The government has introduced eight key strategic directives aimed at enhancing the performance of companies in which it holds minority shares, as part of broader efforts to accelerate Tanzania’s transition to an upper-middle-income economy under the national development framework, 'Dira 2050'.
The ambitious long-term vision seeks to expand the country’s economy from approximately $85 billion to $1 trillion by 2050. Achieving this target will require stronger returns from public investments, particularly from minority interest companies where the government plays a partial ownership role.
Driving Performance Through Strategy and Governance
Speaking at the opening of the three-day Minority Interest Directors Forum 2026 (MIF 2026) in Arusha, the Minister for Finance, Khamis Mussa Omar, emphasized that the directives are designed to ensure these companies operate with greater strategic focus, transparency, and profitability.
He underscored the importance of aligning corporate strategies with national development priorities and global economic trends, enabling companies to remain competitive while supporting inclusive economic growth.
The minister also called for increased adoption of technology to enhance transparency, strengthen governance systems, and build public trust.
A Shift Toward Forward-Looking Leadership
A central theme of the directives is the need for forward-looking leadership. Boards and executive teams are urged to anticipate risks, respond proactively to emerging opportunities, and adapt to the demands of an increasingly competitive global economy.
The government is also encouraging stronger collaboration among companies to facilitate knowledge sharing, unlock new business opportunities, and generate collective impact.
At the same time, reinforcing governance frameworks grounded in accountability, transparency, and ethical leadership remains a top priority to ensure public investments deliver sustainable returns.
Focus on Results and Data-Driven Decision Making
Companies have been urged to adopt performance-driven strategies that enhance operational efficiency, improve profitability, and maximize value for both shareholders and the government.
The minister highlighted the importance of strengthening economic and competitive intelligence, noting that informed decision-making based on reliable data and market insights is critical for improving productivity and maintaining competitiveness in both regional and international markets.
Strengthening Public-Private Partnerships
The government reaffirmed its commitment to fostering stronger collaboration with the private sector, recognizing it as a key driver of investment and national development.
Under 'Dira 2050', the government aims to increase the contribution of non-tax revenue to the national budget from 3 percent to 10 percent within five years — equivalent to approximately Sh5 trillion annually.
“This calls for a deliberate shift in mindset and operational approaches — from traditional oversight to foresight-driven leadership that prioritizes innovation, agility, and anticipation,” the minister noted.
He added that optimizing investments in minority interest companies will be essential to achieving maximum financial and economic returns.
Leadership Accountability and Institutional Transformation
The minister challenged directors and executives to embrace change and take full responsibility for improving performance and ensuring long-term sustainability.
“We must move beyond conventional boardroom practices and adopt proactive approaches to identifying challenges and implementing sustainable solutions,” he said, urging leaders to develop actionable strategies that will enhance competitiveness and long-term value creation.
Government Commitment to Business Environment Reforms
The Permanent Secretary in the President’s Office responsible for Investment, Fred Msemwa, reiterated the government’s commitment to improving the business environment through policy and legal reforms.
He emphasized that a strong private sector is critical to achieving the goals of 'Dira 2050'.
A Platform for Strategic Dialogue
In his opening remarks, Treasury Registrar Nehemiah Mchechu described the forum — now in its third edition since its launch in 2024 — as a vital platform for dialogue on governance, performance, and the strategic role of minority interest companies in Tanzania’s economic transformation.
The theme of this year’s forum, “From Oversight to Foresight: Advancing Agile and Innovative Leadership under Transformation Pressures,” highlights the need for leaders to move beyond traditional supervisory roles and embrace forward-thinking, adaptive leadership.
“In today’s rapidly evolving economic and technological environment, leadership must not only manage the present but also anticipate the future,” he said.
Growing Impact of Minority Interest Companies
Mchechu noted that government investment in minority interest companies has grown significantly over the past five years, rising from Sh821 billion to approximately Sh3.6 trillion — a clear indication of increasing confidence in public-private partnerships.
Dividend contributions have also surged by 357 percent over the same period, from Sh58 billion to Sh266 billion.
The MIF 2026 forum has brought together around 200 participants, including board directors, chief executive officers, policymakers, and experts from within and outside Tanzania.
Discussions are focused on strengthening governance, enhancing performance, and ensuring that minority interest companies play a more impactful role in driving Tanzania’s sustainable economic development.
As Tanzania advances toward its *Dira 2050* goals, the success of these companies will be critical in shaping a resilient, competitive, and innovation-driven economy.
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