By The Respondent Reporter
Dar es Salaam. President of Tanzania, Her Excellency Dr. Samia Suluhu Hassan, on Tuesday, June 10, 2025 received a historic Sh1.028 trillion in dividends and contributions from public institutions and companies in which the government holds minority shares.
This collection, under the supervision of the Office of Treasury Registrar (OTR), which marks the highest ever since the establishment of the OTR in 1959, represents a 68 percent increase compared to the same period last year and 34 percent of total collections for the fiscal year 2023/24.
During the same period last year some Sh611 billion was handed to the Head of State, the amount which climbed to Sh767 billion by the end of the 2023/24 financial year.
Tuesday’s figure (Sh1.028 trillion) is expected to grow further as collections continue until June 30, 2025.
President Samia attributed this year’s achievement to the positive response from public institutions in implementing her directives to enhance productivity and operational efficiency.
As a matter of fact, she expressed pride in the government's Sh86.3 trillion investments in public institutions and companies with minority government ownership.
This level of return on government investments marks a strong turning point in public sector financial management and reflects a maturing institutional culture that aligns more closely with accountability and performance expectations.
However, the President’s measured tone regarding unmet expectations reveals a deeper strategic intent — to reshape public enterprises not merely as service institutions but as financially viable contributors to national revenue.
Despite the progress, the President noted that the current level still falls short of government expectations for the contribution of public institutions to non-tax revenue.
“Our goal is to reach at least Sh1.5 trillion in the coming year, and I believe we can achieve that,” she declared.
She tasked the Treasury Registrar, Mr. Nehemiah Mchechu, with reviewing all institutions and setting clear revenue targets for each, to ensure the government meets this target.
The call for specific revenue goals for every public entity signals a shift toward a more results-based management system.
This approach emphasizes not only the importance of collecting revenue but also the necessity of structured accountability, where institutions are judged by measurable outputs.
To further improve efficiency and maximize non-tax revenues and dividends in the coming year, President Samia issued four strategic directives.
President Samia emphasized innovation as a catalyst for institutional transformation.
Her challenge to institutions to solve their problems internally—rather than rely on government bailouts—represents a significant philosophical shift from dependency to entrepreneurial autonomy within the public sector.
Her invocation of the capital markets as a tool for problem-solving also implies a growing interest in integrating public institutions more deeply with financial market mechanisms, encouraging them to become more agile and self-reliant.
She also underscored the importance of a comprehensive legal framework to support government investments, directing the Ministry of Planning and Investment to finalize the long-awaited Public Investment Law.
This law would provide a more coherent legal basis for managing and overseeing state investments, which is crucial for transparency and long-term sustainability.
The President’s emphasis on strengthening ICT systems reflects a growing consensus that digital transformation is critical to institutional reform.
Better data systems lead to better decision-making, quicker service delivery, and ultimately, stronger financial performance.
The directive to modernize IT infrastructure is not just about operational efficiency but also about making public institutions more responsive, transparent, and competitive.
She closed her list of directives with a call to continue investing in human capital—through both training and appropriate incentives.
This underscores the administration’s understanding that institutional reform cannot succeed without empowered and motivated staff.
“This will improve work morale and ultimately increase institutional productivity,” said President Samia.
TR’s insights
Speaking earlier, Mr Mchechu reported that the Sh1.028 trillion came from 213 entities—195 public institutions and 18 minority-owned companies.
However, 57 institutions (22 percent) have not yet submitted their dividends.
“We will continue strengthening oversight to ensure public institutions contribute meaningfully to socio-economic development,” he affirmed.
Out of the total amount of Sh1.028 trillion, 59 percent came from profit-making entities as dividend, indicating positive results from ongoing reforms directed by the President.
Contributions based on 15 percent of gross revenue accounted for 35 percent, while the remaining six percent was generated from other sources including loan repayments, interest from on-lent funds, and fees from an advanced telecommunications traffic monitoring system (TTMS).
However, Mr Mchechu noted that challenges still exist, particularly in reducing dependency on government subsidies and turning around loss-making institutions.
The concern over loss-making institutions highlights the need for deeper structural reforms.
It also reflects a broader conversation about the role of government in business—how far to go in supporting unprofitable entities versus allowing market dynamics to guide viability.
He emphasized the Treasury's commitment to the President’s R4 philosophy, particularly focusing on R2 – Reforms and Rebuild.
The mention of the “R4 philosophy,” especially the focus on Reforms and Rebuild, indicates that the government is not merely pursuing short-term gains, but rather is laying the foundation for a more resilient and adaptive public enterprise ecosystem.
The incorporation of philosophical frameworks into public management could also be seen as a signal to stakeholders that reform is not optional—it is now policy.
Support from government and parliament
Prof Kitila Mkumbo, Minister for Planning and Investment, pledged his ministry’s commitment to ensuring that public institutions continue to deliver tangible results for the country's development.
For the 2025/26 financial year, the ministry, through the OTR, will implement robust strategies to enhance oversight and performance evaluation of public institutions.
This commitment from the ministry will be crucial in ensuring that the President’s directives are not merely ceremonial but translated into enforceable policy frameworks and accountability tools.
Institutionalizing performance assessment could serve as a feedback mechanism for ongoing reform.
Recognition and awards
In recognition of exemplary performance, 14 institutions and organizations received awards for their outstanding contributions to the government’s main revenue fund for the fiscal year 2024/2025.
This symbolic gesture of rewarding top-performing institutions serves as both motivation and benchmarking.
It reinforces the principle of meritocracy within the public sector and provides a model for underperforming entities to emulate.
This historic achievement reflects President Samia’s reform agenda in public sector governance and her focus on self-sustaining institutions.
As Tanzania aims for higher non-tax revenues in the next fiscal year, the groundwork laid on Tuesday is a signal of sustained commitment to efficiency, accountability, and economic transformation.
The future of public sector management in Tanzania is now tied to measurable results, strategic leadership, and institutional independence—hallmarks of a modern, reform-minded state.
In the first group, which recognized companies paying the largest dividends, Twiga Minerals Corporation led with Sh93.6 billion, followed by Airtel Tanzania at Sh73.9 billion, and NMB Bank Plc at Sh68.2 billion.
The second group highlighted institutions contributing 15 percent of gross revenue, where Tanzania Ports Authority (TPA) topped the list with Sh181.1 billion.
It was followed by National Identification Authority (NIDA) at Sh38.8 billion and Tanzania Forest Services Agency (TFS) at Sh29.8 billion.
The third group celebrated entities with the highest year-on-year growth in contributions.
Tanzania Petroleum Development Corporation (TPDC) saw a 100 percent increase, National Housing Corporation (NHC) grew by 363 percent, and Tanzania Agricultural Development Bank (TADB) by 285 percent, reflecting the impact of improved business models and operational strategies.
The fourth group honored institutions contributing consistently for five consecutive years.
Tanzania Communication Regulatory Authority (TCRA), Tanzania Shipping Agencies Corporation (TASAC), and The Business Registrations and Licensing Agency (BRELA) received awards for their reliable financial discipline and sustainability.
The fifth group was dedicated to transformed institutions that moved from persistent losses to profitability.
The standout awardee was The Tanzania Zambia Mafuta (TAZAMA) Pipeline, which made a turnaround from over ten years of losses to posting a Sh6.6 billion dividend—an astonishing 1,214 percent growth over five years.
The sixth and final group recognized Bank of Tanzania (BoT) for its exceptional and unique contribution to the Government Consolidated Fund, acknowledging its role as a cornerstone of macroeconomic and fiscal stability.