By Business Insider Reporter
Minister of State in the President’s Office (Planning and Investment), Prof. Kitila Mkumbo (pictured below), has played down rising political tensions and diplomatic concerns, describing the current climate as a “testing period” that many countries face – and one the nation will overcome without derailing its investment trajectory.
Responding to a question from journalists about heightened political pressure and statements issued by several international organisations regarding the rule of law and human rights, Prof Mkumbo said such moments were “not unique to Tanzania”.
He emphasised that the government was actively engaging development partners to clarify issues raised and to maintain confidence in the country’s governance and economic direction.
“We are meeting our international partners, providing explanations, and discussing the concerns presented. Understanding will be reached and things will continue normally,” he said, insisting that Tanzania would remain a united, democratic and resilient nation where all citizens feel included and benefit from national resources.
His remarks come at a time when investors have been closely monitoring the political atmosphere following a series of protests and increased scrutiny from rights groups.
The government’s reassurance signals its determination to prevent political turbulence from affecting the investment climate, especially as Tanzania positions itself as a regional hub for logistics, energy, and manufacturing.
Sweeping reforms for state-owned enterprises
Alongside his diplomatic message, Prof. Mkumbo announced a major overhaul in the governance of state-owned enterprises (SOEs), marking one of the most significant reforms in the sector in recent years.
Starting 1 July 2026, chief executives and board members of public corporations will be appointed through a competitive recruitment system rather than direct presidential or ministerial selection. A new law to underpin the reform is currently being drafted.
He said the shift aims to increase transparency, integrity, and merit-based appointments, while broadening opportunities for qualified Tanzanians to serve in high-level public roles. Under the forthcoming system, executives for agencies such as Tanesco, the Tanzania Ports Authority (TPA), and the Tanzania Investment and Export Processing Zones Authority (TISEZA) will be required to apply and undergo open competition.
“If you want to be Director-General of Tanesco, you will apply. If you want to sit on the board of TPA or TISEZA, you will go through a competitive process. All qualified Tanzanians will have the opportunity to apply,” he stated.
The minister added that the reforms aim to boost the efficiency of public corporations and strengthen their contribution to the national economy. A new performance evaluation framework will be introduced, assessing SOEs based on economic productivity, service quality, and their impact on citizens’ welfare.
Listing SOEs on the Stock Market
In a further push for transparency and public participation, the upcoming legislation will require some commercially oriented state-owned enterprises to list on the Dar es Salaam Stock Exchange (DSE).
The move is expected to allow Tanzanians to buy shares and co-own major national assets, increase disclosure obligations, and improve management accountability.
Market analysts say partial listing could unlock fresh capital for expansion, modernise governance structures, and align SOEs with global corporate standards. The initiative echoes reforms undertaken in Kenya, Rwanda, and Ethiopia, where selective privatisation and capital-market participation have been used to strengthen public corporations and attract foreign investment.
With political concerns simmering in the background, the government is betting on structural reforms – particularly in the public sector – to reassure investors, stimulate competition, and signal stability. Prof. Mkumbo maintained that Tanzania’s long-term outlook remains strong: “We will pass through this phase, we will correct it, and we will overcome it. Our direction as a country has not changed.”
