Finance Minister Khamis Mussa Omar has called for closer cooperation between the government, financial institutions and the private sector to mobilise domestic savings and channel them into productive investments needed to achieve Tanzania’s Development Vision 2050.
Mr Omar said the scale of investment required under the government’s development plans meant Tanzania could no longer depend mainly on public finances, foreign borrowing and development assistance to fund economic transformation.
He was speaking on Wednesday at the monthly dialogue of the CEO Roundtable of Tanzania (CEOrt) at Hyatt Regency Dar es Salaam.
Tanzania’s Vision 2050 targets an economy worth about $1 trillion and per capita income of more than $7,000 by 2050, with the private sector expected to play a leading role in driving industrialisation, job creation and economic growth.
Mr Omar said the Fourth Five-Year Development Plan (FYDP IV) would require about Sh477 trillion in investment, of which the private sector is expected to contribute 70 percent, or Sh324.49 trillion.
“Tanzania cannot achieve its development goals by relying solely on the government budget, external borrowing or development assistance. We must strengthen our ability to mobilise and deploy domestic and private-sector capital,” he said.
The minister said the 70:30 investment model under the country’s long-term development framework effectively placed businesses at the centre of financing economic expansion.
Mr Omar said Tanzania’s financial sector had remained resilient despite global economic challenges, supported by economic stability, continued economic activity and reforms undertaken in the sector.
Private-sector credit has been growing at an average rate of more than 20 percent, while non-performing loans have remained below the recommended five percent threshold, he said.
The financial sector’s contribution to the economy has also increased to 4.3 percent of GDP, while formal financial inclusion among adults has reached 76 percent.
Mr Omar said these developments provided an opportunity to increase the amount of domestic savings channelled into long-term investments.
“These developments provide a strong foundation for increasing the capacity of the financial system to mobilise savings and channel them into productive investment,” he said.
The government is also finalising the approval of the second phase of the Blueprint for Regulatory Reforms, known as MKUMBI II.
The initiative is expected to address changes in the economic, technological and business environment while continuing reforms aimed at simplifying regulations and improving the investment climate.
Mr Omar also urged Tanzanians to play a greater role in financing the country’s economic growth through domestic investment.
He said foreign direct investment (FDI) remained important because it brought capital, technology, expertise and access to international markets. FDI rose from $1.656 billion in 2024 to $1.718 billion in 2025, representing a 3.7 percent increase.
However, he said Tanzania also needed to strengthen domestic investment so that citizens could participate more directly in the country’s economic opportunities.
He called for deeper participation in the capital markets, arguing that more developed and liquid markets could provide long-term financing for businesses and development projects.
The government, he said, would continue creating a supportive legal and regulatory framework for new capital-market products while encouraging citizens to invest in government securities, collective investment schemes and the stock market.
Tanzania already has a growing banking sector, pension funds and other financial institutions with expanding assets, as well as increasingly diversified capital markets, he said.
CEOrt Board Chairman David Tarimo said the dialogue focused on ways of converting savings available in the country into capital for economic expansion and improving access to domestic financing.
He said Vision 2050 placed significant responsibility on the private sector, with FYDP IV giving greater emphasis to private investment than previous development plans.
“The forum provided an opportunity to listen to the government’s plans for implementing the Vision, while members also shared views and recommendations aimed at supporting the achievement of those goals,” Mr Tarimo said.
He said CEOrt would continue working with the government to identify areas requiring reform and support improvements in regulations and procedures.
The objective, Mr Tarimo said, was to create a business environment that is predictable, simpler and less costly, particularly for small businesses.
The government’s push to mobilise domestic capital comes as Tanzania seeks to finance the infrastructure, industrialisation and private investment required to meet the long-term targets set under Vision 2050.