Government issues eight directives to drive minority companies toward Dira 2050

ARUSHA-The government has issued eight strategic directives aimed at strengthening the performance of government minority interest companies and accelerating Tanzania’s journey towards upper-middle-income status under the national development blueprint, Dira 2050.The long-term national vision seeks to transform Tanzania’s economy from its current size of about $85 billion to $1 trillion by 2050, a goal that requires stronger performance of public investments, including companies in which the government holds minority shares.

Opening the three-day Minority Interest Directors Forum 2026 (MIF 2026) in Arusha on Monday, March 16, 2026, the Minister for Finance, Hon. Amb. Khamis Mussa Omar, said the directives are intended to ensure that companies in which the government holds minority shares operate more strategically, transparently and profitably while contributing more meaningfully to national economic transformation.

During the form organised by the Office of the Treasury Registrar (OTR), he said boards and management must align their corporate strategies with national development priorities and global economic trends so that investments respond to evolving markets while supporting inclusive growth.

The Minister also called on companies to leverage technology to strengthen transparency, build public trust and improve governance systems.

The directives further emphasise the need for forward-looking governance that enables boards and executives to anticipate risks and respond to emerging opportunities in an increasingly competitive global economy.

In addition, the government is encouraging stronger collaboration and partnerships among companies so that institutions can share expertise, unlock new opportunities and generate greater collective impact.

According to the Minister, reinforcing strong governance frameworks that uphold accountability, transparency and ethical leadership remains central to ensuring public investments deliver sustainable returns.

He said companies must adopt performance-driven strategies that enhance operational efficiency, improve profitability and ultimately deliver greater value to shareholders and the Government.

Hon. Omar also stressed the importance of strengthening economic and competitive intelligence so that decisions are guided by reliable market insights and data, enabling companies to improve productivity and remain competitive in regional and international markets.

He further highlighted the importance of constructive engagement between the government and the private sector, noting that strong partnerships are critical in unlocking investment opportunities and accelerating national development.

As you are rightly aware, the government through Dira 2050 is committed to increasing the contribution of non-tax revenue in the national budget from the current three percent to ten percent within five years, translating to an ambitious target of raising Sh5 trillion annually.

“This calls for a deliberate shift of mindsets and modes of operation from traditional oversight towards foresight-driven leadership that emphasises anticipation, agility and innovation,” said the minister.

Adding: “This should go hand in hand with optimisation of every investment in your companies to yield maximum financial and economic returns. Without such a shift, we will be unable to achieve the aspirations enshrined in Dira 2050.”

He urged directors and executives to embrace forward-looking leadership and actively address challenges affecting the performance of their companies.

“We ought to embrace change in our boardrooms and be forward-thinking and proactive in examining challenges impeding the performance of our companies and identifying sustainable solutions that will ensure they remain competitive and deliver the expected shareholder value,” he challenged.

The Minister further challenged leaders of minority interest companies to take full responsibility for improving performance and long-term sustainability.

“I challenge each of you to fully embrace your responsibilities as leaders of minority interest companies. We must emerge from this forum with clear, actionable strategies that will significantly improve the performance of the companies we oversee while ensuring their longevity and continued prosperity,” he said.

“We must also aspire and work towards ensuring that more minority interest companies develop, evolve and, most importantly, generate sustainable financial returns for the benefit of shareholders, the government and the country at large.”

For his part, the Permanent Secretary in the President’s Office responsible for Investment, Dr Fred Msemwa, reaffirmed the government’s commitment to continue improving the business environment in order to strengthen the private sector.

“We will do whatever it takes, including reviewing legal and policy frameworks, as we recognise that the private sector is a key driver in enabling Tanzania to realise the goals of Dira 2050,” he underscored.

Earlier, in his welcoming remarks, the Treasury Registrar, Mr Nehemiah Mchechu, said the forum-now in its third edition since its inception in 2024 -has become an important platform for leaders of minority interest companies to reflect on governance, performance and their strategic role in Tanzania’s economic transformation.

He said the theme of this year’s forum, “From Oversight to Foresight: Advancing Agile and Innovative Leadership under Transformation Pressures,” underscores the need for boards and executives to move beyond traditional supervisory roles and embrace leadership that anticipates future opportunities and challenges.

“In today’s rapidly evolving economic and technological landscape, leadership can no longer be confined to overseeing the present- it must also anticipate the future,” Mr Mchechu said.

He went on to add: “Institutions that cultivate foresight, agility and innovation will not only withstand transformational pressures but will also shape the path of progress.”

He added that the forum serves as a timely reminder that effective governance in the modern era requires more than accountability and supervision.

“It calls for leaders who are strategic in outlook, agile in thought, innovative in action, and bold enough to prepare our institutions for opportunities that lie beyond the horizon,” stressed Mr Mchechu.

“This Forum is also aligned with Dira 2050, which calls for a competitive, resilient and innovation-driven economy supported by efficient, accountable and forward-looking institutions.”

Mr Mchechu said the forum provides an opportunity for directors and executives to exchange ideas, strengthen governance practices and build capacity in areas critical to the long-term competitiveness and sustainability of their institutions.

According to him, discussions during the three-day forum will cover key thematic areas including innovation under pressure, economic and competitive intelligence, institutional resilience, the role of minority interest companies in achieving Dira 2050, and environmental, social and governance (ESG) sustainability for long-term value creation.

The Treasury Registrar also highlighted the growing role of minority interest companies in the national economy, noting that government investment in such companies has increased significantly over the past five years from Sh821 billion to about Sh3.6 trillion, reflecting the government’s continued confidence in partnerships with the private sector.

Dividend contributions from these companies have also risen sharply over the same period, increasing by 357 percent from Sh58 billion to Sh266 billion.

The MIF 2026 meeting brought together about 200 participants, including board directors, chief executive officers, policymakers, and experts from within and outside Tanzania, to discuss strategies for strengthening the performance and governance of companies in which the government holds minority shareholding, so that they can contribute more effectively to the country’s sustainable economic development.