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President John Magufuli
Tanzania's President John Magufuli. Courtesy Photo

Tanzania to Shut Down Loss-Making State Firms

Tanzania's Minister for Finance and Planning Philip Mpango said the government is determined to ensure that by 2025 the country becomes a middle income economy through industrial development.
posted onJuly 12, 2018
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DAR ES SALAAM. Tanzania's Minister for Finance and Planning Philip Mpango said on Tuesday the government will shut down loss-making state-owned enterprises (SOEs) and retain only those that post profit annually.

Mpango told the official opening of a workshop on the role of SOEs in implementing the Industrialization Agenda that there are now more than 400 SOEs.

"The government will not hesitate to close down loss-making SOEs to reduce the burden of running them," said the minister in the commercial capital, Dar es Salaam.

"I'm not happy to see state-owned firms failing to pay dividends to the government," said Mpango. "These firms have to go. There are no more excuses."

He said he had already directed the treasury registrar to audit all SOEs and identify those making losses for closure.

The government will continue providing financial resources, creating a friendly environment and putting in place requisite systems in order to raise the contribution of SOEs to industrial development, Mpango said.

He said the government is determined to ensure that by 2025 the country becomes a middle income economy through industrial development.

The goal is actively and effectively pursued by President John Magufuli and that "all of us are duty-bound to help him realize it in the interest of our nation," the minister said.

(Xinhua)

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