Public and Statutory Corporations (PSCs) and minority stakes over the past five years. This increase, from 65.19tri/- in 2019/2020 to 86.3tri/- in 2023/2024, signals a clear intent to enhance operational capabilities.

The Treasury Registrar, Mr Nehemia Mchechu, explained that these additional resources will help fund restructuring efforts, modernise management systems and improve infrastructure.

“We are committed to turning these investments into tangible improvements, focusing on upgrading infrastructure and modernising management systems,” Mr Mchechu said.

These investments will provide the foundation needed for public entities to operate efficiently in the global marketplace.

“It is time for public institutions to prioritise efficiency, quality and innovation,” he concluded.

The challenge of sustainability

While increased investment offers promise, the challenge of sustainability remains. An economist from the University of Dar es Salaam, Professor Haji Semboja, believes public entities must balance global ambitions with local realities.

“Public entities must think globally but act locally,” he stated.

A dual approach is essential to ensure growth is both sustainable and beneficial to Tanzania’s broader economic landscape.

Public institutions should prioritise sustainability by considering environmental and social impacts.

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By embedding sustainability into their operations, they can enhance their appeal in international markets, where socially responsible organisations are increasingly valued.

The road ahead Tanzania’s public entities stand at a pivotal moment, ready to embrace global opportunities. By adopting private-sector practices, focusing on strong performance metrics, exploring new markets and managing increased investments effectively, Tanzania can transform its public institutions into competitive forces on the international stage.

Balancing global aspirations with local realities will be key as the nation progresses. With careful planning and execution, Tanzania’s public entities can drive substantial economic growth and engage successfully in international markets.

The journey ahead may be complex, but the vision is clear: A vibrant, resilient economy that benefits all Tanzanians. The time to act is now.