The government saved TZS13.77 billion between 2019/20 and 2021/22 by clearing its cargo through public institutions and government systems instead of using private clearing agents, highlighting the potential for further savings from tighter supply chain management.
The saving was recorded through the clearance and removal of government cargo from ports, airports and border points, according to experts from the Ministry of Finance.
They presented the figures during a seminar for journalists and social media content creators in Morogoro on the implementation of the 2025 National Supply Chain Management Policy.
The experts said the money saved would otherwise have been spent on clearing government cargo through private agents.
The development comes as the government seeks to improve efficiency in the management of public resources while reducing costs associated with the movement of goods imported for government use.
Under the current arrangement, the Government Procurement Services Agency (GPSA) is responsible for the clearance and removal of government cargo.
The Tanzania Shipping Agencies Corporation (TASAC), meanwhile, handles the clearance of mineral concentrates, chemicals used by mining companies, government trophies and live animals.
The Medical Stores Department (MSD) is responsible for clearing and removing health products imported for use in public health facilities.
The government has also introduced and expanded the use of electronic systems to improve the management of cargo clearance and provide better access to information.
These include the Tanzania Customs Integrated System (TANCIS) and the GPSA Integrated Management Information System (GIMIS).
The systems provide information on the importation, clearance and removal of government cargo, potentially reducing paperwork and improving coordination among institutions involved in the process.
The ministry experts identified improved infrastructure, greater use of electronic systems and increased government revenue as opportunities that could further improve cargo clearance and removal.
If effectively implemented, the measures could reduce the time and cost involved in handling government cargo while improving efficiency across the public supply chain.
However, the government still faces challenges in coordinating the clearance and removal of cargo, with officials pointing to weaknesses that can increase costs and delay the delivery of goods.
One of the challenges is the high cost of cargo clearance and removal, particularly where charges do not reflect prevailing market prices.
Delays in clearing cargo can also result in deterioration of goods and financial losses to the government.
The challenges have raised the need for continued improvements in the systems and procedures governing government cargo clearance, particularly to ensure that the savings already achieved are sustained.
The government is also working to strengthen controls over goods, equipment, services, construction works and other assets received by public institutions.
Under the Public Procurement Act, institutions are required to establish professional committees with the necessary expertise and experience to conduct technical inspections before accepting goods, equipment, services, construction works or other assets.
The inspections are intended to ensure that items delivered meet the required quality standards and specifications.
Electronic systems, including the Government Accounting System (MUSE) and the National e-Procurement System (NeST), have also improved the recording of goods, equipment, services, construction works and assets received and distributed to users.
The systems provide an opportunity to strengthen tracking and accountability throughout the public supply chain, officials said.
The TZS13.77 billion saving recorded over the three-year period demonstrates the financial impact of how government handles its supply chain operations.
Officials said continued improvements in coordination, digital systems, infrastructure and cost controls could help the government reduce unnecessary expenditure while ensuring public institutions receive goods and services more efficiently.