TREASURY REGISTRAR’S CORNER. Public entities anchor NTR, minority interest companies quietly outperform on efficiency
DAR ES SALAAM: WITH the 2024/25 non-tax revenue (NTR) figures made public on June 10, 2025, the focus now shifts to what those numbers actually reveal particularly regarding the performance dynamics between Public and Statutory Corporations (PSCs) and Government Minority Interest Companies, the two main pillars of the government’s non-tax revenue portfolio.
As of June 10, total nontax revenue collections for the current financial year amounted to 1.03 tri/- the highest in history since the establishment of the Office of the Treasury Registrar in 1959, marking a significant milestone in Tanzania’s ongoing effort to mobilise domestic resources outside the tax net.
This amount consists mainly of dividends from state-owned enterprises and government minority interest companies, which contributed 603.4 bn/- 59 per cent of the total collections. Contributions equivalent to 15 per cent of gross revenue accounted for 363.4 bn/-, representing 35 per cent of the total, while other miscellaneous revenues amounted to 61 bn/-, or 6 per cent of the collections.
These figures reflect a positive trend and serve as evidence of the results of operational reforms being implemented under the directives of President Samia Suluhu Hassan.
As the Head of State emphasised, “Despite these achievements, this level still does not meet the Government’s expectations regarding the contribution of Public entities and enterprises to the Government Consolidated Fund for NTR.” The government’s goal is to reach at least1.7 tri/- by next year. “I am optimistic we can achieve it. I instruct you, Treasury Registrar, to review all institutions and set specific revenue targets for each, so we can meet this goal,” She exuded optimism as she gave a clear directive.
She went on to add: “Let us all carry this responsibility and God willing, when we meet next year at the dividend event, we will be proud of the results of our efforts.” PSCs, as expected, contributed the largest share with 764.1 bn/-, representing roughly 74 per cent of the total. Minority Interest Companies, while contributing less in absolute terms, generated a solid 263.4 bn/-, accounting for the remaining 26 per cent.
But the real insight lies in the structure behind those figures. PSCs, with 195 entities reporting revenue, posted an average contribution of about 3.9 bn/- per entity.
These entities are the backbone of the public sector large, widely distributed and often carrying responsibilities that extend beyond revenue generation, including infrastructure development, public service delivery and regulation.
Their wide coverage provides fiscal stability and ensures economic inclusion, but it also means they operate with mixed incentives, balancing commercial goals with broader national priorities.
As Treasury Registrar Nehemiah Mchechu stated, “These figures are evidence of a positive trend and the results of operational reforms we are implementing under Her Excellency President’s guidance.” In contrast, Minority Interest companies are fewer in number and narrower in scope, with only 18 out of 56 entities reporting revenue this year.
Yet their average contribution per reporting entity was a striking 14.6 bn/- nearly four times higher than that of PSCs. These minority stakes represent government investments in profitable, well-managed private or joint-venture companies, particularly in sectors like finance, telecommunications and extractives.
He further noted, “My office recognises that despite all these achievements, we still have a significant task to continue making operational and managerial improvements.” “We need to increase the number of institutions contributing to the Government Consolidated Fund, reduce reliance on Government subsidies for operations and remove loss-making institutions from that category.” While PSCs dominated headlines through scale, it is Minority Interest Companies that are reshaping the narrative on efficiency.
With just a fraction of the reporting institutions, the companies contributed more per entity than PSCs by a wide margin.
This superior performance on a per-unit basis raises critical questions: Is the government earning more proportionally from ventures it does not directly manage than from those it controls outright?
And if so, what implications does this have for future investment or divestment decisions?
Minister responsible for Planning and Investment, Prof Kitila Mkumbo, said in the upcoming 2025/26 financial year, his Ministry, through the Office of the Treasury Registrar, is set to implement firm strategies to strengthen oversight and performance evaluation of public institutions and enterprises.
“Our aim is to improve efficiency and ensure these institutions continue delivering better results for the benefit of Tanzanians,” he underscored It is important to note that PSCs and MIs serve different purposes. PSCs are as much about delivering public services as they are about generating profit.
Deeply embedded in the state machinery, they are often tasked with mandates that prioritise accessibility, national development and infrastructure over financial returns. Their scale brings stability, but not always efficiency.
On the other hand, minority interest companies are lighter, leaner and more commercially focused. They rely on profitability and dividends rather than operational oversight and their returns reflect market success rather than direct state management.
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As Mr Mchechu pointed out, “We are encouraged by Her Excellency the President’s confidence and recognition of the importance of public institutions in driving the country’s economic development.” This is demonstrated by the increase in government investment in its entities and minority interest companies from 65.19 tri/- in 2019/20 to 86.29 tri/- in 2024/25 an increase of 32 per cent.
Alongside efforts to improve the performance of public institutions, the success of other strategic initiatives undertaken by the Office of the Treasury Registrar to increase the value of government investment for the broader benefit of the nation is also evident.
Mr Mchechu added, “We will continue to strengthen this oversight to ensure public institutions contribute appropriately to our national economic and social development.” It’s also important to acknowledge that not all institutions are structured to generate dividends due to the nature of their responsibilities but their accountability to the public is still a critical indicator of the value of public investment.
This year’s data shows that on average, each reporting Minority Interest Companies generated nearly four times the revenue of a PSC.
That does not imply that PSCs are underperforming, as many fulfil broader social and developmental mandates, but it suggests that government minority stakes, when placed in high-performing sectors, can be extremely productive with very little administrative cost.
The contrast between these two models presents important questions. Should the government consider expanding its footprint through strategic minority investments rather than building full-service PSCs from scratch? Is there merit in restructuring underperforming PSCs to operate more like autonomous, commercially driven entities with private participation?
Should evaluations of public investments be guided not only by their mission but also by their return on investment? Beneath this lies a deeper philosophical tension.
PSCs reflect a developmental state logic that emphasises control, service delivery and national presence. Government Minority Interest Companies, in contrast, reflect a market-oriented logic focused on agility, risk-sharing and capital return.
Both are necessary, but the current data suggest that Minority Interests may offer an under-utilised path to boosting revenue without expanding bureaucratic overhead.
This does not mean replacing one model with the other, but rather asking harder questions about efficiency, returns and purpose. The growth of non-tax revenue this year is a clear win but what matters now is understanding how it was earned and using those insights to shape smarter fiscal choices going forward.
- Prepared by the Office of Treasury Registrar
