Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko, has received a government dividend of over TZS 4.35 billion from the Tanzania-Zambia Oil Pipeline Company (TAZAMA).
The dividend was received on August 26, 2024, in Dar es Salaam, in the presence of leaders from both Tanzania and Zambia.
This marks the first dividend payout in five years, with the last one being in 2019.
Dr. Biteko stated that the dividend is a direct result of President Samia Suluhu Hassan’s recent visit to Zambia, where she emphasized the importance of managing projects effectively to bring tangible benefits and improve the lives of people in both countries.
He commended the TAZAMA Board and the Ministry of Energy for their efforts, attributing the success to the President’s guidance during her visit.
Dr. Biteko also urged TAZAMA to continue managing the pipeline efficiently to ensure ongoing profitability.
He mentioned that plans are underway to expand the TAZAMA pipeline's diameter from eight inches to twelve inches.
Additionally, the governments of Tanzania and Zambia are in the process of procuring materials for constructing a larger oil pipeline with a diameter of 24 inches.
This development is expected to reduce transportation costs and protect the infrastructure.
Minister of State in the President’s Office for Planning and Investment, Prof. Kitila Mkumbo, highlighted that TAZAMA, a company that was previously on the verge of collapse, has shown signs of revival by distributing dividends to the government.
He expressed pride in witnessing the government receiving a dividend, a reversal of the usual situation where organizations seek financial support from the government.
Treasury Registrar Nehemiah Mchechu noted that TAZAMA, a company that has been in existence for 58 years, has shown significant promise by resuming dividend payments.
He attributed this progress to the implementation of President Samia Suluhu Hassan's 4R strategy.
