Government puts private sector at centre of $1 trillion economic ambition

By The Respondents Reporter

The government has challenged Tanzania’s private sector to step up investment in production, infrastructure and technology as the country seeks to build a $1 trillion economy by 2050.

Deputy Finance Minister Mshamu Ali Munde said achieving the target would depend largely on the ability of businesses and financial institutions to turn available capital into productive investments that create jobs, increase output and enable Tanzanian companies to compete in regional and global markets.

He said the government’s long-term development strategy places the private sector at the centre of investment, with a 70:30 investment framework under which the private sector is expected to provide the larger share while the government creates an enabling policy, legal and economic environment.

Mr Munde made the remarks in Dar es Salaam during the fourth edition of The 200 CEOs Business Forum, where he called on company executives, investors and financial institutions to make investment decisions that support Tanzania’s industrialisation and economic transformation.

“The implementation of the National Development Vision 2050 goes hand in hand with the Long-Term Development Plan for 2026/27-2050/51 and the five-year development plans, including FYDP IV,” he said.

“The basis for implementing these plans is the 70:30 investment framework, with the private sector expected to contribute a larger share of investment while the government continues creating an enabling environment.”

Tanzania is targeting an economy worth about $1 trillion and average annual per capita income of more than $7,000 by 2050, according to Mr Munde.

He said reaching those targets would require investment to move beyond traditional areas and focus on sectors capable of increasing productivity and adding value to the economy.

Mr Munde urged businesses to invest in domestic and regional value chains, technology and artificial intelligence, skills and innovation, while developing Tanzanian companies capable of expanding beyond the local market.

“I urge you to direct capital into productive sectors, build strong value chains within Tanzania and the East African region, responsibly use technology and artificial intelligence, invest in skills and innovation, and build Tanzanian companies capable of competing in African and global markets,” he said.

While acknowledging the importance of foreign direct investment (FDI) in bringing capital, technology, expertise and access to international markets, Mr Munde said the government also wanted more Tanzanians to participate directly in investment.

He said the government would continue supporting access to investment opportunities through government bonds, collective investment schemes, corporate bonds and the Dar es Salaam Stock Exchange (DSE).

The approach, he said, would help broaden participation in investment while increasing the domestic pool of capital available for economic activity.

Mr Munde said the government was also continuing reforms to make it easier to do business and invest in Tanzania.

He cited the first phase of the Business and Investment Environment Improvement Programme (MKUMBI I), launched in 2018, saying it helped simplify business procedures, improve investor services and reduce regulatory barriers.

Further reforms were being pursued to respond to changes in the economy, technology and business environment, he said.

Deputy Minister in the President’s Office for Planning and Investment, Dr Pius Chaya, said the government would continue helping businesses and investors access different sources of finance to expand their operations.

He said the ambition was to see businesses develop from small enterprises into medium-sized firms and eventually into large companies capable of competing in regional and international markets.

“The government has a role to create an enabling environment, while the private sector has a responsibility to build strong institutions, strengthen corporate governance, invest in people and technology, and develop businesses capable of competing beyond Tanzania’s borders,” Dr Chaya said.

He said Tanzania’s strategic location, natural resources, young population, improving infrastructure and access to regional and continental markets provided opportunities for businesses to expand.

Dr Chaya urged companies to look beyond Tanzania’s domestic market and pursue opportunities offered by East African and African markets.

He also called for closer cooperation between government and businesses to identify and address obstacles that continue to affect investment and business growth.

He said business forums should translate discussions into practical outcomes, including connecting investors with viable projects and identifying regulatory or other barriers that prevent businesses from expanding.

“Platforms such as these should go beyond discussions and networking and produce visible results in the economy, including connecting capital with real investment opportunities, strengthening public-private cooperation and identifying barriers affecting investment and business growth,” he said.