Tanzania’s Historic Public Public Corporations and Institutions Overhaul

By Kilimokwanza.org Team

Dar es Salaam, December 15, 2023

In a move signaling a new era for Tanzania’s public sector, Prof. Kitila Alexander Mkumbo, the Minister of State in the President’s Office for Planning and Investment, announced a transformative reorganization plan. This comprehensive strategy, rooted in the Chama cha Mapinduzi’s 2020 election manifesto, aims to revitalize public corporations, aligning them with national development goals.

Context and Impetus for Change:

The initiative springs from a deep-seated need for efficiency and profitability in public corporations. It’s in direct response to President Samia Suluhu Hassan’s April 22, 2022, directive, part of her broader 4R philosophy (Reform, Rationalize, Revenue generation, Results-oriented management), to overhaul the public sector’s operational framework. This move dovetails with the country’s strategic goals of sustainable development and enhanced public service delivery.

Analytical Foundations:

A team of experts undertook a meticulous evaluation of public corporations, scrutinizing their performance, challenges, and potential for improvement. This analysis underpins the reorganization, ensuring that each step aligns with empirical data and strategic objectives.

Principles Guiding the Overhaul:

The reorganization rests on four foundational pillars:

1. Enhanced Private Sector Involvement: By encouraging private investment in areas less attractive to the public sector, the government aims to foster a vibrant, diverse economic landscape.
2. Subsidy Reduction: This move will alleviate the financial burden on the government, redirecting resources to critical areas.
3. Support for Essential Public Services: Core public services, intrinsically linked to the public sector, will continue to receive government support.
4. Strategic Mergers: Organizations with similar objectives and functions will merge, creating more streamlined and effective entities.

Phase One: Mergers and Dissolutions:

The first phase of this initiative sees the merger of 16 organizations and the dissolution of four, a significant reshuffle in Tanzania’s public sector landscape. These changes, carefully selected, aim to eliminate redundancy, enhance efficiency, and optimize resource allocation.

Notable Mergers:

• The merging of the National Identification Authority (NIDA) and the Registration, Insolvency and Trusteeship Agency (RITA) stands out as a flagship change. This merger will centralize identification processes, a critical step in improving governance and public service delivery.
• The consolidation of the Tanzania Agricultural Development Bank (TADB) with the Agricultural Inputs Trust Fund (AGITF) highlights the government’s commitment to bolstering the agricultural sector, a mainstay of Tanzania’s economy.
• Other significant mergers in sectors like tea, dairy, agricultural technology, and investment reflect a strategic focus on key economic drivers.

Key Dissolutions:

• The dissolution of entities like the Tanzania Police Force Corporation and the Tanzania Food and Nutrition Centre signifies a bold step in streamlining public services and reallocating resources to more critical areas.

Human Resource Considerations:

Central to this reorganization is the assurance that no public employee will lose their job. This human-centered approach ensures stability and continuity in service delivery, even as the structural changes unfold. Moreover, the restructuring adheres strictly to existing laws, safeguarding employees’ rights and interests.

Implementation and Compliance:

The respective ministers have been directed to ensure that the merger and dissolution processes are completed within the current fiscal year. This time-bound approach underscores the government’s commitment to swift and effective implementation.

Looking Ahead:

This reorganization is not an isolated event but part of a broader, ongoing effort to refine the operation and management of public corporations. Continuous efforts to enhance systems for evaluating and improving performance underscore a long-term commitment to national development.

Impact and Significance:

The reorganization is anticipated to yield significant benefits. For the public, it promises more efficient and responsive services. For the government, it represents a strategic reallocation of resources and a reduction in operational redundancies. Economically, it is expected to spur growth by creating a more dynamic and efficient public sector.

Prof. Mkumbo’s announcement is more than a plan for reorganization; it’s a blueprint for a new chapter in Tanzania’s public administration. By optimizing public corporations and institutions, the government sets the stage for enhanced service delivery, economic growth, and national development. This initiative reflects a forward-thinking approach to governance, positioning Tanzania as a model for public sector reform in the region.

KilimoKwanza.org remains committed to providing comprehensive coverage of this transformative journey, understanding its significance in shaping Tanzania’s future.

Stay tuned for more updates and in-depth analyses of this historic development in Tanzania’s public sector.