Assessment of effective of foreign management contractors in public enterprises

The objective of the study was to examine the role and effectiveness of foreign management contractors in Tanzanian commercial public enterprises. It focused on two cases namely, Tanzania Telecommunications Company Limited (TTCL) and Tanzania Electric Supplies Company Limited (TANESCO) (‘the public enterprises’) Both of them were managed by foreign management contractors at different times. The case study method was adopted. The primary data was collected through questionnaires and direct interviews with TTCL and TANESCO managers and staff and Government officials. The secondary data were obtained from the enterprises ‘audited financial statement for the period of the management contractors. The interpretation of the finding from the research shows that the foreign management contractors were unable to achieve fully the key performance objectives in accordance with the terms of contracts. The research has not identified improvements in the key performance areas of revenue and profitability. Commercial (sales and marketing), technical performance (infrastructure development), financing and knowledge and skills transfer (capacity building) as per TTCL management contracts. Likewise, the findings revealed lack of improvement in quality and reliability of power supply in the country during the tenure of management contractor, Net group Solutions in TANESCO, against the contract terms in addition, specific objectives of engaging Net Group