The government’s total domestic and foreign investments have continued to record steady growth, reaching TZS92.29 trillion as of June 30, 2025 a seven percent increase from TZS86.3 trillion recorded in the 2023/24 financial year.
The government’s investment portfolio comprises 255 Public and Statutory Corporations (PSCs), along with 45 minority-owned firms and 10 foreign institutions, forming a vital backbone of Tanzania’s non-tax revenue base.
Five-year growth snapshot
Over the past five years, government domestic investments have increased consistently, rising from TZS67.01 trillion in 2020/21 to TZS90.61 trillion in 2024/25, reflecting stronger performance and improved governance among State-Owned Enterprises (SOEs).
Meanwhile, foreign investments grew from TZS722.94 billion to TZS1.68 trillion in the same period, underscoring Tanzania’s expanding global investment footprint.
According to the Treasury Registrar’s Statement for the year ended June 30, 2025, the growth is attributed to improved performance among key PSCs and enhanced operational efficiency across several entities.
Treasury Registrar Mr. Nehemiah Mchechu said the rise demonstrates the government’s continued commitment to strengthening the management and governance of public investments.
“This steady increase in domestic investments reflects improved corporate governance and alignment with national development goals,” said Mr. Mchechu.
Major contributors to portfolio growth
The report shows that several large entities significantly influenced overall equity growth.
The National Social Security Fund (NSSF) recorded a 29 percent increase in net assets — from TZS7.2 trillion to TZS9.3 trillion — driven by new member registrations from the informal sector and integration with other government systems such as BRELA and TRA.
Similarly, the Public Service Social Security Fund (PSSSF) posted a 13 percent growth in net assets, rising from TZS8.12 trillion to TZS9.2 trillion, mainly due to increased member contributions following new recruitments and promotions of civil servants.
The Bank of Tanzania (BoT) also reported a notable rise in net assets, up 82 percent from TZS1.3 trillion to TZS2.36 trillion, reflecting robust financial performance and prudent reserve management.
Mr. Mchechu said updated financial statements now reflect more accurate shareholding and capital fund values, contributing to the recorded growth.
“We have also seen an increase in revaluation reserves and accumulated surpluses across several corporations, alongside improved profitability among many SOEs,” he added.
He further noted that while most entities performed well, a few particularly those still in development stages such as mining companies recorded temporary declines in equity due to ongoing capital expenditures and limited revenue generation.
Only two State-Owned Enterprises Air Tanzania Company Limited (ATCL) and Tanzania Railways Corporation (TRC) reported negative equity positions during the review period.
Overall, non-commercial entities accounted for 72 percent of total investments valued at TZS65.44 trillion, compared to TZS25.17 trillion (28 percent) held in commercial entities.
Stronger returns and higher non-tax revenue
The improved performance of SOEs not only raised the government’s investment value but also boosted non-tax revenue collections.
According to the OTR report, non-tax revenue grew by 34 percent from TZS767 billion in 2023/24 to TZS1.03 trillion in 2024/25 equivalent to 92 percent of the annual target.
The increase reflects stronger profitability and improved financial discipline among SOEs.
Most of the collections (92.01 percent) came from dividends and contributions calculated as 15 percent of gross revenue, while the rest was generated from surplus remittances, loan repayments, and the Telecommunications Traffic Monitoring System (TTMS).
A comparison of budgeted versus actual collections shows that the Office of the Treasury Registrar achieved over 50 percent of the target for contributions, dividends, and loan repayments, while surplus remittances and TTMS recorded 44 percent and 37 percent, respectively.
“The improved financial performance of public entities has translated into higher returns to the government, reinforcing our commitment to reducing dependency on tax revenues and promoting sustainable financing of development initiatives,” said Mr. Mchechu.
He reaffirmed the government’s commitment to ensuring the sustainable growth of its investment portfolio through continued reforms, close monitoring, and enhanced accountability of public enterprises.
“This growth underscores the progress we are making in ensuring that public investments deliver value to citizens,” he underscored.
Mr. Mchechu added that the OTR would continue collaborating with institutions to optimize performance, transparency, and the contribution of SOEs to the national economy.
Governance reforms take center stage
Vice President Dr. Philip Mpango, speaking during the opening of the CEOs Forum 2025 in Arusha on August 24, stressed that reforms in public institutions are not optional but a responsibility, particularly given the scale of government investment.
“Strong governance of public institutions is a key government agenda to ensure that this massive investment delivers tangible returns for the nation,” he said.
He added that these institutions must provide high-quality services, stimulate job creation, and contribute significantly to national revenue.
Foreign investments nearly double
The government’s investments in ten foreign institutions rose sharply to TZS1.68 trillion as of June 30, 2024 a 98 percent increase from TZS846.22 billion the previous year.
The growth was driven by exchange rate fluctuations, accrued reserves, and operational gains in key institutions.
While the government’s shareholding remained largely unchanged across most entities, there were slight increases in holdings within the African Development Bank (AfDB) from 123,705 to 124,094 shares and the Eastern and Southern African Trade and Development Bank (PTA Bank) from 10,410 to 10,418 shares.
This upward trend underscores Tanzania’s strategic approach to diversifying its investment portfolio internationally while maintaining steady stakes in key regional and global financial institutions.