Tanzania's state-owned enterprises and companies in which the government holds stakes paid a record TZS1.327 trillion in dividends and other contributions to the government this financial year, highlighting the impact of reforms aimed at making public investments more commercially productive while strengthening non-tax revenue.
The record payout, announced by Treasury Registrar Nehemiah Mchechu today during the government's annual Gawio Day event at State House, represents a 30% increase from TZS1.028 trillion remitted in 2025 and more than doubles the TZS637 billion collected in 2021, when President Samia Suluhu Hassan began her administration.
The figures underscore Tanzania's strategy of transforming state-owned enterprises and public institutions into financially stronger entities capable of generating higher returns while supporting the country's long-term development agenda under Vision 2050.
"This is not simply about collecting larger dividends," Mchechu said. "It reflects institutional reforms, stronger governance and improved productivity across public investments."
Of the TZS1.327 trillion collected as of June 29, commercial state-owned enterprises and companies in which the government owns shares contributed TZS800 billion, accounting for 60% of the total. Non-commercial public institutions transferred TZS406 billion, representing 30%, while TZS121 billion came from other sources.
The latest performance signals a gradual shift in the role of public institutions, which are increasingly expected to generate measurable financial returns alongside the delivery of public services.
Mchechu said recurrent government subsidies for salaries and operational expenses among non-commercial institutions had declined by an average of 12.8% over the past five years, with some agencies now operating without such support.
The Tanzania Bureau of Standards (TBS), for example, no longer depends on government funding for its recurrent expenditure, reflecting broader efforts to improve financial sustainability across public institutions.
A significant expansion of government-owned assets has also accompanied the stronger financial performance.
The capital base of Tanzania's public institutions has grown from TZS67 trillion in 2021 to TZS92 trillion this year, an increase of 37%, driven by retained earnings and strategic government investments.
That figure is expected to rise to between TZS130 trillion and TZS140 trillion once flagship infrastructure projects, including the Standard Gauge Railway (SGR) and the Julius Nyerere Hydropower Project, are completed and formally transferred to state institutions responsible for their management.
The expanding asset base is expected to strengthen future dividend payments as more strategic investments begin generating commercial returns.
The government is targeting public institutions to contribute about 10% of Tanzania's non-tax revenue by 2030, although Mchechu said the objective could be achieved earlier than planned.
He noted that if revenues collected directly by four major conservation agencies the Tanzania National Parks Authority (TANAPA), the Ngorongoro Conservation Area Authority (NCAA), the Tanzania Wildlife Management Authority (TAWA) and another conservation institution whose revenues are currently reported through the Tanzania Revenue Authority (TRA) had instead been channelled through the Treasury Registrar's Office, total collections would have reached TZS1.811 trillion this year.
The results also reflect the government's continued restructuring of underperforming state enterprises.
The Tanzania Posts Corporation reported a TZS2.8 billion profit during the 2024/25 financial year, while the State Mining Corporation (STAMICO) earned TZS20.5 billion, continuing a turnaround attributed to reforms aimed at improving efficiency and corporate governance.
Mchechu said the reforms were guided by President Samia's governance philosophy of Reconciliation, Resilience, Reform and Rebuilding, with particular emphasis on strengthening accountability and rebuilding financially sustainable public institutions.
The mining sector is also becoming a more important contributor to government revenues through state equity participation.
The number of mining projects in which Tanzania holds free carried interest increased from 10 in 2025 to 15 in 2026, while negotiations are underway on another 10 projects.
Among commercial entities, Twiga Minerals made the largest dividend contribution at TZS221.9 billion, followed by NMB Bank with TZS96.9 billion and Airtel Tanzania with TZS65.4 billion.
Other major contributors included TPDC (TZS15.1 billion), Puma Energy (TZS15 billion), NBC Bank (TZS15 billion), TIPER (TZS15 billion), UTT AMIS (TZS11 billion), TPC Sugar (TZS10.6 billion) and the National Housing Corporation (TZS10 billion).
Among non-commercial institutions, the Tanzania Ports Authority (TPA) made the largest contribution of TZS205.5 billion, followed by the National Identification Authority (NIDA) with TZS61 billion, nearly double its previous contribution of TZS32.2 billion.
Other significant contributors included the Tanzania Communications Regulatory Authority (TCRA), Tanzania Forest Services (TFS), TASAC, OSHA, TBS, BRELA, Tanzania Railways Corporation (TRC), EWURA and LATRA, each contributing more than TZS10 billion.
Mchechu said institutions that do not generate dividends should not necessarily be viewed as underperforming, noting that strategic public service providers such as TANESCO, Benjamin Mkapa Hospital, the Jakaya Kikwete Cardiac Institute (JKCI) and the Muhimbili Orthopaedic Institute (MOI) create value through essential public services rather than direct financial returns.
Their contribution to national development, he said, would be recognised separately during the Chief Executive Officers Forum scheduled for August in Arusha.
The record dividend collection suggests Tanzania's public sector reforms are beginning to deliver measurable fiscal benefits, with the government increasingly seeking to balance commercial performance with broader economic and social objectives as it prepares for Vision 2050.
