Why a second phase of reform is needed
A country’s business environment is shaped by the daily experience of starting, operating and expanding a business. Licensing requirements, inspections, taxes, fees, access to infrastructure, regulatory decisions and the time required to obtain approvals all affect whether businesses can invest and grow.
MKUMBI II, the second phase of Tanzania’s plan to improve the business and investment environment, builds on the first MKUMBI reform programme. Its purpose is to identify practical changes that can make government processes clearer, more coordinated and more responsive to businesses and investors. The programme is designed to align business reforms with Dira 2050 and the national objective of building a more productive and competitive economy.
The draft MKUMBI II framework covers the relationship between public institutions and the private sector, regulatory and administrative processes, investment facilitation, digital services and reform implementation. It treats business environment reform as a cross government responsibility because businesses often interact with several ministries, regulators and local authorities. The Ministry’s draft blueprint describes the proposed framework and implementation structure.
Prof. Mkumbo’s role in developing MKUMBI II
As Minister of State in the President’s Office for Planning and Investment, Prof. Mkumbo initiated and led the government process to prepare MKUMBI II. At the launch of the preparation process, he described the importance of reviewing the first phase, identifying what had worked and addressing barriers that continued to affect business and investment. A special committee was tasked with reviewing MKUMBI I and preparing the next phase. The Ministry’s announcement records the launch and the committee’s assignment.
The development of MKUMBI II has involved consultation with government institutions, businesses and other stakeholders. The draft was presented for review in 2026, with feedback intended to strengthen its proposed actions before implementation. Prof. Mkumbo’s role has been to provide ministerial direction, coordinate the work through his office and bring the reform agenda into national planning discussions.
Current priorities and implementation
MKUMBI II is intended to move reform beyond general commitments by identifying specific actions, responsible institutions and ways to monitor progress. The proposed direction includes reducing unnecessary regulatory burdens, improving institutional coordination, expanding digital services and making government processes more transparent and predictable.
Prof. Mkumbo’s current work in planning and investment includes coordinating the alignment of these reforms with Dira 2050 and the national development plans. The Government’s planning and budget guidance describes MKUMBI II as a 2026 to 2030 programme. The 2026 national development plan also identifies continued work to improve the business environment, review laws and regulations, reduce the time and cost of obtaining licences and strengthen digital systems. The national development plan proposals describe these areas of work.
The purpose of MKUMBI II is to make the public sector a more effective partner in economic development. Its success will depend on consistent implementation across institutions and on whether businesses experience concrete improvements in the way rules and services work.
