Purpose: This article reports on a study that explored how the Tanzanian government can support the development of research-intensive universities in its higher education system. Design/methodology/approach: Data were collected through document analysis and in-depth semi-structured interviews with participants obtained from national higher education departments, senior university leadership offices and academic staff in both public and private universities. Findings: The study identified four essential systemic elements for developing research-intensive universities (RIUs): diversification of universities based on their core functions, allocation of financial resources according to research performance, relaxation of university governing systems and accrediting universities based on research outcomes. Practical implications: The study identified essential systemic elements that could address the issue of developing RIUs in low- and middle-income countries (LMICs). These elements present a potential solution for developing a diverse higher education system capable of sustaining RIUs, offering opportunities to produce innovative knowledge, develop diverse skills and meet the needs of a range of students, employers and businesses. Originality/value: This study adds to the body of knowledge on how LMICs can develop well-functioning RIUs. The study also contributes to the ongoing debates among higher education stakeholders, including governments, academics, students and the community, on the changing dynamics of higher education and its role in national and regional development.