Tanzania is pushing for sweeping reforms in companies where it holds minority stakes as part of a broader strategy to accelerate economic growth and meet its long-term development targets.

The government has issued eight strategic directives aimed at improving efficiency, transparency and profitability in partially state-owned companies, as it seeks to strengthen public investment outcomes under the National Development Vision 2050.

Finance Minister Khamis Mussa Omar said the measures are designed to ensure these firms play a more active role in transforming the economy, which authorities aim to expand from about $85 billion to $1 trillion by 2050.

Speaking at a conference of directors of companies with minority government shares in Arusha, Omar said stronger governance and performance in such firms will be critical to achieving Tanzania’s long-term growth ambitions.

Focus on Governance and Efficiency

The directives place particular emphasis on improving corporate governance standards, enhancing operational efficiency and increasing returns from public investments.

Company boards and management teams have been instructed to align their strategies with national development priorities while remaining responsive to global economic trends.

Authorities are also pushing firms to adopt digital technologies to strengthen transparency, improve decision-making and build public confidence in governance systems.

Shift Toward Strategic Leadership

Omar called for a transition from routine oversight to forward-looking strategic leadership, urging directors to anticipate risks and opportunities in an increasingly complex economic environment.

The government sees this shift as essential to unlocking the full value of companies where it holds minority stakes, many of which operate in key sectors of the economy.

Boosting Non-Tax Revenue

The reforms are also linked to efforts to increase government revenue outside traditional taxation.

Under Vision 2050, Tanzania aims to raise the contribution of non-tax revenue from 3% to 10% within five years, equivalent to roughly 5 trillion Tanzanian shillings annually.

Officials say achieving this target will require a significant change in mindset, with greater emphasis on innovation, accountability and performance-driven management across state-linked enterprises.