Public Institutions told to become investment enablers, not obstacles

By The Respondents Reporter

Public institutions must eliminate bureaucratic bottlenecks and provide efficient services if Tanzania is to attract more investment and achieve the ambitions of Vision 2050, the government has said.

Speaking at the closing of the third cohort of a four-day induction programme for chief executives of public institutions, state corporations and government agencies on Friday, Minister of State in the President's Office for Public Service Management and Good Governance, Ridhiwani Kikwete, said public institutions have a central role in creating a business environment that supports private sector growth.

He said the success of Vision 2050 would depend not only on sound policies but also on the ability of public institutions to translate them into measurable economic and social outcomes.

"Public institutions should be facilitators of development, not barriers to investors," Mr Kikwete said, urging chief executives to improve service delivery, reduce unnecessary bureaucracy and embrace innovation and digital systems.

He said leaders would increasingly be judged by their ability to remove obstacles to doing business, improve institutional efficiency and build accountable organisations that deliver results for citizens and investors alike.

According to Mr Kikwete, every decision made by a public institution has a direct impact on the country's investment climate, making timely and reliable service delivery critical to building investor confidence and enhancing Tanzania's competitiveness.

He also urged public institutions to align their strategic plans and performance targets with the implementation of Vision 2050, which officially came into effect on July 1, saying the long-term development agenda should guide everyday decision-making across government.

The minister called for stronger partnerships between public institutions, the private sector and development partners, arguing that greater collaboration would improve service delivery, support business growth and accelerate economic transformation.

He further directed institutions to expand the use of digital technologies, strengthen domestic revenue mobilisation and enhance governance systems to improve efficiency and accountability.

Mr Kikwete said the impact of the executive leadership programme would be assessed not by the number of certificates issued but by tangible improvements in institutional performance, including better public services, prudent use of public resources, stronger financial performance and greater accountability.

Permanent Secretary for Investment in the Ministry of Planning and Investment, Dr Fred Msemwa, said the training comes at a critical stage as Tanzania pursues reforms aimed at expanding the economy to nearly ten times its current size under Vision 2050.

He said achieving that ambition would require visionary and accountable leaders capable of translating national priorities into practical development outcomes.

"The knowledge and experience gained through this programme should strengthen your ability to lead institutions that contribute meaningfully to Tanzania's economic transformation," Dr Msemwa said.

Representing the Permanent Secretary in the President's Office for Public Service Management and Good Governance, Ibrahim Mahumi said strengthening leadership capacity remains essential to improving public service delivery and implementing national development priorities.

He urged participants to foster professionalism, accountability and results-based management while applying the skills acquired during the training to improve governance and the management of public resources.

Treasury Registrar Nehemiah Mchechu said reforms underway across public institutions are already producing positive results, including improved service delivery, stronger operational efficiency and better financial performance.

He said the Office of the Treasury Registrar currently oversees 308 public institutions and companies in which the government holds full or partial ownership, representing investments worth TZS 92.3 trillion.

Mr Mchechu said several public institutions have reduced their reliance on government funding by increasing internally generated revenue, reflecting growing financial sustainability.

"We want more institutions to become financially self-reliant while continuing to deliver quality public services, except those whose mandates require continued government support," he said.

He added that the success of the reform agenda should also be measured by changes in institutional culture, leadership and the commitment of boards and chief executives to drive transformation.

Launched in 2024, the induction programme has so far trained 244 chief executives, including 57 participants in this year's third cohort. 

The initiative is organised by the Office of the Treasury Registrar in partnership with the UONGOZI Institute to strengthen leadership, improve governance and support the implementation of Vision 2050.

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