ARUSHA (Tanzania), Aug 29 (NNN-DAILYNEWS) — PRESIDENT Samia Suluhu Hassan has outlined a bold vision for Tanzania’s future, emphasising strategic investment, food security and a renewed focus on the efficient management of public institutions.
This comes as part of her administration’s ongoing efforts to drive economic growth and ensure long-term prosperity for the nation.
Speaking at the opening of second forum for the Chairpersons of Board of Directors and Chief Executive Officers of public institutions in Arusha, Samia highlighted food security as a critical area for investment.
Citing the Mkulazi Sugar Factory project—undertaken by the National Social Security Fund (NSSF) in partnership with Prison Corporation Sole (PCS), the Head of State said that such collaborations ensure the availability of essential commodities like sugar, even in difficult times.
The president also underscored the importance of generating foreign currency to strengthen the nation’s reserves.
She urged institutions to review strategic plans and collaborate in areas that can quickly generate foreign exchange, positioning Tanzania as a stronger player in the global economy.
In her remarks, President Samia also addressed the varying performance of State-Owned Enterprises (SOE).
She observed that enterprises where the government holds minority interests tend to perform better than institutions with full government ownership.
“If there are underperforming institutions where the government owns 100 per cent shares, we should consider selling those shares to reduce the burden of managing them. Let’s give those capable the chance to run these institutions while we collect taxes and dividends,” she suggested.
President Samia warned against investments made purely on political motivations, which often fail to deliver returns.
“Investment should be made after sufficient feasibility study,” she said. Adding “We often invest unconsciously and do not get the return we should be receiving.”
She called for the culture of accountability and responsible management of public funds, directing the Treasury Registrar and the Controller and Auditor General (CAG) to provide oversight of these institutions.
Another issue the president addressed was the confusion surrounding the Sovereign Wealth Fund.
She clarified that the fund is designed to build capital for future generations, not for immediate use.
“This fund is meant to safeguard the capital for future generations, not for now. Institutions must contribute significantly to this fund,” she said, noting that this will provide financial security for Tanzania’s children and grandchildren.
“Let’s start building the nation’s wealth now so that future generations won’t face difficulties,” she concluded, expressing confidence that with strategic investment and proper oversight, Tanzania can secure a prosperous future for its citizens.
On the reform agenda, she said, it is part of a global effort to adapt and grow. “The agenda of reforms worldwide, not just in Tanzania, is very challenging because human beings prefer what they are accustomed to,” she noted, adding that adjustments in areas, projects and lives are essential for growth and development.
She highlighted that approximately 76tri/- have been invested in SOE, making efficiency and profitability a priority to safeguard citizens’ resources.
“The changes we are making are for the good, with the intention of building our country and our nation,” President Samia affirmed.
Reflecting on international business practices, she referred to a World Bank report from last year, which examined 76,000 public enterprises in 91 countries and found that three-quarters of these countries have businesses or investments abroad.
She pointed out that leading African countries outlined in the report were Angola, Botswana and Mauritius that are conducting international business.
“The slogan you have chosen this year is very important for bringing development within the country. Deliberate on it extensively, share your experiences and later we will come up with a strategy on how we proceed,” she said.
While international investment is vital, President Samia said that domestic efficiency must be prioritised.
“Investment abroad will make more sense if Tanzanians have connections and efficiency in these institutions within the country; we should first show productivity at home,” she remarked, urging institutions to measure their progress.
“Public institutions contribute only one per cent of the GDP, compared to some countries where this figure is as high as 30 per cent.”
Additionally, she urged public institutions to support the private sector in reaching international markets. Using Muhimbili National Hospital as an example, she highlighted how it is crossing borders by bringing in foreign experts and noted that local institutions like Tanzania Bureau of Standards (TBS) should help domestic producers meet international standards to prevent the importation of substandard products.
President Samia also spoke about the ongoing reforms aimed at boosting productivity in public institutions.
“We have embarked on this initiative because we have a directive from the 2020-2025 CCM manifesto that the government should strengthen public institutions so that they can continue to contribute to national development,” she said.
Institutions like State Mining Corporation (STAMICO), Tanzania Agricultural Development Bank Limited, and Tanzania Commercial Bank (TCB) were noted for their improved performance following embracing reforms.
“Reforms bring productivity; let’s not reject them. Let’s adapt at our own pace until we reach where we are going,” she advised, acknowledging concerns about the merger or dissolving of institutions but stressing that sometimes it is necessary.
She also called for the training of CEOs from the private sector to understand government operations without being restricted by bureaucracy, encouraging them to drive change in the public sector.
“Let’s give them opportunities and cooperation to bring about changes in the public sector,” Dr Samia said. — NNN-DAILYNEWS