Wanted: More protection for Sh92tr in public investments

The high-level working session, conducted yesterday brought together the Office of the Treasury Registrar, the Attorney General’s Office, the Solicitor General’s Office and the Chief Parliamentary Draftsman to review the governance, performance and legal foundations of state-owned enterprises (SOEs).

The event was themed “The Role of Key Government Legal Institutions in Safeguarding Public Investment.”

Chief Parliamentary Draftsman Onorius Njole emphasised the need to modernise outdated laws governing state-owned enterprises, warning that many were established under legal frameworks that no longer align with the country’s current or future development ambitions.

“Many of our institutions were created decades ago and are still governed by very old statutes that do not reflect today’s economic realities—or even the next 20 to 25 years,” he said.

Mr Njole added, “We need deliberate efforts to ensure our institutions rest on strong legal foundations.”

He noted that Tanzania’s legal system must evolve alongside the pace of public investment and corporate governance reforms.

“It’s possible that our current legal framework has not kept up with the speed of public investment expansion,” he said, calling the Kibaha session “a crucial opportunity for all key stakeholders to align on the government’s strategic direction for public investment”.

Solicitor General Ally Posi underscored the importance of specialised expertise and modern contract management systems to prevent legal disputes and safeguard government assets.

“Most of the government’s legal cases are linked to public corporations,” Dr Posi noted.

“That means we need to strengthen professional capacity and ensure that contracts are managed with modern tools and expertise to minimise exposure and losses.”

Deputy Attorney General Samwel Maneno echoed these concerns, warning that weak contract supervision could derail government projects or lead to costly disputes.

“If contract oversight is poor, government goals will either be delayed or fail altogether—resulting in unnecessary frustration and conflict,” he said.

Mr Maneno disclosed that the government signs between 15,000 and 20,000 contracts annually, underscoring the scale and complexity of monitoring obligations.

“Given such numbers, it is impossible to ensure effective follow-up without the help of technology,” he stressed.

“We are placing greater emphasis on deploying digital tools to strengthen contract management and compliance.”

Treasury Registrar Nehemiah Mchechu revealed that Tanzania now oversees more than 300 public institutions, signaling the expanding footprint of state-owned entities in key sectors such as energy, transport and finance.

“The Sh1.028 trillion in dividends and contributions collected this year, reflects strengthened governance and performance monitoring. There is tremendous potential,” he said.

The Treasurer outlined challenges in enhancing the economic role of public institutions and reducing their reliance on government funding.  To achieve this, his office has introduced sector-specific key performance indicators (KPIs) to monitor and support performance.

 “Our goal is for institutions to operate independently,” he said, aligning with Tanzania’s Vision 2025 for fiscal sustainability.

Looking ahead, Mchechu set a bold target of 2 trillion shillings in dividends for 2026, leveraging technology and legal reforms to sustain momentum.

The session reflected a growing consensus that Tanzania’s economic transformation must be anchored in a robust legal and institutional framework. 

Officials agreed that stronger inter-agency coordination between the legal and financial arms of government is essential to protect public assets and enhance returns on investment.