Mixed views greet Tanzania’s regional business expansion plan

While agreeing that this can be done, economists have cautioned, however, that the vision requires careful planning, strong domestic foundations and effective risk management.

Mr Mchechu said on Monday that there are Tanzanian institutions that have come of age and are capable of expanding to other countries.

“There are sectors, including banking, that we want to see expand beyond our borders. As you can see, many Kenyan banks operate in Tanzania,” Mr Mchechu said during a meeting with media editors in Dar es Salaam.

“We aspire to see our banks which have extensive networks in Tanzania establish a broader presence abroad,” he said and named some of banks in which the government has a stake as NMB Bank Plc, CRDB Bank Plc and TCB.

Mr Mchechu emphasised the importance of these banks having a wide network both domestically and internationally.

He also said the government is looking at investment opportunities in regional banks that have a strong presence in Tanzania.

“We are already working on strategies to achieve this,” Mr Mchechu added.

“However, the government understands that these institutions must be robust domestically before establishing a presence regionally. This will be implemented through reforms and rebuilding efforts.”

In anticipation of this initiative, the Office of the Treasury Registrar has also organised a CEOs’ forum in Arusha, which will be graced by President Samia Suluhu Hassan.

According to Mr Mchechu, the forum will feature trainers who will share insights on how to move forward, discuss regional and international investment opportunities for institutions, and deliberate on best practices for capital improvement.

This move by the government has drawn mixed views from economic experts.

Dr Lutengano Mwinuka of the University of Dodoma voiced cautious optimism.

“It’s possible, but not for all organisations. It’s important to exploit the existing domestic opportunities before looking abroad. For example, an organisation providing electricity services still faces many challenges within the country,” he said.

“Those organisations that are efficient can start to expand their services and borders, but those that are still under-performing should not take on additional burdens.”

Dr Mwinuka also highlighted the necessity of assessing how to operate outside the country, noting that different environments present unique challenges.

Prof Haji Semboja of the State University of Zanzibar told The Citizen that this is a need for independence and competence in management, particularly in avoiding “political appointments”.

“There is a great need to change the mindset of operations so that they can successfully operate abroad. I believe we can do it, but organisations need to stop thinking politically and start thinking like the private sector,” he said.

“Top management should be selected through competitive bidding, and the leaders of institutions should be qualified, knowledgeable, and capable.”

Prof Semboja’s sentiments reflect a broader call for reforms that prioritise merit and efficiency over political considerations, ensuring that Tanzanian state-owned enterprises are well-prepared to compete on the international stage.