Dar es Salaam. A new review of the national business blueprint has revealed 56 major challenges that continue to slow private sector operations across 11 key areas, with mistrust between government institutions and businesses flagged as a key obstacle to faster economic growth.
At the opening of the review meeting for Blueprint II on Friday, 27 March 2026, Zanzibar President Dr Hussein Mwinyi highlighted the achievements under the first blueprint, which included removing more than 600 levies and fees and repealing 94 restrictive laws.
Dr Mwinyi called on the private sector to actively participate in Blueprint II to ensure their recommendations are fully incorporated. He said the first blueprint had already facilitated the registration of over 900 projects in 2024, generating $9.3 billion in revenue.
"To achieve a $1 trillion economy by 2050 and an average per capita income of around $7,000 (Sh18.2 million), Tanzania needs sustained annual GDP growth of at least 10 per cent from 2026 onwards,” Dr Mwinyi said. “The private sector will be the engine driving this growth through investments in industry, modern agriculture, the blue economy, energy, ICT, and high-value services.”
He stressed that the government alone cannot meet these ambitions and that creating an enabling business environment is crucial.
The Minister of State in the President’s Office (Planning and Investment), Prof Kitial Mkumbo, revealed that Blueprint II identifies 246 areas requiring urgent reform to remove barriers for entrepreneurs nationwide. He warned that mistrust between the private sector and public institutions remains a major challenge.
“There is still finger-pointing: the private sector feels the government has not created a conducive environment, while some public institutions see them as tax evaders. Blueprint II must address this gap,” he said.
Prof Kitila said that implementation will focus on speed and decisive action. Regulatory institutions are expected to shift from mere supervision to actively enabling business operations, while also promoting a change in mindset to strengthen the economy and stimulate private sector investment.
A represetantive the Tanzania Private Sector Foundation (TPSF), Ms Juliana Pallangyo, highlighted the private sector’s critical role in achieving Vision 2050, noting that it is expected to contribute more than 70 per cent of the country’s economic growth.
She praised the first blueprint for reducing multiple taxes but said more work is needed to strengthen the business environment. “While progress has been made, Blueprint II is expected to bring even greater improvements, creating a more predictable and enabling environment for investors,” she said.
The draft also addresses regulatory differences between Zanzibar and Mainland Tanzania, aiming to harmonise procedures and remove barriers that hinder smooth business operations.
“We, as the private sector, will continue collaborating with the government to ensure economic growth and the achievement of Vision 2050, where our contribution remains central,” Ms Pallangyo added.
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