Mwinyi wants public institutions dependent on government subsidies abandoned

Unguja. Zanzibar President Hussein Ali Mwinyi has said the time has come to move away from public institutions that depend on salaries and subsidies from the central government.

Dr Mwinyi made the remarks on Saturday, May 23, 2026, while opening the Forum for Board Chairpersons and Heads of Public and Private Institutions in Zanzibar.

He said the arrangement of the Treasury financing such institutions had become outdated.

“There are still many institutions that receive salaries from the central government, while others depend on subsidies. The time has now come to move away from such institutions,” he said.

Emphasising the matter, Dr Mwinyi cited China as an example, saying government institutions there operate no differently from those in the private sector.

“There are lessons to learn from China on how government institutions are managed. You cannot distinguish them from private institutions because they perform efficiently. Therefore, the era of depending on the Treasury as the main source of funds to run institutions has passed,” he said.

Dr Mwinyi said institutions must now generate revenue and submit dividends to the Treasury, adding that this was possible because several banks in Zanzibar were already performing well under such a model.

He said the current situation had contributed to many corporations failing to provide dividends and contributions to the government effectively.

However, he said the government would continue creating a conducive environment to facilitate inclusive economic growth for both public and private institutions.

“We will continue standing with you shoulder to shoulder in bringing change and achieving the government’s intention of implementing economic and social reforms. We will ensure this goal is achieved through close supervision of these corporations,” he said.

Speaking about the forum’s theme, “Accelerating Sustainable Growth in Leadership Transformation and Strategic Partnership,” Dr Mwinyi said it encouraged efforts to accelerate sustainable development.

He used the opportunity to direct the Office of the Treasury Registrar to continue supervising public institutions with boards and councils in order to strengthen performance and enhance the contribution of corporations towards national economic growth.

 Deputy Minister for Finance and Planing, Mr Hamad Omar, said the forum was organised to encourage institutions to move beyond ordinary performance and achieve major results within a short time, noting that the world no longer waits for anyone.

He also stressed the importance of supervising performance contracts that would measure the efficiency of leaders and institutions annually and produce results that encourage rapid implementation and transformation from paperwork to action on strategic projects.

Zanzibar Treasury Registrar Waheed Muhammad Ibrahim Sanya said the forum was important in improving institutional performance and fulfilling responsibilities, particularly in implementing the vision of senior government leaders through innovation and efficiency.

Equity Bank chief executive officer, Mr James Mwangi, said Zanzibar’s economy was growing at an attractive rate of 8.7 percent and ranked among the five fastest-growing economies globally.

“It is clear that despite the achievements already made, there is still ambition to continue expanding the economy, which is why the phrase ‘accelerating growth’ is appropriate. I share that vision because we are living in a unique moment in history,” he said.