Government set to overhaul leadership of public corporations

By The Respondents Reporter

The Tanzanian government is set to implement sweeping reforms in the leadership of public corporations, ensuring that top executives and board members are appointed through a competitive process. 

The move aims to boost transparency, integrity, and allow all qualified Tanzanians an opportunity to participate.

Minister of State in the President’s Office for Planning and Investment, Prof. Kitila Mkumbo, said the new system will take effect on July 1, 2026, after the passage of new legislation currently being prepared by the government.

“The CEO of TANESCO, or any board member of TPA or TISEZA, will now be selected through a competitive process. All qualified Tanzanians can apply, and the best candidates will be chosen based on merit,” Prof. Mkumbo told journalists in Dar es Salaam.

The reforms are part of a broader effort to improve the performance of public corporations, enhance transparency in leadership appointments, and eliminate direct appointments that have previously drawn criticism for lacking open competition.

Under the new system, public corporations will also be assessed using clear performance indicators that focus on economic efficiency and quality of services. 

Each corporation’s contribution to the national economy and citizen welfare will be measured, ensuring accountability and better results.

In addition, some commercial public corporations will be required to list on the stock exchange, giving Tanzanians the chance to buy shares and own part of these entities. 

The initiative is designed to increase transparency, strengthen accountability, and promote citizen participation in the management of public resources.

Prof. Mkumbo emphasized that these reforms will not only enhance corporate governance but also improve the delivery of services to the people, while maximizing the economic contribution of public corporations to the country.

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