Office of the Treasury Registrar
DAR ES SALAAM: TANZANIA continues to hold minority stakes in strategic companies to safeguard national interests, promote economic growth, and leverage private sector expertise, officials from the Office of the Treasury Registrar (OTR) say.
Speaking in an interview with various media outlets including TBC 1, ITV, Channel 10, Star TV, Radio One and Radio Free Africa Ms Lightness Mauki, Director of Performance Management, Monitoring and Evaluation of Commercial Enterprises at OTR, Mr Chacha Marigiri, Director of Administration and Human Resources Management, and other senior officials, explained the rationale, benefits, and impact of this strategy ahead of the Minority Interest Forum (MIF 2026), scheduled for March 16–18 at PAPU Hall in Arusha.
Q1: Why does the government continue to retain minority stakes instead of fully divesting?
A: The government’s role is not necessarily to run businesses directly but to safeguard national interests while ensuring that these companies continue to grow and deliver value to citizens. Retaining minority shares allows the government to remain engaged in strategic sectors even when private investors hold the majority stake.
This ensures influence over key decisions affecting the public, while companies benefit from private sector capital, technology, and managerial expertise.
It also considers national security, strategic sector control, and the ability to provide services in areas private investors might overlook.
Q2: What are minority shareholding investments?
A: Minority shareholding investments refer to companies in which the government owns below 51 percent of shares. As of June 30, 2025, the government had invested 3.6 trillion/- in 56 companies across key sectors, including banking, energy, telecommunications, mining, and industry. Even with minority ownership, the government can influence strategic decisions, safeguard public interests, and ensure accountability.
Q3: How did this strategy emerge?
A: Historically, the government owned more than 400 public enterprises. Over time, as global economic conditions changed and capital needs increased, it became necessary to adopt a more sustainable investment model.
The government divested part of its shares while retaining minority stakes in strategic enterprises. This allowed private investors to take larger ownership positions and bring in capital, technology, and management expertise, while the government remained engaged in enterprises critical to economic stability and growth.
Q4: Before investing in a company, what does the government consider?
A4: The government examines several factors, including the company’s history, strategic relevance, and capacity to align with national priorities. We consider where the private sector can complement our goals, such as capital infusion, technical expertise, or market expansion.
Companies are also assessed for their ability to serve public interest areas, like rural infrastructure or national security, which may not attract private investment.
Q5: Does holding minority shares limit the government’s influence in decision-making?
A: No. The government actively participates in corporate governance through board representatives and shareholders’ meetings. Board meetings are held quarterly, and annual general meetings provide a platform to influence strategic decisions while ensuring alignment with national priorities.
Each minority-owned company has government-appointed board members who contribute to key decisions, demonstrating that holding minority shares does not limit the government’s influence.
Q6: Is the partnership between the government and private sector delivering tangible results?
A: Absolutely. Dividends from companies where the government holds minority shares have grown by 357 percent, rising from 58.26bn/- in 2019/20 to 266.52bn/- in 2024/25. During the same period, government investment increased from 1.5 tri/- to 3.6 tri/-, demonstrating that the strategy boosts efficiency and returns while keeping public oversight intact.
Q7: How do these investments benefit ordinary Tanzanians?
A: These companies generate employment locally and internationally. For example, Airtel Tanzania, where the government owns 49 per cent, employs Tanzanians in regional and international offices, giving them exposure and skills they can bring back home. Puma Energy Tanzania, where the government holds 50 percent, also deploys staff regionally.
Several companies previously led by expatriates are now managed by Tanzanian executives, including NMB Bank, NBC Bank, and Puma Energy Tanzania, reflecting the growth of local leadership capacity.
The investments also stimulate local economies. Kilombero Sugar Company, where the government holds 25 percent, purchases sugarcane from local farmers. Following a Sh720 billion plant expansion, offtake has increased from 600 tonnes to 1,500 tonnes per year, boosting livelihoods and rural development.
Q8: Why did the government decide to collaborate with the private sector?
A: The government recognised that some enterprises require capital, technology, and managerial expertise that the public sector alone cannot provide efficiently. Collaboration allows private investors to take majority stakes while the government retains minority shares to safeguard public interests. This partnership enhances efficiency, promotes growth, and ensures long-term sustainability of strategic companies.
Q9: Who initiated private sector participation in these enterprises?
A: It is a deliberate government strategy aimed at improving the performance of public enterprises. The government wanted to retain influence in strategic companies while enabling private investors to bring in capital, technology, and management expertise. This ensures that enterprises remain viable, competitive, and aligned with national priorities.
Q10: Why doesn’t the government offload some shares specifically for youth?
A: The government has prepared a new framework through Dira 2050 and OTR’s 25-year Long-Term Perspective Plan, starting July 1, 2026. This plan will expand the number of companies listed on the stock market, providing broader opportunities for citizens, especially young people, to own shares and earn dividends. Youth participation will be emphasised under the new framework.
Q11: What is the Minority Interest Forum (MIF 2026) and why is it important?
A: MIF 2026 is the third edition of a high-level governance and leadership platform convened by OTR. It brings together over 150 board directors, chief executive officers, senior government officials, institutional investors, and selected media representatives from companies in which the government holds minority shares. The forum strengthens governance, strategic leadership, and institutional resilience while aligning corporate strategies with Dira 2050 and national development priorities.
Q12: Who participates in the forum?
A: Participants include minority-interest directors, chief executive officers, senior government officials, regulatory authorities, governance and risk experts, institutional investors, and media representatives. They represent strategic sectors including finance, infrastructure, energy, telecommunications, manufacturing, logistics, and services.
Q13: What is the focus of MIF 2026?
A: The forum promotes governance, strategic leadership, and institutional resilience. Participants explore risk anticipation, opportunity identification, innovation, and adaptive leadership. Discussions also emphasize ESG compliance, technology adoption, and alignment with national development plans, encouraging collaboration between boards, management, and shareholders.
Q14: How does the forum align with Tanzania’s longterm development agenda?
A: MIF 2026 supports Dira 2050 and ongoing public sector reforms by building the capacity of directors and executives to exercise agile, innovative, and foresight-driven leadership. It encourages alignment between corporate strategies and national plans, fostering collaboration to drive long-term performance, competitiveness, and inclusive economic growth, reflecting President Samia Suluhu Hassan’s vision for strong publicprivate partnerships.
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