Public Institutions Urged Not to Be Obstacles to Investors

By OTR Correspondent

Pwani, Tanzania – 

The Government has called on public institutions to become key drivers of economic growth by creating a business-friendly and investment-friendly environment through efficient systems, reducing unnecessary bureaucracy, improving service delivery, and strengthening collaboration with the private sector in support of the implementation of Tanzania's Development Vision 2050.

The call was made on Friday evening by the Minister of State in the President's Office – Public Service Management and Good Governance, Ridhiwani Kikwete, while closing the third phase of a four-day Executive Leadership Orientation Programme for Chief Executives of Public Institutions, State Corporations, and Government Agencies at the Mwalimu Julius Nyerere Leadership School in Kibaha, Coast Region.

Addressing the executives, Kikwete said the success of Vision 2050 will not depend solely on the quality of policies and plans, but also on how effectively public institutions execute their responsibilities and deliver tangible results for citizens and the national economy.

He urged heads of public institutions to ensure the organizations they lead contribute to creating a conducive environment for business and investment by providing efficient services, embracing innovation, and fostering stronger partnerships with the private sector.

According to Kikwete, public institutions should serve as facilitators of development rather than barriers to investment, noting that the quality of public services plays a crucial role in attracting investors, enhancing economic competitiveness, and creating new development opportunities.

He emphasized that the performance of Chief Executives will be measured by their ability to eliminate obstacles that hinder business and investment, improve service delivery, increase productivity, and build accountable institutions.

"Your leadership will not be judged by good plans alone, but by your ability to implement them, remove unnecessary bureaucracy, improve service delivery, increase efficiency, and build institutions that are accountable to the people," Kikwete said.

He added that every public institution should recognize that its decisions have a direct impact on the country's business and investment climate, stressing that every service delivery process should build investor confidence and contribute to national economic growth.

"Your primary responsibility is to ensure that Vision 2050, which officially came into implementation on July 1 this year, is translated into tangible results through the institutions you lead," he said.

Kikwete further expressed his expectation that the implementation of Vision 2050 would become a permanent agenda in the daily decision-making and operations of public institutions.

He said institutional plans, strategies, and implementation efforts must align with the goals of Vision 2050 in order to accelerate national development.

"When you perform your duties with professionalism, accountability, and efficiency, positive outcomes will be realized and contribute to achieving the nation's vision," he stressed.

The minister also encouraged Chief Executives to strengthen cooperation with the private sector, development partners, and citizens to enhance the value of services provided by their institutions.

He said such collaboration would help establish systems that enable businesses to operate more efficiently, ensure investors receive timely services, and allow public institutions to play a greater role in driving economic growth.

Kikwete also urged public institutions to embrace digital systems, strengthen domestic revenue collection, improve good governance, and ensure that institutional performance indicators reflect the objectives of Vision 2050.

He noted that the success of the leadership programme would not be measured by the number of certificates awarded, but by the positive changes participants implement within their institutions, including improved service delivery, efficient use of public resources, increased revenue generation, and greater accountability.

Speaking at the event, Dr. Fred Msemwa, Permanent Secretary in the Ministry of Planning and Investment responsible for Investment, said the training comes at a critical time as Tanzania embarks on major economic reforms aimed at expanding the country's economy to nearly ten times its current size through the implementation of Vision 2050.

He said the current environment requires visionary, innovative, and accountable leaders capable of translating national aspirations into measurable economic and social outcomes.

"I am confident that the knowledge you have gained through this programme, together with the experience you have shared, will enhance your ability and readiness to perform your responsibilities more effectively," he said.

Dr. Msemwa added that during this period of major economic transformation, visionary and accountable leadership will be essential in achieving the objectives of Vision 2050, emphasizing that public institutions have a unique role in creating an environment that promotes investment, productivity, and national competitiveness.

Representing the Permanent Secretary in the President's Office – Public Service Management and Good Governance, Ibrahim Mahumi said strengthening the leadership capacity of Chief Executives is fundamental to improving public service delivery and enabling institutions to effectively implement national development priorities.

Mahumi said the executives have a responsibility to build a culture of professionalism, accountability, and results-oriented performance within the institutions they lead, stressing that strong leadership is the foundation of effective public institutions.

He added that the knowledge and experience gained through the programme should be translated into practical action by improving executive decision-making, strengthening governance systems, and enhancing the management of public resources.

Providing the perspective of institutions supervised by the Office of the Treasury Registrar, Treasury Registrar Nehemiah Mchechu said ongoing reforms within public institutions are already producing positive results through improved service delivery, greater economic efficiency, and stronger institutional performance.

He noted that the Government, through the Office of the Treasury Registrar, currently oversees 308 public institutions and companies in which it holds either full or minority ownership, with total investments valued at TSh92.3 trillion, making them key pillars in implementing Vision 2050 and driving national economic growth.

According to Mchechu, the ongoing reforms demonstrate that these institutions have the potential to become major engines of economic growth if they continue to be managed with accountability, innovation, and sound resource management.

"Over the past few years, public institutions have made significant progress in improving service delivery, increasing economic efficiency, and strengthening overall institutional performance," he said.

He added that these achievements have enabled some institutions to reduce their dependence on government budget support, reflecting improved financial sustainability and a greater contribution to national development.

"We are continuing to drive a special reform agenda so that, over time, more institutions can become financially self-sustaining, except those whose mandates require continued government subsidies," he said.

Mchechu emphasized that the success of these reforms should not be measured solely by financial figures but also by changes in mindset, organizational culture, and the ability of institutional leaders to manage transformation.

"For me, success is not just about numbers. It is about a new mindset, a new culture within our Boards and among our Chief Executives. We are witnessing remarkable commitment, strong leadership capacity, and a genuine desire for change and success," he said.

He said this commitment has strengthened ownership of the reform agenda among leaders of public institutions and laid a solid foundation for achieving Vision 2050 through efficient, financially sustainable institutions that make a greater contribution to Tanzania's economic growth.

Since its establishment in 2024, the Executive Leadership Orientation Programme for Chief Executives of Public Institutions has benefited approximately 244 Chief Executives, with 57 participants attending this year's session.

The programme is jointly organized by the Office of the Treasury Registrar and the UONGOZI Institute as part of the Government's efforts to build capable leaders who can effectively manage public institutions, strengthen good governance, improve public service delivery, and ensure that Vision 2050 is translated into tangible economic and social development outcomes.