OTR steps up reforms to boost investment returns

By The Respondents Reporter

The Office of the Treasury Registrar (OTR) is stepping up institutional and financial reforms aimed at increasing Non-Tax Revenue (NTR) and strengthening returns from Government investments, building on TZS 1.37 trillion collected during the 2025/26 financial year.

The Office has set itself an ambitious internal target of collecting Sh2 trillion in non-tax revenue during the 2026/27 financial year, well above the Sh1.79 trillion target assigned to it by the Government.

Ms Mauki was speaking on Wednesday during a breakfast meeting with editors ahead of the C-CEOs Forum 2026, where she outlined reforms aimed at strengthening institutional performance and enhancing the contribution of public institutions to Tanzania’s economic transformation.

At the revenue-collection level, she said, the implementation of the Budget Act 2025 increases the contribution of non-commercial public institutions from 15 per cent to 40 per cent of gross revenue, strengthening the flow of revenue to Government while reinforcing institutional financial responsibility.

This effort is being supported by stronger digital systems. Mauki said the Public Institutions Management System (PIMS) has been integrated with national systems, including the Government e-Payment Gateway (GePG), the Government Human Resources and Payroll Management Information System (MUSE) and the Electronic Records Management System (ERMS).

“The integration enables collection and management information to be accessed within the system, improving efficiency, visibility and predictability while reducing reliance on manual processes,” asserted Ms Mauki.

But improving revenue collection is only one part of the strategy as OTR is also seeking to increase returns from Government investments, particularly through greater participation in the mining sector.

Ms Mauki said the government, through the Treasury Registrar, currently holds shares in 16 mining projects, up from 10 in 2024/25.

The increase reflects expanding government participation in the sector and creates greater opportunities to generate returns from the country’s mineral resources.

For such investments to deliver greater value, however, the institutions managing them must perform effectively.

Ms Mauki said OTR has therefore engaged 13 consulting firms to independently assess public institutions under its oversight and recommend areas for improvement.

The exercise began in January 2026, with the first phase now completed.

The assessment is part of a wider push for financial self-reliance.

Ms Mauki said dependence on Government subsidies by non-commercial public institutions has declined by an average of 12.8 per cent over the past five years, reflecting efforts to improve efficiency and strengthen internally generated resources.

Progress is already evident in several institutions.

The Tanzania Railways Corporation (TRC) has started meeting salary obligations from its own resources, while the Tanzania Petroleum Development Corporation (TPDC) and State Mining Corporation (STAMICO) are self-reliant.

The Tanzania Bureau of Standards (TBS) is at the final stage of achieving a similar position.

For commercial public institutions, Ms Mauki outlined a phased approach to accelerate the transition towards greater competitiveness. In the short term, covering one to two years, the focus will be on reducing dependency, conducting annual performance assessments and introducing performance contracts.

Over three to five years, the strategy includes putting in place the Sh1 trillion in capital required by suitable institutions and providing development support as equity rather than conventional grants.

In the longer term, institutions that meet the necessary criteria could access the capital market through initial public offerings, while Government reviews laws affecting recruitment and procurement to enable institutions to compete more effectively, including internationally.

The reforms point to a broader shift in how Government assets are viewed and managed.

“Boosting non-tax revenue is not simply about collecting more money. It is part of a broader process of building capable public institutions that can perform effectively, become more self-reliant, attract capital and generate greater returns from Government assets and resources,” Ms Mauki said.

For his part, the Director of Non-Commercial Enterprises at the OTR, Mr David Shambwe, said the focus is now shifting towards turning Government assets into productive investments that generate value, returns and measurable outcomes, rather than limiting their role to ownership and preservation.

He explained that this shift is becoming increasingly important as the value of Government investments under the oversight of OTR continues to grow.

Going by the official OTR figures, the value of these investments increased from Sh67.73 trillion in 2020/21 to Sh92.28 trillion in 2024/25, representing a 37.7 per cent increase over the five-year period.

For Mr Shambwe, the growing value of these investments brings with it a greater responsibility to ensure that Government assets are not held simply for the sake of ownership, but are actively deployed to create value and drive economic development.

The approach is aligned with Tanzania’s aspirations under Dira 2050.

The OTR identified energy and minerals, transport and logistics, financial services, tourism and agriculture as key sectors in advancing this ambition.

For his part, the Director of Finance and Accounts at the Office OTR, Mr Hassan Mohamed, said that over the next 25 years, Tanzania will need to identify and leverage new sources of financing to drive growth in productive sectors, while public institutions and Government corporations are expected to contribute to increased domestic revenue generation and improved returns on Government investments.

The contribution of these institutions, he said, should extend beyond revenue generation alone.

They are also expected to increase production and create decent jobs, expand Tanzania’s participation in regional and international markets, increase foreign exchange earnings and raise the contribution of non-tax revenue to Government income.

Moreover, strategic investments by public institutions can stimulate the growth of other sectors, including agriculture, manufacturing and tourism, thereby positioning the public sector as a catalyst for wider economic activity.

These issues form the basis of the C-CEOs Forum 2026, themed: “High-Performing State-owned enterprises for a Competitive, Inclusive and Resilient Economy: Advancing Dira 2050.”

The OTR said the forum will bring together board chairpersons, chief executive officers of public institutions and other key stakeholders to discuss leadership, accountability, institutional performance and strategies for improving outcomes.

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