Treasury Registrar, Fitch Ratings Assess Reforms in Public Institutions

By OTR Correspondent

Dar es Salaam. The Office of the Treasury Registrar (OTR) on Tuesday, August 11, 2026, held discussions with Fitch Ratings Ltd as part of the second 2026 review of Fitch Ratings’ assessment, in a process involving various government institutions.

The discussions aimed to provide Fitch Ratings analysts with detailed information on Tanzania’s economic performance, implementation of fiscal and monetary policies, as well as the Government’s strategies for managing public debt.

For OTR, the discussions focused on the performance of public institutions, ongoing reforms, financial risks, and financial flows between the Government and public institutions.

Earlier this year, Fitch Ratings affirmed Tanzania’s ‘B+’ long-term foreign-currency issuer default rating, citing strong economic growth prospects and the Government’s ability to manage fiscal challenges following the 2025 General Election.

Fitch estimates that Tanzania’s economy will grow by 6 percent in 2026, above the 4.5 percent average for countries rated ‘B’.

Against this backdrop, Treasury Registrar Mr Nehemiah Mchechu, who led the OTR team, briefed the Fitch team on reforms aimed at improving the performance and efficiency of public institutions, strengthening good governance and accountability, and reducing their dependence on the Government.

Mr Mchechu said OTR’s reform agenda over the past two years has placed greater emphasis on leadership, performance management and accountability, including improving the quality of boards and management teams and strengthening board assessments to identify skills gaps.

He said the results of these reforms are increasingly reflected in the financial contribution of public institutions to the Government.

During the financial year ended June 30, 2026, institutions under the Treasury Registrar contributed approximately Sh1.881 trillion to the Government through dividends and other contributions, compared with Sh1.028 trillion in the preceding financial year.

“What we are seeing is a willingness by institutions to start contributing, or to increase their contributions, to the Government,” Mr Mchechu said.

He added that institutions that continue to require Government support are expected to demonstrate how they are reducing such dependence.

Mr Mchechu said restructuring and capital investment measures undertaken in institutions such as Tanzania Electric Supply Company (TANESCO) and the Tanzania Petroleum Development Corporation (TPDC) have helped reduce their financial obligations and strengthen their financial position.

The Fitch team also sought information on plans to list some public institutions on the capital market.

Mr Mchechu said Tanzania Commercial Bank (TCB) is among the institutions being prepared for listing on the capital market through an Initial Public Offering (IPO), while the National Insurance Corporation (NIC) is undergoing assessment for possible listing.

The long-term objective is to restructure, strengthen and list a number of suitable public institutions on the capital market before 2030.

Mr Mchechu also said OTR has granted greater operational autonomy to 58 public institutions, allowing them to carry out their responsibilities in accordance with their mandates without interference in the execution of their duties.

He said the reforms have also strengthened OTR’s internal capacity, particularly in business analysis, enabling the Office to conduct more in-depth assessments of public institutions’ budgets, investments and strategic plans.

The Treasury Registrar said cooperation between OTR and ministries responsible for various sectors has also improved, with the relationship increasingly focused on ensuring that public institutions implement Government priorities.

“It is no longer a matter of saying, ‘you should do this and not that,’ but rather, ‘how do you ensure that this institution implements what H.E. the President wants?’” Mr Mchechu said.

The Fitch delegation was led by Mr José Mantero, Associate Director and lead analyst responsible for Tanzania. He was accompanied by Ms Gaimin Nonyane, Director in Fitch Ratings’ Sovereign and Supranational Group, and Mr Gerard Arabian, Vice President and Sovereign Advisor in the Public Sector Group of Corporate Banking.

Mr Mantero said Fitch sought to gain a broader understanding of OTR’s reform agenda for public corporations, particularly efforts to improve institutional performance and manage debt and financial flows between the Government and public institutions.

He said the review was also assessing the impact of ongoing developments in the Middle East on Tanzania, including potential effects on Government finances, the balance of payments and inflation arising from changes in oil and fertilizer prices.

Commenting on the positive fiscal position resulting from the Government’s financial relationship with public institutions, Mr Mantero said: “This is very good news for the Government’s fiscal position.”

For her part, Ms Nonyane expressed interest in the increased contributions from public corporations, noting that the recent contribution was equivalent to approximately 0.8 percent of Gross Domestic Product (GDP).

She also sought to understand how the situation had changed from a period when some public corporations in Tanzania faced financial challenges.

The trend raises optimism that ongoing reforms will further strengthen the performance and financial sustainability of public institutions, increase their contribution to the economy and Government revenues, and support Tanzania’s broader efforts to maintain fiscal stability and improve its credit standing.

Information provided during the OTR-Fitch Ratings discussions will contribute to Fitch’s broader assessment of Tanzania’s ability to meet its financial obligations, as part of the second 2026 review of the country’s sovereign credit rating.