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

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

The country’s treasury registrar has already been directed to audit all the companies and identify those making losses for closure.

However, 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.

This is part of the government’s plan to ensure the country becomes a middle income economy through industrial development by 2025.

- African News Agency