The essential commodity. She also stressed the need to generate foreign currency to bolster the nation’s reserves, urging institutions to review strategic plans and collaborate in areas that can quickly generate foreign exchange. President Samia observed that State-Owned Enterprises (SOEs) where the government held minority share soften outperformed fully government owned institutions. She suggested considering the sale of shares in underperforming institutions to reduce management burdens, allowing capable parties to manage while the government collects taxes and dividends. “If there are government owned institutions that are underperforming, we should consider divesting our 100 per cent shares to lessen the management burden by allowing capable entities to run these institutions,” she emphasized.
The President warned against politically motivated investments that fail to deliver returns and called for accountability and responsible management of public funds. She clarified the purpose of the Sovereign Wealth Fund, emphasizing its role in securing capital for future generations and not for immediate use.
President Samia underscored the need for ongoing reforms, despite the challenges posed by human resistance to change, to ensure the efficiency and profitability of SOEs. Highlighting international business practices, she urged public institutions to support the private sector in reaching global markets and stressed the importance of domestic efficiency as a precursor to international investment. Tanzania government owns 236 parastatals. The government’s budget for the 2023/2024 fiscal year is approximately 76 trillion Tanzania shillings and part of the budget is allocated to support the operations and development of these parastatals.
