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Pwani – The government is working to increase its return on investment from companies in which it holds minority shares, aiming to raise it from 7% to over 10% in the next financial year.
This announcement was made on Friday, March 28, 2025, by Chief Secretary Ambassador Dr. Moses Kusiluka in Kibaha, Pwani Region, during the closing session of a three-day meeting for directors of boards from companies with minority government shares.
"I challenge you to increase the return on investment from 7% to over 10% every year. To do this, you need to improve how efficiently the companies operate," he said.
The Office of the Treasury Registrar (OTR) oversees 308 institutions, including 56 companies in which the government has minority shares.
A total of Sh86.3 trillion has been invested in these institutions. Out of that, Sh2.9 trillion has been invested in companies with minority government shares, while Sh83.4 trillion has gone to fully government-owned institutions.
Ambassador Kusiluka also encouraged the directors to work on increasing the dividends the government receives from these companies.
"I believe that in the next financial year, we will see an increase in the dividends from the companies you manage. This is the challenge I leave with you," he said during the meeting, which was organized by the Office of the Treasury Registrar.
In the previous financial year, the government received Sh195 billion in dividends from its minority shareholding companies, according to OTR data.
"Our success will show the government’s efforts under President Dr. Samia Suluhu Hassan to create a business-friendly environment," he added.
Dr. Kusiluka expressed confidence that the new guidelines for directors of boards in companies with minority government shares, launched earlier this week, would help improve efficiency and contribute more to the government’s Consolidated Fund.
"I have reviewed the guidelines and found them full of useful advice that will help board directors do their jobs well and on time," he said, praising the OTR for developing the guide.
He urged board directors to use the guide to improve their work and make a stronger impact in their roles.
Also read:Government targets higher returns from minority shareholdings
Meanwhile, Treasury Registrar Mr. Nehemiah Mchechu encouraged government representatives on the boards of companies with minority shares to represent Tanzania with pride.
He reminded the directors, who are government representatives on the boards, that they are responsible for ensuring the government benefits from its investments in these companies.
"You are the government’s eyes, so take your positions seriously. If you feel you cannot fully commit to the role, it is better to step aside for someone else to take your place," Mr. Mchechu warned.
The meeting’s theme, "Leveraging Technology for Enhanced Performance," highlighted the importance of using technology to improve efficiency and growth within the companies where the government holds minority shares.
