DAR ES SALAAM: TANZANIA’S ambition to grow its economy from the current 85 billion US dollars to one trillion dollars by 2050 will not be determined by the number of policies it formulates or plans it produces.
Rather, it will depend on how effectively public institutions transform those ambitions into measurable economic results.
That message emerged strongly during the opening of the Executive Induction Training Programme for Chief Executive Officers (CEOs) of public entities in Kibaha, where government leaders outlined what they described as a fundamental shift in the role of public institutions under Dira 2050 or simply Vision 2025.
The vision seeks to transform Tanzania into a competitive, industrialised high-middle income economy over the next 25 years.
Realising this ambition will require sustained growth across strategic sectors such as agriculture, manufacturing, tourism, mining, construction, the blue economy, financial services, sports and the creative industries, with public institutions expected to play a central role in creating the conditions for their expansion.
However, these sectors cannot flourish without efficient institutions that create an enabling environment for investment, regulate fairly, manage public resources prudently and provide quality services.
International experience offers valuable lessons for Tanzania’s economic ambitions.
Countries that have successfully transformed their economies have consistently placed capable public institutions at the centre of development.
South Korea, for example, coupled an ambitious industrialisation agenda with effective state institutions that coordinated policy, invested in infrastructure and human capital and worked closely with the private sector to build globally competitive industries.
Singapore followed a similar path, earning a reputation for efficient public administration, strong accountability and investor-friendly institutions that created confidence among local and foreign investors.
Closer to home, Rwanda has demonstrated how reforms aimed at improving public sector efficiency, streamlining government services and strengthening accountability can enhance competitiveness and attract investment.
Although each country’s development journey has been unique, the common thread has been the ability of public institutions to translate long-term national visions into measurable economic outcomes.
Rather than acting solely as regulators, these institutions became facilitators of investment, innovation and private sector growth.
That global experience mirrors the message delivered by Government leaders in Kibaha that Tanzania’s aspiration to build a one-trillion-dollar economy will depend not only on private investment but also on public institutions that are innovative, accountable, efficient and focused on results.
Opening the four-day induction programme on Tuesday, Minister of State in the President’s Office – Planning and Investment, Prof Kitila Mkumbo, said public institutions must abandon routine administrative approaches and instead embrace innovation, accountability and performance-oriented leadership.
He argued that institutional success should no longer be judged by reports prepared or meetings convened, but by tangible improvements in service delivery, investment attraction, productivity, employment creation and government revenue.
The remarks made during the CEOs induction coordinated by the Office of the Treasury Registrar (OTR) in collaboration with the Uongozi Institute, signal a broader transformation in public sector management where performance is increasingly expected to be measured by economic impact rather than administrative activity.
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Under this approach, every public institution is expected to identify how its strategic plans, budgets, annual work plans and performance indicators contribute directly to the implementation of Dira 2050.
Such alignment is intended to ensure that national development priorities are translated into concrete institutional responsibilities rather than remaining broad policy aspirations.
The Government also sees public institutions as critical enablers of private sector-led growth.
Prof Mkumbo emphasised that while the private sector remains the country’s primary engine for investment, innovation and job creation, its success depends significantly on the efficiency of public institutions.
He therefore urged institutions to move beyond their traditional regulatory role and become facilitators of investment by simplifying procedures, reducing unnecessary barriers and creating a predictable business environment capable of attracting domestic and foreign capital.
The message reflects growing recognition that economic transformation requires stronger collaboration between government, business, citizens and development partners.
Rather than operating independently, public institutions are expected to work closely with investors and other stakeholders to unlock opportunities across strategic sectors identified under Dira 2050.
The emphasis on institutional performance was echoed by Permanent Secretary for Investment, Dr Fred Msemwa, who said CEOs carry a significant responsibility in strengthening Tanzania’s competitiveness, improving service delivery and attracting investment.
According to him, visionary leadership, accountability and prudent management of public resources are indispensable ingredients for accelerating sustainable economic development.
For the President’s Office – Public Service Management, the induction programme itself represents an important investment in leadership capacity.
Permanent Secretary Juma Mkomi said the Government expects knowledge acquired during the training to be reflected in participants’ day-to-day leadership and institutional performance.
His remarks reinforce the view that leadership development is no longer simply a human resource function but an economic strategy.
This thinking is also shared by the OTR, which oversees Government investments in public entities.
Treasury Registrar Nehemiah Mchechu said Dira 2050 can only succeed if institutions are led by capable leaders who translate national aspirations into measurable outcomes.
He noted that since the induction programme was introduced in 2024, more than 187 CEOs have undergone the training, with another 57 participating this year.
Beyond strengthening governance and accountability, the programme equips executives with skills in public investment management, performance leadership, strategic planning, risk management, environmental, social and governance (ESG) principles, public finance and auditing.
The programme culminates with individual implementation commitments designed to ensure that lessons acquired are translated into institutional reforms.
Perhaps the strongest evidence supporting investment in leadership is the performance of public entities themselves.
According to Mr Mchechu, government dividend and other contribution collections have risen from 637bn/- during the 2020/21 financial year to 1.327tri/- in 2025/26, representing an increase of 108 per cent.
The growth demonstrates how improvements in governance, leadership and institutional performance can directly strengthen public finances and expand the Government’s fiscal capacity.
Looking ahead, OTR has identified five strategic priorities that will underpin reforms within public institutions during the implementation of Dira 2050.
These include strengthening good governance, investing in leadership and human capital, improving evidence-based performance management, expanding access to financing through the establishment of a Public Investment Fund, diversification of financing mechanisms and structured private-sector participation, as well as increasing the productivity and value of Government investments.
Collectively, these reforms aim to position public institutions not merely as administrators of government programmes but as drivers of national economic transformation.
The importance of capable leadership was further underscored by UONGOZI Institute Chief Executive Officer Kadari Singo, who argued that the success of Dira 2050 will largely depend on the country’s leadership systems.
He stressed the need to identify and nurture leadership talent, match leaders with roles that suit their capabilities, establish clear lines of authority and strengthen accountability across institutions.
His observations suggest that institutional effectiveness depends not only on policies but also on leadership structures capable of delivering consistent results over the long term.