Tanzania reaps 1.32tri/- in dividends from its public institutions

DAR ES SALAAM: THE Tanzanian government has collected a record 1.32tri/- in dividends and other contributions from public institutions and companies in which it holds minority shareholdings as of June 29 this year, marking a 30 per cent increase from 1.02tri/- collected during the same period last year.

Treasury Registrar Nehemiah Mchechu announced the figures on Tuesday during the National Dividend Day ceremony held at the State House in Dar es Salaam, where President Samia Suluhu Hassan was the guest of honour.

Mr Mchechu said contributions from public institutions have more than doubled since President Samia assumed office in 2021, rising from 637bn/- to 1.32tri/-, representing a 108 percent increase.

“If we included all revenues generated by institutions supervised by the Office of the Treasury Registrar, the amount would be significantly higher,” he said.

He explained that this year’s total excludes contributions from four institutions: Tanzania Airports Authority, which contributed 70.7bn/-, the Ngorongoro Conservation Area Authority with 114.14bn/-, Tanzania National Parks with 208.5bn/-, and the Tanzania Wildlife Management Authority, which contributed 90.39bn/-.

According to Mr Mchechu, including those institutions would have raised the total government collections to approximately 1.81tri/-.

Speaking at the same event, the Treasury Registrar said government borrowing for strategic development projects has played a crucial role in expanding the capital base of state-owned enterprises and strengthening long-term national wealth.

He cited flagship investments such as the Standard Gauge Railway and the Julius Nyerere Hydropower Project, saying loans used to finance the projects will eventually be converted into capital for the respective public institutions once construction is completed.

“When the Standard Gauge Railway is completed, the investment financed through borrowing will become capital for the Tanzania Railways Corporation, strengthening the institution’s asset base,” he said.

He noted that the total capital of public institutions has increased from 67tri/- when President Samia took office in 2021 to 92tri/-, representing a 37percent growth.

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Mr Mchechu added that the increase reflects a combination of government investment, productive borrowing and growth in the value of public assets.

He expressed confidence that once major strategic projects, including the SGR and the Julius Nyerere Hydropower Project, are completed, the total capital of public institutions is expected to reach 130tri/-, further enhancing the financial strength and sustainability of state-owned enterprises.