DAR-The Office of the Treasury Registrar (OTR) has explained that the government decided to collaborate with the private sector in managing certain state-owned enterprises to enhance efficiency, attract capital, and leverage technology to drive national economic growth.
Ms Lightness Mauki, Director of Performance Management, Monitoring, and Evaluation of Commercial Enterprises at OTR, said the partnership is part of a broader government strategy to improve enterprise performance while encouraging investment.
Ms. Mauki made the remarks during an interview on the Kumekucha program, aired on ITV Tanzania, as preparations continue for the Minority Interest Forum (MIF) 2026-an upcoming gathering of more than 150 board directors and CEOs from 56 companies where the government holds less than 51 percent of the shares.
The forum, which aims to strengthen strategic leadership in these companies, is scheduled for March 16–18 at PAPU Tower in Arusha.
Looking back at the government’s divestment strategy, Ms Mauki explained that it once owned over 400 state-owned enterprises.
“Originally, there were more than 400 enterprises. We decided to sell some to the private sector while retaining 56, in which we hold minority shares,” She expounded.
He added: “We offloaded shares to allow private investors to take larger stakes, enabling collaboration in expertise, capital, and technology to ensure these companies continue to grow.”
The arrangement benefits both sides--- Private investors gain opportunities for profit and investment, while the government collects dividends and ensures that these enterprises deliver value to citizens.
Over the past five years, dividends from companies where the government holds minority stakes have surged by 357 percent, rising from Sh58.26 billion in the 2019/20 fiscal year to Sh266.52 billion in 2024/25.
This remarkable growth highlights the success of the government’s divestment strategy in boosting efficiency and generating higher returns.
The increase in dividends is matched by a rise in government investment in these companies.
Ms Mauki said that during the same period, the government’s investment in minority-owned companies grew by 140 percent, climbing from Sh1.5 trillion to Sh3.6 trillion, underscoring the steady growth and effectiveness of the collaborative strategy with the private sector.
When asked who initiates private sector participation in these enterprises, she stressed that it is a deliberate government strategy aimed at improving the performance of public enterprises.
“The government recognized that there were many enterprises, and at the same time, technology is advancing rapidly and capital needs are substantial. Therefore, it was necessary to work with the private sector to ensure collaboration in managing and developing these companies,” she said.
She clarified that the strategy ensures the government retains shares in strategic companies while allowing the private sector to participate in investment.
“It was a specific government strategy to distribute shares while keeping minority stakes in strategic enterprises,” she said.
She emphasized that the government cannot cede full ownership because it has obligations to the public.
“You cannot give away 100 percent because the government has a duty to ensure citizens receive a range of services and products,” he explained.
Regarding youth participation, Ms Mauki said the government has prepared a new framework through Dira 2050 and OTR’s 25-year Long-Term Perspective Plan, set to commence on July 1, 2026.
“The plan will expand the range of companies and institutions listed on the stock market to provide broader opportunities for citizens, especially young people, to own shares and earn dividends,” he said.
He added that youth participation was not extensively covered in the previous plan, which ends on June 30 this year, but will receive greater emphasis under the new long-term framework.