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The government has received a Sh15 billion dividend from Puma Energy Tanzania, a development Finance Minister Khamis Mussa Omar says reflects the company’s improved performance and growing contribution to the economy.
The dividend was disclosed yesterday after Mr Omar met with a delegation from Puma Energy Tanzania, led by its Managing Director, Fatma Abdallah, at the Ministry of Finance offices at Treasury Square in Dodoma.
Mr Omar welcomed the payment, saying profitable operations by companies in which the government has an interest are important because they create an additional revenue stream for financing public priorities.
“The payment of a dividend is a sign that the company continues to perform well and make profits, which also increases its contribution to the development of the country,” he said.
The development comes as the government continues to pursue measures aimed at strengthening domestic revenue collection and improving the performance of public investments and businesses operating in strategic sectors.
For Tanzanians, the significance of such dividends extends beyond the company itself. Government earnings from profitable enterprises can provide additional resources for public services and development programmes, reducing pressure on other sources of government revenue.
Mr Omar said the government would continue implementing measures to strengthen the energy sector despite volatility in global energy markets.
He said the objective was to ensure that consumers could access energy services at affordable prices while reducing the impact of international price movements on the domestic market.
The minister also called for fair competition among players in the energy industry, saying competition should benefit consumers while protecting government revenue.
“Fair competition is necessary to protect the interests of citizens while ensuring that government revenue is not affected by unproductive competition,” he said.
Ms Abdallah commended the government for measures aimed at strengthening the energy sector and improving the environment in which companies operate.
She said Puma Energy Tanzania would continue working with the government to strengthen its operations and increase its contribution to the economy.
“We will continue working closely with the government to strengthen our operations and increase our contribution to the country, including increasing dividends to the government,” she said.
Ms Abdallah also said government interventions had contributed to lower fuel costs, a development she said was benefiting consumers and the broader economy.
Fuel prices have a direct impact on the cost of transportation, production and distribution of goods, meaning changes in pump prices can have wider implications for household expenses and business operating costs.
The meeting also discussed strategic areas of cooperation between the government and Puma Energy Tanzania, including the company's operations and its contribution to the country's energy sector.
The government has in recent years placed greater emphasis on ensuring that investments and businesses operating in strategic sectors contribute more effectively to economic growth, job creation and public revenues.
The Sh15 billion dividend therefore provides both an immediate boost to government coffers and an indication of the potential benefits of stronger corporate performance in the energy sector.