Dar es Salaam. President Samia Suluhu Hassan has called on public institutions to focus on investments that produce measurable economic and social benefits, saying government spending must translate into improved services, more jobs and stronger economic growth.
Speaking on Tuesday, June 30, 2026 during the National Dividend Day ceremony at State House in Dar es Salaam, the President said public investment should not be judged merely by the amount of money spent, but by the value it creates for the country and its citizens.
She said productive investment should attract both domestic and foreign capital, lower the cost of doing business, expand employment opportunities, improve public services, increase government revenue and safeguard the interests of Tanzanians.
The ceremony was held under the theme, Results-Oriented Public Investment: A Pillar for a Competitive Economy and Sustainable Development Towards Vision 2050.
President Hassan said the theme should not remain a slogan but must be reflected in the daily operations of ministries, government agencies and public institutions.
She directed every institution to align its plans and services with the country’s long-term development priorities, ensuring that citizens experience tangible improvements in their lives.
The President said the implementation of Tanzania’s Development Vision 2050, which officially begins on July 1, requires competitive and efficient institutions capable of operating successfully in a changing economic environment.
She urged organisations that continue to underperform to conduct honest self-assessments and improve their efficiency before the new development agenda gathers momentum.
President Hassan also expressed concern over loans that fail to generate meaningful returns for the country.
She said public institutions should only undertake borrowing that supports productive investments and delivers measurable benefits.
She called on government entities to embrace technology, minimise waste, protect public assets and create an environment that attracts private investment.
The President stressed that the government cannot achieve national development goals on its own and described the private sector as an indispensable partner in expanding investment, creating jobs and accelerating economic growth.
She also warned against negligence and the misuse of public resources, saying the government would continue strengthening oversight and taking corrective action against institutions that fail to uphold accountability.
According to the President, success should not be measured solely through financial reports and statistics, but through improvements in service delivery and the overall wellbeing of citizens.
During the ceremony, the Minister of State in the President’s Office [Planning and Investment], Kitila Mkumbo, said Tanzania’s recent corporate achievements demonstrate the impact of ongoing economic reforms and the government’s development agenda.
He said reforms implemented under President Hassan’s administration have strengthened both public institutions and private enterprises, particularly in the banking industry.
Prof Mkumbo cited the latest regional corporate performance rankings published by African Business magazine, which showed Tanzanian companies making significant gains among East and Central Africa’s leading firms.
He said CRDB Bank and NMB Bank secured third and fourth positions respectively, outperforming several established regional competitors.
Other Tanzanian companies listed among the region’s top performers included Tanzania Breweries Limited, Tanzania Portland Cement Company, Vodacom Tanzania and Tanzania Cigarette Company.
Prof Mkumbo said the latest rankings mark a notable improvement from 2020, when Tanzanian companies featured less prominently among the region’s leading businesses.
He attributed the progress to deliberate policy reforms and sustained economic planning.
Meanwhile, Treasury Registrar Nehemiah Mchechu said the banking sector has recorded remarkable financial growth during the past five years.
He said industry profits have increased from approximately Sh666 billion to Sh2.5 trillion, while annual sector growth has consistently exceeded 20 percent.
Mr Mchechu added that the ratio of non-performing loans has declined from between eight and nine percent at the beginning of President Hassan’s administration to about 2.8 percent, reflecting stronger regulation, improved lending standards and better financial discipline across the sector.
