TZ targets self-reliant, profitable SOEs by 2050

DODOMA: BY 2050, Tanzania aims to transform its state-owned enterprises (SOEs) into commercially driven, transparent and profitable institutions that attract investment and partner effectively with the private sector to power national economic growth, it How to hit the mark has been stated.

This ambition is outlined in the Tanzania Development Vision 2050, launched by President Samia Suluhu Hassan on Thursday in Dodoma, at a ceremony attended by senior government officials and private sector leaders, including Mr Nehemiah Mchechu, the Treasury Registrar.

The Office of the Treasury Registrar (OTR) has been entrusted with the responsibility of ensuring this Vision becomes reality, given its mandate to oversee investments in public institutions.

Currently, the OTR supervises 252 public entities, of which 217 are service oriented, while 35 operate commercially.

According to the document, government subsidies to many SOEs have hindered competitiveness, creating an uneven playing field between public enterprises and private companies. This has, in turn, reduced the private sector’s efficiency and its contribution to national development.

“These enterprises (public entities) have been receiving government subsidies, which undermines fair competition with private firms. This situation has weakened the private sector’s ability to effectively drive national development,” the Vision states.

The Development Vision 2050 emphasises the need for a clearly defined investment framework that outlines the roles and focus areas of both public commercial enterprises and private sector players.

This will accelerate economic growth and ensure sustainable development.

“We must build a public sector that enables and facilitates business and investment. By doing so, we will develop a competitive, strong, inclusive and accountable private sector that significantly contributes to social and economic development,” the Vision adds.

Achieving this goal will require comprehensive policy, governance and operational reforms to clearly define strategic sectors for public investment and open up wider opportunities for private sector participation.

Moreover, the Vision highlights the need for a public service that values and supports private sector growth, through the creation of a business- and investment-friendly environment.

Tanzania aims to become one of the top three investment destinations in Africa and among the most business-friendly countries on the continent.

“A vibrant commercial sector is essential for building a strong, inclusive and competitive economy,” the Vision states.

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The presence of small, medium and large enterprises both local and foreign-owned alongside competitive public commercial entities, is expected to enhance Tanzania’s participation in global markets.

In addition to these benefits, the country anticipates increased innovation, economic resilience and stability, fostering sustainable business growth aligned with dynamic market conditions.