Dr Mpango urges public sector to drive economy towards Vision 2050

Arusha. Vice President Philip Mpango has called on board chairpersons and chief executives of public institutions to adopt strong strategies that will accelerate Tanzania’s progress towards becoming an upper-middle-income economy by 2050.

Speaking at the Third Annual Summit of Board Chairpersons and Chief Executives of Public Institutions, Government Agencies, and Companies with Minority Government Shareholding in Arusha, Dr Mpango stressed that public entities, in partnership with the private sector, play a vital role in achieving the national development vision.

According to the International Monetary Fund (IMF), Tanzania’s economy is currently valued at around USD 85.98 billion. Under the National Development Vision 2050, the country aims to grow its economy to USD 1 trillion, moving into the upper-middle-income category. Realising this goal requires sustained economic growth of at least 10 percent annually over the next 25 years.

“Our economy has grown steadily at an average of 6.2 percent over the past two decades, but we must accelerate our efforts. This retreat provides a platform to deliberate on strategies that will significantly contribute to achieving our long-term aspiration of becoming an upper-middle-income country by 2050,” said Dr Mpango.

The Vice President emphasised the need to address financial leakages and resource mismanagement, which continue to undermine government revenues despite the adoption of systems such as GePG, TAUSI, and electronic fiscal devices.

“Public institutions must strengthen financial oversight, curb unnecessary expenditures, ensure prudent procurement, improve contract management, and utilise human capital effectively. These are fundamental steps towards creating a competitive and resilient economy,” he said.

Dr Mpango also urged chief executives to invest in research, innovation, and technological solutions to enhance productivity, improve service delivery, and raise the standard of living for Tanzanians. He further encouraged institutions to develop strategies that reduce reliance on government subventions while increasing contributions to the national budget.

The Vice President noted that the government has invested nearly Sh 86.29 trillion in state-owned enterprises, expecting not only financial returns but also improved public service delivery, sustainable employment, and a stronger contribution to national income.

“Effective governance of public institutions remains a government priority to ensure that these investments deliver tangible value and positively impact citizens’ lives,” Dr Mpango said.

He also highlighted the importance of strengthening international partnerships, which would open opportunities in global markets, technology transfer, and collaborative research.

Earlier, the Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo, reminded leaders that the government cannot achieve the country’s economic ambitions alone and must empower the private sector.

“Do not treat the private sector as a competitor but rather as a partner. Enable them to deliver services and create opportunities that will accelerate our economic transformation,” Prof Mkumbo said, noting that research, science, technology, and human capital development remain central to the national vision.

Treasury Registrar Nehemiah Mchechu reported that this year’s retreat brought together over 650 participants, including board chairpersons and CEOs from 35 companies where the government holds minority shares.

He revealed that government investment in public institutions has grown from Sh 65.19 trillion in 2019/20 to Sh 86.29 trillion in 2024/25, largely driven by expansion in strategic sectors such as energy and infrastructure. Non-tax revenue from public enterprises has also increased from Sh 637 billion in 2020/21 to Sh 1.028 trillion in 2024/25—an increase of 61 percent—with a target of Sh 2 trillion for the coming year.

During the summit, Dr Mpango launched a performance monitoring dashboard for public institutions, a digital platform designed to enhance transparency, track revenue performance, and provide real-time data for decision-making without requiring physical audits.

This year’s retreat was held under the theme “Building Sustainable Partnerships in a Globally Competitive Environment,” highlighting the role of collaboration in boosting efficiency, driving economic growth, and improving service delivery for citizens.