Tanzania’s government has significantly increased its investments in Public and Statutory Corporations (PSCs) and minority stakes over the past five years, marking a notable surge of 32.4 percent.
According to the Office of the Treasury Registrar (OTR), these investments grew from Sh65.19 trillion in the 2019/20 financial year to Sh86.29 trillion in the 2023/24 fiscal year.
This growth reflects the government’s dedication to fostering a resilient economy and improving the efficiency and performance of public entities.
Treasury Registrar Mr. Nehemiah Mchechu attributes this growth to efforts to transform these public institutions, asserting that the surge “poses opportunities for growth in employment, innovation, and sectoral development.
This investment increase signifies a clear governmental strategy to enhance public services and infrastructure, vital for driving sustainable economic growth.
By prioritizing investments in PSCs, the government is laying the groundwork for a more resilient economy that can withstand shifting global and domestic economic conditions.
The rise in investment is not just a numerical increase but a strategic move to improve the lives of Tanzanians through better services and increased infrastructure capacity.
Over the last five years, the government’s total investment in PSCs has steadily climbed, with significant increases from Sh65.19 trillion in 2019/20 to Sh86.29 trillion in 2023/24.
This upward trajectory reflects a proactive approach to economic development. The investments, spread across 287 entities in 2019/20 to 309 entities by 2023/24, demonstrate the government’s growing confidence in the public sector’s ability to drive economic growth.
As investments continue to rise, the government is also expanding the scope of entities receiving funds, signaling a broader commitment to boosting the public sector’s role in national development.
A large portion of these investments has been directed to public institutions and statutory corporations, underlining the government’s emphasis on strengthening public service delivery. In 2023/24 alone, Sh83.47 trillion was allocated to 253 public institutions.
This consistent increase in public sector funding highlights the government's focus on improving the efficiency of public services and ensuring the expansion of critical services.
The government is not only improving existing institutions but is also strategically positioning public corporations to handle future economic challenges effectively.
In addition to investments in public institutions, the government has been steadily increasing its minority stakes in various companies, from Sh2.21 trillion in 2019/20 to Sh2.82 trillion in 2023/24.
This shift reflects a more nuanced economic strategy that aims to leverage private-public partnerships. By maintaining minority stakes, the government can influence key industries while benefiting from the innovation and management efficiency typical of private companies.
The approach allows for a balanced model that encourages private sector collaboration without sacrificing public sector oversight and influence, providing a dual pathway to economic growth.
However, this ambitious investment strategy comes with its set of challenges. The rising number of entities receiving investments—from 287 to 309—necessitates robust oversight mechanisms to ensure that these investments lead to tangible, measurable outcomes.
Effective management and strategic planning will be crucial to avoid inefficiencies or misallocation of resources.
Mr. Mchechu underscores the importance of ensuring that “investment translates into meaningful improvements in public services and economic resilience,” highlighting that simply increasing investments will not suffice without a clear focus on accountability and measurable results.
Looking ahead, the government's approach to increasing investments in both public institutions and minority stakes is poised to drive economic growth and resilience.
The success of this strategy will depend on the government’s ability to maintain transparency and accountability in its dealings, ensuring that these funds are used efficiently to deliver real improvements in public service and infrastructure.
By continuing to balance the strengths of both public and private sectors, Tanzania is positioning itself to build a more resilient economy that benefits all its citizens, improving not only economic growth but also overall living standards.