Africa-Press – Tanzania. IN a bold move to reshape the future of Tanzania’s public sector, the Office of the Treasury Registrar (OTR) has come up with an ambitious five-year strategic plan aimed at turning state-owned enterprises into engines of growth and profitability by 2030.
In line with this plan, OTR has unveiled eight strategic targets to guide the transformation of public enterprises, signalling a renewed push to strengthen performance and accountability across the sector.
The plan, formally known as the OTR Five-Year Strategic Plan (2025/26–2029/30), outlines eight strategic goals designed to redefine how public enterprises operate and contribute to national development.
It emphasises efficiency, financial discipline and value creation, aligning with the broader vision of making Tanzania one of the five largest economies in Sub-Saharan Africa by 2050.
The Treasury Registrar, Mr Nehemiah Mchechu , said recently that this marks a clear shift from the traditional role of public enterprises as mere service providers to active drivers of economic transformation.
According to the plan, OTR intends to double the contribution of Public and Statutory Corporations (PSCs) to the national GDP from the current five to ten per cent by 2030.
It also seeks to raise the share of non-tax revenues from PSCs in total domestic revenue from 3.6 to five per cent.
Together, these measures are aimed at boosting fiscal resilience and making PSCs more self-reliant.
A central pillar of this transformation is the operationalisation of a Public Investment Fund, whose portfolio value is expected to reach $10 billion within the next five years, a fund envisioned to drive coordinated, high-impact investments across strategic sectors.
Analysts suggest that if effectively managed, this fund could reduce investment fragmentation and significantly improve the allocation of public resources, creating a stronger foundation for industrial growth.
The plan also targets a significant improvement in returns and financial performance, recognising that greater efficiency must be matched with tangible profitability.
As a matter of fact, the OTR aims to raise the average return on equity from five to ten per cent, while ensuring that all PSCs record annual revenue growth, up from the current fifty per cent that do so.
At the same time, the office seeks to reduce the reliance of public enterprises on government subsidies from 49 to 30 per cent and ensure that at least 30 per cent of these companies operate profitably by 2030.
These financial objectives complement the broader investment strategy, reinforcing the focus on self-sustaining and productive enterprises.
Mr Mchechu highlighted that achieving these targets will require not only stronger governance but also market-driven reforms and performancebased management systems.
Another key goal is to enhance Tanzania’s presence in global markets.
The OTR expects public enterprises to generate at least $500 million in foreign exchange earnings through exports by the end of the decade, which would further strengthen national fiscal stability.
Mr Mchechu emphasised: “These targets signal OTR’s unwavering commitment to unlocking the full value of PSCs as engines of economic growth, fiscal resilience and national competitiveness, positioning them to deliver tangible returns for the people of Tanzania by 2030.”
He went on to add: “Our focus is to shift public investments from mere ownership to productive assets that generate tangible benefits for all Tanzanians.”
This strategic focus aligns with Tanzania’s long-term ambitions under Dira 2050, as the country aims for a GDP of about $1 trillion within the next 25 years, translating to an average annual growth rate of 10.3 per cent, up from the current $85.98 billion.
Over the past decade, Tanzania has nearly doubled its economy, showing resilience in sectors such as industry, agriculture, mining, tourism and financial services, a performance that OTR hopes to build upon.
Experts argue that the new strategy represents a proactive attempt to consolidate these gains while addressing historical inefficiencies in public sector management.
The five-year plan also outlines five strategic focus areas that will guide implementation: Strengthening corporate governance, improving leadership and human capital development, enhancing operational efficiency, promoting resource mobilisation and management and optimising public investment to boost national competitiveness.
Each area was developed through an extensive consultative process involving sectoral analyses, stakeholder engagement and benchmarking against global best practices.
Analysts point out that success will largely depend on the government’s ability to enforce accountability, monitor performance rigorously and incentivise results-based management.
The plan acknowledges that, for decades, the performance of many public enterprises has been undermined by weak governance, capital constraints and heavy reliance on government subventions.
The new approach seeks to address these bottlenecks by introducing a professional, results-oriented management framework that prioritises profitability, accountability and innovation.
Experts suggest that the cultural shift from subsidy dependence to self-sustaining operations will be one of the biggest challenges for public enterprises.
Through the proposed Public Investment Fund, OTR envisions a coordinated vehicle that will channel resources into high-value projects, reduce inefficiencies and strengthen the industrial foundation of the economy.
This mechanism also links financial discipline to operational results, ensuring investments generate real returns.
The fund is also expected to help attract partnerships and co-investments from both local and international players, reinforcing Tanzania’s position as a competitive investment destination.
Mr Mchechu emphasised that OTR’s focus is not just on financial metrics but also on transforming public enterprises into sustainable, self-reliant institutions.
“We want to ensure that every public asset delivers value,” he said. “Our ultimate goal is to turn state ownership into shared prosperity.”
As the plan takes shape, OTR is calling for stronger collaboration across sectors, from public enterprise leaders and policymakers to the private sector and citizens, to ensure effective implementation.
“This is a shared journey toward transforming public wealth into national prosperity,” Mr Mchechu added. “We need efficiency, transparency and accountability at every stage.”
As Tanzania works towards realising Dira 2050, the OTR’s strategic plan stands out as a blueprint for sustainable transformation.
Beyond reforms, it represents a commitment to redefine the role of public enterprises as catalysts of inclusive growth, increased revenue and improved livelihoods for all Tanzanians.
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