Tanzania will shut down loss-making State-owned enterprises (SOEs) and retain only those that post profit annually, the country’s Minister for Finance and Planning Philip Mpango said on Tuesday.

Speaking at the official opening of a workshop on the role of SOEs, Mr Mpango noted that there are now more than 400 government owned firms in the country.

“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. These firms have to go. There are no more excuses,” he said.

He said he had already directed the Treasury Registrar to audit all the companies and identify those making losses for closure.

Tanzania 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, Mr Mpango said.

The government says it is determined to ensure the country becomes a middle income economy through industrial development by 2025.

The minister said the goal is actively being pursued by President John Magufuli and that “all of us are duty-bound to help him realise it in the interest of our nation”.

– XINHUA