Why the MIF shapes Tanzania’s public entities

ARUSHA: AS Tanzania accelerates economic reforms and strengthens public investment management, the Minority Interest Forum (MIF) has emerged as a central pillar within the country’s governance architecture.

Now in its third edition, MIF 2026 is scheduled for March 16–18 at PAPU Tower in Arusha, bringing together over 200 Minority Interest Directors and Chief Executive Officers from 56 companies in which the government holds less than 51 per cent ownership, alongside key public sector leaders.

The Forum, convened by the Office of the Treasury Registrar (OTR), will be graced by Chief Guest, Minister of State in the President’s Office – Planning and Investment, Prof Kitila Mkumbo, underscoring the strategic importance the government places on minority interest governance.

The Treasury Registrar, Mr Nehemiah Mchechu, explains that MIF was established in response to a long-standing need: minority interest entities, despite operating in strategic sectors of the economy, historically received less structured engagement than wholly government-owned enterprises.

While early reform efforts focused on stateowned enterprises, companies under minority shareholding arrangements collectively represent a substantial portion of public investment and influence key areas of economic activity.

The establishment of the Forum marked a deliberate effort to correct this historical imbalance by institutionalising coordination, sharpening performance oversight, and strengthening alignment between the government and its board representatives.

This strategic engagement has coincided with a significant growth in the value of government investments in minority stake companies, which rose from 821.51 billion/- in 2020 to 1.94 trillion/- in 2024, representing a remarkable 136 percent increase.

Recognising the strategic importance of these investments, Mr Mchechu recently called on government-appointed board representatives to take pride in their roles, emphasising that their active engagement is crucial for ensuring the government realises tangible benefits from its minority holdings.

While the State does not exercise majority control in these entities, it retains a fiduciary responsibility to safeguard public capital, ensuring that these investments are managed strategically, profitably, and in alignment with national development objectives.

The MIF forms a crucial part of wider reforms designed to manage this portfolio efficiently and transparently while maximising its contribution to sustainable, long-term national growth.

It is within this ongoing reform trajectory that MIF 2026 will convene, serving as a high-level governance and leadership platform strategically aligned with Dira 2050 and Tanzania’s broader public sector transformation agenda.

Central to the Forum’s mandate is the drive to enhance returns on public investment. While average annual returns from minority interest entities have historically hovered around seven percent, strengthened governance frameworks, clearer strategic direction, and more rigorous performance monitoring are expected to push these returns beyond ten percent.

Reinforcing this goal, during the closing session of the 2025 Forum in Kibaha, Chief Secretary Ambassador Dr Moses Kusiluka challenged directors.

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“I challenge you to boost the return on investment from the current seven to over 10 percent annually. To achieve this goal, you must enhance operational efficiency,” he stated, emphasising that disciplined management is key to improving financial performance.

This focus on efficiency and oversight lies at the very heart of the Forum’s mandate, ensuring that public investments in minority interest entities generate tangible, measurable returns.

Enhanced supervision has already contributed to a historic 1.028 trillion/- in non-tax revenue collections, including dividends, during the 2024/25 financial year—all while preserving the efficiency of market-driven management and without placing the State in direct operational control.

Beyond financial performance, the Forum addresses structural challenges that previously limited effective oversight.

Analysts note that information asymmetry often constrained the ability of the OTR to engage fully with government-appointed directors.

By creating a structured, recurring platform that brings directors and chief executives together, MIF narrows these gaps.

Ms Lightness Mauki, Director of Performance Management, Monitoring and Evaluation of Commercial Entities at the OTR, explains that the Forum clarifies expectations, enhances information flow, and equips State representatives to contribute more effectively at board level.

In parallel, the Forum reinforces standards of corporate governance, encouraging transparency, accountability, and ethical leadership while providing space for candid reflection on the complexities faced by directors representing public interests in companies dominated by private shareholders.

This dynamic calls for more than passive participation, demanding economic patriotism—an approach in which directors actively safeguard public value while supporting corporate competitiveness, employment creation, and revenue generation.

The evolution of the Forum itself reflects a maturing reform process.

The inaugural edition in 2024 concentrated on governance discipline and economic alignment.

The second edition, held from March 26–28, 2025, at the Mwalimu Nyerere Leadership School in Kibaha, shifted focus toward digital transformation, examining the role of artificial intelligence, data analytics, blockchain technologies, and innovation in strengthening corporate decision-making and operational efficiency.

Speaking during the 2025 opening ceremony, Prof Kitila Mkumbo praised the OTR for ensuring that minority interest companies receive the attention they deserve.

He highlighted the pivotal role of OTR’s mandate in managing government investments prudently, ensuring they deliver returns and contribute to economic growth.

He also stressed that as directors and CEOs, their leadership and strategic direction are crucial to ensuring companies operate efficiently and generate value for all stakeholders.

The presence of senior national leaders, including Chief Secretary Dr Kusiluka, underscored the strategic importance attached to minority interest governance.

This year’s theme, “From Oversight to Foresight: Advancing Agile and Innovative Leadership under Transformation Pressures,” builds on that foundation.

The emphasis moves beyond compliance toward anticipatory leadership, encouraging directors and executives to think ahead, adapt quickly, and cultivate institutional resilience.

In doing so, MIF 2026 seeks to position minority interest entities not merely as financial holdings, but as active drivers of competitiveness and structural transformation.

Global economic practice supports this direction. Structured minority shareholding platforms allow governments to align corporate strategies with national development priorities while preserving the discipline and innovation of private sector management.

Such arrangements help optimise non-tax revenues, support capital market development, and facilitate orderly divestment or public listings where appropriate—broadening share ownership and reducing fiscal pressures without relinquishing strategic influence. Practical examples illustrate what effective governance can achieve and offer valuable lessons for other entities.

NMB Bank Plc recently became the first company in Tanzania’s history to surpass 1 trillion/- in profit-before-tax, recording 1.1 trillion/- in 2025. Its achievement demonstrates how disciplined strategy, operational efficiency, and innovative leadership can drive exceptional performance—insights that Minority Interest chairpersons and directors can study and adapt within their own organisations to enhance returns, strengthen governance, and foster sustainable growth.

During the launch of its Medium-Term Plan 2026–2030, NMB Managing Director and CEO Ruth Zaipuna attributed the milestone to deliberate strategic choices, operational efficiency, disciplined governance, and sustained investment in technology and people.

Such performance demonstrates the culture of accountability and innovation that the Forum seeks to replicate across minority interest entities. The benefits of the Forum extend beyond boardrooms.

For strategic partners, it provides a structured avenue to engage directly with institutional leaders responsible for governance, procurement, and long-term investment decisions.

For the host city of Arusha, Ms Mauki said, the gathering is expected to generate economic spillovers across hospitality, tourism, transport, and related services, reinforcing its role as a hub for high level national engagements.

Taken together, these developments point to a broader shift in Tanzania’s approach to public investment stewardship.

The MIF represents a move toward disciplined, performance-oriented, and forward-looking management of state assets, positioning minority interest entities as strategic instruments for sustainable, longterm economic transformation.