Treasury Registrar Announces Major Reforms for Institutions

The Treasury Registrar, Nehemia Mchechu, has announced plans for major reforms in approximately 50 public institutions, with the intention of eventually listing them on the stock exchange. Mchechu made this statement yesterday during the handover of the Mponde Tea Factory.

He was discussing the investment opportunities that the government is set to create.

Mchechu stated that this initiative aligns with the vision of President Samia Suluhu Hassan, who has been emphasizing the need for public institutions, including Social Security Funds, to perform well and allow citizens to become shareholders in these organizations. “This is a directive that she (President Samia) is personally overseeing, and she wants these reforms to be implemented, and it is our responsibility to ensure that they are carried out,” he said.

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He noted that currently, public institutions are owned by the government on behalf of every Tanzanian citizen. However, there is a potential for each citizen to have direct ownership. The government’s goal is that within the next five years, 50 institutions will undergo significant reforms to operate like private sector entities, with another 250 institutions to follow.

“Our focus is on the large institutions that currently generate 80% of the revenue. We don’t want to stop at 50 institutions; we will add another 30 that may not be major revenue contributors at present but are strategic and will yield positive results in the future,” he said.

He further added, “In five years, we must reach 50 institutions that have undergone major reforms, and all other institutions will follow suit, leading to a transformation in the country and its economy. This is because institutions are the producers, while the central government is not a producer but a policy maker, regulator, and consumer.”