Tanzania:Government Urges Public Institutions to Borrow from Private Sector Efficiency

By Adonis Byemelwa

The government has once again turned the spotlight on public institutions, challenging them to rethink how they operate and to draw inspiration from the private sector’s efficiency, innovation, and independence.

This call was made by the Deputy Prime Minister and Minister for Energy, Hon. Dr. Doto Bitekoon August 26, 2025, during the closing of the Working Session of Board Chairpersons and Chief Executives of Public Institutions (CEOs Forum) held in Arusha.

With candid observations, Dr. Biteko questioned why public institutions continue to rely heavily on government support for survival when the private sector—with far fewer resources—has managed to thrive, innovate, and sustain itself.

“The private sector thinks strategically, pays its own salaries, and pays taxes to the government. Yet some public institutions still request funds from the government every year just to operate and pay salaries,” he noted pointedly.

The Deputy Prime Minister’s remarks carried an unmistakable sense of urgency. He reminded public leaders that their institutions were established not to be a burden on the state, but to become engines of national growth.

 "What’s surprising is that a few people in the private sector can run institutions efficiently and afford to pay all their employees," he said. "This is why public institutions must begin learning the techniques used by private organizations."

At the heart of his message was a call for a mindset shift: the need for public institutions to close loopholes that allow revenue leakages, sharpen managerial skills, and embrace innovation. “Managing your organizations requires more than just paperwork—it requires fixing broken systems, building resilience, and thinking differently,” Dr. Biteko emphasized.

His reflections also highlighted a larger point: reforms are already bearing fruit. Several public institutions have begun to demonstrate that independence is possible. “The reforms we are leading and implementing in public entities are not just words on paper—they have begun to bring tangible outcomes for our country,” he said, urging others to keep pace.

Equally important, Dr. Biteko stressed the need for harmony between board chairpersons and chief executives of public institutions, urging them to avoid unnecessary conflicts that undermine productivity.

“I don’t want to hear that Chairpersons and Chief Executive Officers conflict,” he warned, highlighting that cooperation is as essential to efficiency as innovation is.

His remarks came against the backdrop of a politically sensitive season, with general elections set for October 29, 2025. In this regard, Dr. Biteko went further, calling on public sector leaders to be ambassadors of peace in their institutions. “As a nation, we aspire to have peaceful elections, because when there is peace, our public institutions will be in a better position to perform well,” he emphasized.

The tone of the discussions was not only about operational efficiency but also about vision and long-term ambition. Deputy Minister in the President’s Office – Planning and Investment, Hon. Stanslaus Nyongo, reminded participants of the country’s long-term aspirations under Vision 2050.

“The government has a plan to reach Upper-Middle-Income Economy status by 2050, with the national GDP reaching $1 trillion compared to the current $85 billion. So, we have a big task ahead, and we need high-level readiness,” he said.

Nyongo’s message was both sobering and inspiring. He reminded leaders that this transition to a trillion-dollar economy will not happen through wishful thinking but through stronger, more self-reliant institutions.

“This is no small task. We have a lot to do, and I believe that by strengthening our public institutions, we will be able to achieve that goal,” he added. For him, the success of Vision 2050 depends significantly on how well public institutions shed dependency and embrace the entrepreneurial spirit of the private sector.

Echoing these sentiments, Treasury Registrar Mr. Nehemiah Mchechu provided tangible evidence that change is already underway. He cited STAMICO, TANESCO, and TPDC as institutions that have managed to move away from reliance on government subsidies for operations and salaries.

 “Reducing dependency enables those funds to be redirected toward implementing major development projects,” he explained. His office, he added, is continuing to assess more public institutions to ensure that they, too, achieve financial independence by the end of the next fiscal year.

The broader message running through the forum was unmistakable: public institutions can no longer afford complacency. They must look inward, tighten controls, and adopt the same principles that have allowed the private sector to become resilient and self-sustaining. The underlying philosophy was clear—self-sufficiency breeds strength, while dependency drains national resources.

For citizens, these reforms signal the promise of a more dynamic public sector—one capable of competing with private enterprises, driving innovation, and contributing substantially to the Government Consolidated Fund.

For leaders of these institutions, the challenge is not abstract; it is immediate and personal. They must prove that they can run their organizations with the same discipline and creativity that have kept private enterprises afloat, even in difficult times.

As the country moves closer to the 2025 general elections and sets its eyes on the lofty ambitions of Vision 2050, the stakes are higher than ever. Dr. Biteko’s message from Arusha was not just another government directive—it was a reminder that public institutions carry the weight of national progress. Whether they rise to the challenge will define not just their own survival but the future economic resilience of the nation.