Tanzania targets self-reliant, profitable public entities by 2050

Dar es Salaam. By 2050, Tanzania envisions state-owned enterprises (SOEs) that are commercially driven, transparent, competitive, self-reliant, and profitable, attracting investment and partnering fully with the private sector to accelerate economic growth.

This ambition is outlined in the Tanzania Development Vision 2050, launched by President Dr Samia Suluhu Hassan on Thursday, July 18, 2025, in Dodoma, during a ceremony attended by senior government officials and private sector stakeholders, including Treasury Registrar Nehemiah Mchechu.

The Office of the Treasury Registrar (OTR) has been tasked with implementing this aspect of the Vision, in line with its mandate to oversee investments in public institutions.

Currently, the OTR supervises 252 public entities, of which 217 are service-oriented while 35 operate commercially.

According to the Vision document, government subsidies extended to many SOEs have eroded competitiveness, creating an uneven playing field between public and private firms.

This imbalance has, in turn, affected the private sector’s efficiency and its broader contribution to national development.

“These enterprises (public entities) have been receiving government subsidies, which undermines fair competition with private firms. This situation has weakened the private sector’s ability to drive national development effectively,” states the vision document.

The Vision 2050 calls for a clearly defined investment framework outlining the roles and areas of focus for both public commercial enterprises and private sector actors to spur economic transformation and ensure sustainable development.

“We must build a public sector that enables and facilitates business and investment. By doing so, we will develop a competitive, strong, inclusive, and accountable private sector that significantly contributes to social and economic development,” the document adds.

Achieving this ambition will require wide-ranging reforms in policy, governance, and operations to define strategic public investment areas and open up more space for private sector participation.

The Vision also underscores the need for a public service that supports private sector growth by fostering a business- and investment-friendly environment.

Tanzania aims to rank among Africa’s top three investment destinations and become one of the continent’s most business-friendly countries.

“A vibrant commercial sector is essential for building a strong, inclusive, and competitive economy,” the Vision notes.

The coexistence of small, medium, and large enterprises—both local and foreign-owned—alongside competitive public commercial entities is expected to increase Tanzania’s participation in global markets.

This, the Vision states, will also drive innovation, bolster economic resilience, and foster sustainable business growth that adapts to evolving market dynamics.