As Tanzania seeks to strengthen its fiscal independence and reduce reliance on external borrowing, non-tax revenue (NTR) particularly dividends and statutory contributions from State-Owned Enterprises (SOEs) is playing an increasingly pivotal role.
With government investments in public entities and minority shareholdings now valued at TSh86.3 trillion (approximately $33.5 billion), authorities are focusing on maximizing returns from these assets to fund critical development priorities.
In a move that underscores this shift, the government has declared June 10, 2025, as Dividend Day a national checkpoint to evaluate the financial and social performance of SOEs.
While largely symbolic on the surface, the initiative represents a deeper recalibration of fiscal strategy. “Non-tax revenue is not a fiscal afterthought it’s a structural foundation of Tanzania’s long-term budgetary resilience,” said Nehemiah Mchechu, Treasury Registrar.
“It allows us to finance development without increasing tax burdens or relying heavily on foreign debt.”he added
Under President Samia Suluhu Hassan, NTR collections have grown steadily. Between fiscal years 2020/21 and 2023/24, receipts from dividends, statutory contributions, and other remittances increased by over 20 percent, from TSh637.67 billion to TSh767.2 billion.
Mchechu attributes this to both improved SOE performance and tighter enforcement mechanisms. “We are aligning institutional performance with national fiscal goals,” he said.
“SOEs must now deliver not only services but also financial returns that can be reinvested into core development sectors.”he added
Looking ahead, the government has set an ambitious non-tax revenue target of TSh1.113 trillion for FY2024/25, with a deadline of June 30 for all obligated institutions to remit.
This signals a more aggressive posture toward enforcement and public sector accountability. “Institutions must meet dual mandates achieving their service objectives and generating measurable financial value,” Mchechu added. “Every shilling remitted becomes a classroom, a clinic, or a clean water project.”
This approach also serves a broader economic philosophy: reducing Tanzania’s dependence on concessional loans and donor aid.
The NTR framework includes dividends, 15% gross revenue contributions, 70% of institutional surpluses, and revenues from systems like the Telecom Traffic Monitoring System (TTMS).
These funds flow directly into the Government Consolidated Fund, supporting strategic sectors such as education, healthcare, infrastructure, and water supply.
The financial strategy is underpinned by a legal framework that mandates contributions through the Public Finance Act, Companies Act, and Public Corporations Act.
These laws have enabled the Treasury Registrar to institutionalize compliance and enforce performance-linked remittance obligations.
“Each shilling remitted is a statement of national self-reliance,” said Neema Musomba, Director of Management Services at the OTR. “This is about securing Tanzania’s future through smart stewardship of public assets.”
Technology and governance reforms are also driving the turnaround. The adoption of digital platforms like PlanRep and government-wide e-payment systems has improved transparency, reduced leakage, and ensured timely transfers.
According to Ms. Lightness Mauki, Director of Monitoring and Evaluation at the OTR, these tools have also deepened civic trust.
“Citizens begin to see themselves not just as passive recipients of services, but as stakeholders in public finance,” she said.
“It’s about building a transparent, accountable system where development outcomes are visible and measurable.”she added
Dividend Day 2025, therefore, is more than a celebration it is a signal of policy maturity. Tanzania is demonstrating that sound management of state assets, backed by transparency and performance incentives, can unlock domestic capital for national development.
As global capital markets tighten and debt vulnerabilities rise across emerging markets, the country’s model offers a pragmatic path toward fiscal sovereignty and sustainable growth.