Government lawyers say successful litigation and arbitration helped shield Tanzania from hundreds of billions of shillings in potential liabilities, highlighting the growing importance of legal risk management to public finances and strategic investments.
By Business Insider Reporter
Tanzania avoided hundreds of billions of shillings in potential financial liabilities from civil and arbitration disputes during the 2025/26 financial year, underscoring the increasingly important role of legal risk management in protecting public finances and major investments.
The Office of the Solicitor General (OSG) registered 3,069 civil cases involving the government and its institutions between July 2025 and June 2026, according to Deputy Solicitor General Alice Mtulo.
Of those, 1,106 cases were concluded, saving the government an estimated TSh438.6 billion that officials said could otherwise have been paid out had the cases been lost.
The financial exposure was even more significant in arbitration proceedings, which frequently involve large commercial contracts and investment disputes.
During the same period, the OSG registered 81 arbitration cases involving the government and public institutions. Thirty-four were concluded, resulting in estimated savings of TSh25.9 billion and US$430.4 million, Mtulo said.
The figures highlight the financial stakes surrounding government litigation as Tanzania expands investment in infrastructure, energy, mining and other strategic sectors where complex commercial contracts can expose the state to substantial claims.
Between July and September 2026 alone, the office registered another 841 civil cases and concluded 193, resulting in estimated savings of TSh20.1 billion.
It also registered 18 arbitration cases during the three-month period and concluded nine. The government estimated the outcomes saved US$24.9 million, TSh1.6 billion, €31,395 and £1,304.50 in potential liabilities.
Permanent Secretary in the Ministry of Constitution and Legal Affairs Dr. Seif Shekalaghe said the results demonstrated the office’s importance in safeguarding the country’s economic interests.
“I have noted and recognised that the Office of the Solicitor General is a guardian of the national economy because of the civil and arbitration cases you have handled and won,” Shekalaghe said during a working session with the office’s leadership in Dar es Salaam.
He said the ministry would continue strengthening the institution’s capacity to represent the government effectively.
Solicitor General Dr Ally Possi said the office had spent about eight years representing the government and its institutions in domestic and international civil and arbitration proceedings.
Its work has included disputes connected with major strategic investments, including the Standard Gauge Railway and Julius Nyerere Hydropower Project, as well as cases involving taxation, energy, mining and natural gas.
Possi said adverse judgments in major disputes could expose the government to significant financial costs, making effective legal representation an important element of fiscal risk management.
“When we lose a case, the government can be required to pay large amounts of money,” he said.
For Tanzania, where large infrastructure and investment projects increasingly involve complex contracts and international investors, the figures suggest that government legal capacity is becoming more than an administrative function. It is also an important line of defence against liabilities that could ultimately fall on taxpayers.
