Tanzania turns to China for state-owned enterprise reform expertise

Dar es Salaam. Tanzania is seeking to learn from China’s experience in reforming state-owned enterprises (SOEs) as part of efforts to improve efficiency, profitability and accountability in public investments.

This was revealed in discussions between Chinese Ambassador to Tanzania Chen Mingjian and officials from the Office of the Treasury Registrar (OTR) in Dar es Salaam on Monday.

The talks were led by Treasury Registrar, Nehemiah Mchechu, and focused on investment cooperation, infrastructure development, technology transfer and institutional strengthening.

Mr Mchechu said Tanzania is interested in studying China’s SOE reform model, particularly through the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which oversees state enterprises in China.

He said the OTR, which supervises government investments, sees value in closer cooperation with Chinese institutions in public enterprise management and the delivery of major development projects.

“As we reform our institutions, we want to learn from countries that have successfully walked this path. China remains one of the best examples globally in transforming state-owned enterprises,” he said.

Mr Mchechu said several OTR-supervised institutions already work with Chinese partners, and there is scope to deepen cooperation further.

He said the OTR currently oversees 308 companies and institutions, including 252 in which the government holds majority shares.

These investments cover sectors such as aviation, energy, oil and gas, mining, transport and infrastructure.

He said ongoing reforms aim to reduce reliance on government subsidies, increase dividend contributions to the Consolidated Fund, improve accountability and grant more operational autonomy to public entities.

“Even if we want the economy to be driven by the private sector, an inefficient public sector will continue to be an obstacle to private sector growth,” he said.

Mr Mchechu also highlighted cooperation with China in maritime transport, mining and port operations, noting that these partnerships support key national projects.

He thanked the Chinese government for providing training opportunities to OTR staff, saying six officers were trained last year, with more expected this year.

Ambassador Chen said Tanzania and China have long-standing relations based on cooperation and mutual trust, citing President Samia Suluhu Hassan’s 2022 visit to China as a milestone in strengthening ties.

She said China is ready to share experience from its economic reforms and institutional transformation.

China’s Reform and Opening-Up policy, launched in 1978, had played a key role in transforming its economy, she said.

“We are ready to share these institutional experiences with our Tanzanian friends,” she said.

The envoy added that China remains committed to supporting Tanzania’s industrialisation agenda through trade, infrastructure development, technology transfer and capacity building.

She also said China would continue offering training for Tanzanian public servants in governance, digital transformation and economic management.

The meeting also discussed cooperation in mineral value addition, including plans to develop local smelting and processing industries for strategic minerals.

Both sides also exchanged views on the future of the Tanzania-Zambia Railway Authority (Tazara), which is marking 50 years of commercial operations this year.