Arusha. The government has called on public institutions to learn from the private sector on how best to operate efficiently and improve their performance.
The call was made on August 26, 2025, by the Deputy Prime Minister, Dr Doto Biteko, during the closing of the Working Session of Board Chairpersons and Chief Executives of Public Institutions (CEOs Forum) held in Arusha.
He said there is no reason why public institutions cannot operate efficiently and professionally, ultimately reducing their reliance on the government and instead becoming major contributors to the Government Consolidated Fund.
“The private sector thinks strategically, pays its own salaries, and pays taxes to the government. Yet some public institutions still request funds from the government every year just to operate and pay salaries,” said Dr. Biteko, who is also the Minister for Energy.
He added, “What’s surprising is that a few people in the private sector can run institutions efficiently and afford to pay all their employees.”
He noted that this is why public institutions need to learn the techniques used in the private sector.
“Heads of public institutions must close all revenue leakage loopholes. Do the work of managing your organizations so that you become skilled in fixing your institutions and thinking differently, with a focus on innovation like the private sector does.”
Dr Biteko also pointed out that reforms made in public institutions have already started yielding significant national results.
“The reforms we are leading and implementing in public entities are not just words on paper; they have begun to bring tangible outcomes for our country,” he said, urging other institutions to also increase their efficiency.
Dr Biteko further urged Board Chairpersons and Heads of Public Institutions to work harmoniously and depend on each other to avoid unnecessary conflicts.
“I don’t want to hear that Chairpersons and the Chief Executive Officers are in conflict,” he stressed.
Dr Biteko also called on them to be ambassadors of peace within their institutions during the lead-up to the general election scheduled for October 29, 2025.
“As a nation, we aspire to have peaceful elections, because when there is peace, our public institutions will be in a better position to perform well,” he emphasized.
Meanwhile, the Deputy Minister in the President’s Office [Planning and Investment], Stanslaus Nyongo, challenged board chairpersons and public institution heads to ensure they empower the government in achieving Vision 2050.
“The government has a plan to reach Upper-Middle-Income Economy status by 2050, with the national GDP reaching $1 trillion compared to the current $85 billion. So, we have a big task ahead, and we need high-level readiness,” he said.
He added: “This is no small task. We have a lot to do, and I believe that by strengthening our public institutions, we will be able to achieve that goal,” said Mr Nyongo.
He further emphasized that the ministry’s goal is to ensure that public institutions contribute significantly to the national economy, including the implementation of Vision 2050.
On his part, the Treasury Registrar, Mr Nehemiah Mchechu, said that the reforms taking place in public institutions are already bearing fruit.
“In the first phase, major institutions including STAMICO, TANESCO, and TPDC have managed to do away with reliance on government subsidies for operations and salaries,” he said.
He explained that the Office is continuing with assessments that will enable more institutions to become independent from government support by the end of the next fiscal year.
“Reducing dependency enables those funds to be redirected toward implementing major development projects,” he concluded.
