Former African Development Bank Group president Akinwumi Adesina has urged Tanzania to fundamentally change how it measures the performance of State-Owned Enterprises. He delivered a keynote address at the 2026 Chairpersons and Chief Executive Officers of Public Institutions Forum in Arusha, emphasizing that public ownership should be evaluated based on the economic and social value created from state assets. This approach would consider factors such as job creation, investment attraction, export generation, and government revenue.
Dr. Adesina stressed that achieving Tanzania's goal of building a $1 trillion economy by 2050 requires State-Owned Enterprises to become more productive, better governed, and capable of mobilizing private capital. He noted that every shilling invested by the state represents an opportunity and should be assessed based on the economic opportunities it creates. This includes evaluating productivity, jobs, exports, government revenue, capacity building, and private investment.
The former AfDB president identified the Public Investment Fund as a crucial instrument in the next phase of SOE transformation. He suggested that the fund should direct capital towards enterprises with credible growth potential, supported by clear reform plans and measurable targets. Dr. Adesina emphasized that capital should come with reform and investment should come with accountability.
Dr. Adesina also called for stronger corporate governance in State-Owned Enterprises, emphasizing the need for clear accountability between shareholders, boards, and management. He urged boards to provide strategic direction, oversee risks, and constructively challenge management, while giving executives sufficient authority to implement agreed strategies.
Leadership development and succession planning were also highlighted as essential by Dr. Adesina. He warned against institutions becoming overly dependent on individual leaders and stressed that institutions must outlive individuals. Stronger public enterprises require systems, management capabilities, and organizational cultures capable of sustaining performance even when leadership changes.
Dr. Adesina encouraged Tanzania to broaden participation in strong public enterprises through strategic investors, partnerships, and public listing. However, he cautioned that listing should only occur after companies have established professional governance, capable management, credible financial reporting, strong internal controls, and competitive business models. This could provide Tanzanian citizens, pension funds, and institutional investors with opportunities to participate in the growth of productive national assets.
Treasury Registrar Nehemiah Mchechu supported Dr. Adesina's call for broader performance measures, noting that profits and dividends alone cannot capture the contribution of all public entities. Mchechu emphasized that some institutions were established to provide essential services, enforce standards, and safeguard public safety, and their performance should be assessed based on improvements in services, reductions in costs, and increased efficiency.
Key points
- Dr. Akinwumi Adesina advises Tanzania to focus on value creation in State-Owned Enterprises.
- The Public Investment Fund should direct capital towards enterprises with credible growth potential.
- Stronger corporate governance and leadership development are essential for transforming State-Owned Enterprises.
