Public entities face new yardstick

ARUSHA: PUBLIC institutions will increasingly be assessed by productivity, service quality and their contribution to the economy not dividends alone as the government pushes to align state investments with the National Development Vision 2050.

Treasury Registrar, Mr Nehemiah Mchechu announced the shift yesterday during the 2026 Chairpersons and Chief Executive Officers of Public Institutions (C-CEOs) Forum in Arusha, which was opened by Vice-President Deogratius Ndejembi on behalf of President Samia Suluhu Hassan.

Mr Mchechu said the new approach reflects the growing scale of government investments in public institutions and companies, whose value has increased from 67.95tri/- in the 2020/21 financial year to 92.28tri/- in 2024/25.

He said non-tax revenue generated from those investments had also risen from 637.7bn/- to 1.327tri/- over the same period, placing greater responsibility on public entities to deliver broader economic value.

“The growth in the value of government investments and the revenue generated from them places greater responsibility on public institutions to ensure that these resources are managed efficiently and continue to generate value,” Mr Mchechu said.

He said public institutions should no longer be judged solely by the dividends they remit to the Treasury, but also by productivity, quality of services, efficient use of resources, financial resilience, innovation, adoption of technology and competitiveness.

“The changes we are witnessing require us to rethink how we measure the performance of our public institutions and entities. We need to look at the value they create for the economy and society, not dividends alone,” he said.

Mr Mchechu said the forum has become an important platform for discussing how public institutions can increase their contribution to national development as government investments continue to grow, while urging state entities to align their plans and operations with Dira 2050.

Chairperson of the Parliamentary Standing Committee on Public Investments (PIC), Mr Masanja Kadogosa, said Parliament welcomed the progress recorded in public investments but expected stronger returns and tangible benefits for Tanzanians.

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“This is a very significant increase and it is something for which we appreciate the government’s commitment to investing in public institutions and corporations,” Mr Kadogosa said.

He said the growth in government investments should not be viewed as the end of the journey, stressing that Parliament would continue monitoring public corporations to ensure greater efficiency, accountability and measurable results.

“Although we have made significant progress, we must also recognise that we still have a long way to go,” he said.

Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, said stronger-performing public institutions will be critical as Tanzania seeks to expand its economy over the next five years under Dira 2050.

He said the Fourth Five-Year Development Plan requires an estimated 477tri/- in investment, with the private sector expected to contribute 70 per cent and the public sector 30 per cent through infrastructure development and an improved business environment.

“Even for the private sector to contribute 70 per cent, it will require the public sector, through our public corporations, Local Government Authorities and Central Government, to create a conducive environment for business and investment,” Prof Mkumbo said.

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