How Tanzania more than doubled the returns from public investments in five years

DAR ES SALAAM: FIVE years ago, the government garnered 637.7bn/- in dividends and other statutory contributions from public institutions and companies in which it holds equity.

Today, that figure has more than doubled to a record 1.327tri/-, while the value of government investments managed by the Office of the Treasury Registrar (OTR) has grown from 67.95tri/- to 92.28tri/-.

These two sets of numbers tell the story of a remarkable transformation in the management of Tanzania’s public investments.

They reveal not only the expansion of the government’s investment portfolio but also a significant improvement in the ability of public institutions to generate greater value from those assets.

The contrast between investment growth and returns is particularly significant.

While the value of government investments increased by about 36 per cent over the five-year period, dividends and other statutory contributions increased by 108 per cent.

This means that Tanzania’s public investment success has not been driven simply by increasing the size of its portfolio, but also by improving the productivity and efficiency of existing assets.

According to Treasury Registrar Nehemiah Mchechu, the growth reflects the impact of reforms implemented across public institutions to strengthen governance, accountability, performance management and efficiency.

He said recently that the increase in dividends and other contributions demonstrates that efforts to improve institutional performance, strengthen oversight systems, embrace digital solutions and enhance leadership capacity are producing measurable results.

The progress is part of the government’s broader agenda under the leadership of President Samia Suluhu Hassan to strengthen the management of public assets and ensure that investments entrusted to public institutions generate greater value for the nation.

Through continued reforms, public institutions have been encouraged to improve efficiency, enhance accountability and focus on delivering measurable economic and social outcomes.

The five-year journey therefore represents more than an increase in revenue collections.

It reflects a shift towards a stronger public investment management approach where government assets are expected to generate greater economic value and contribute more significantly to national development.

The growth in collections has been built over time.

In the 2020/21 financial year, dividends and other statutory contributions stood at 637.7 billion/-. Collections increased to 850.3bn/- in 2021/22 before surpassing the one-trillion-shilling mark for the first time in 2022/23, reaching 1.008tri/-.

Although collections declined to 767.1bn/- in 2023/24, the recovery that followed demonstrated the resilience of public institutions and the strengthening of systems supporting government investments.

Collections increased again to 1.028tri/- in 2024/25 before reaching a historic 1.327tri/- in 2025/26.

The funds, which are remitted to the Government Consolidated Fund to support government priorities such as development projects and social services, marked a major milestone that was presented to President Samia Suluhu Hassan during the Gawio Day ceremony held on June 30, 2026, at State House, Dar es Salaam.

For Mr Mchechu, the achievement represents a broader improvement in the capacity of public institutions to contribute to national development through stronger financial performance and better management of Government assets.

At the same time, the value of government investments managed by the OTR has continued to expand.

The portfolio increased from 67.95tri/- in 2020/21 to 73.36tri/- in 2021/22, before rising to 75.79 trillion in 2022/23. It then expanded further to 86.25tri/- in 2023/24 and reached 92.28tri/- in 2024/25.

This represents an increase of approximately 36 per cent. However, the key message from these figures is that returns have grown at a much faster pace than the investment base itself.

While the portfolio expanded by slightly more than one-third, dividends and other contributions more than doubled, reflecting improved performance and value creation from public investments.

This suggests that public institutions are becoming more efficient in converting government assets into economic value.

According to Mr Mchechu, the 1.327tri/- presented during Gawio Day came from three main sources.

The largest contribution came from dividends paid by commercial public corporations and companies in which the government has ownership interests.

These dividends amounted to 800.5 billion/-, representing 60 per cent of total collections. The second source was statutory contributions equivalent to 15 per cent of gross revenue from non-commercial public institutions, which contributed 406bn/-, accounting for 30 per cent of the total.

The remaining 121.5bn/- , equivalent to 10 per cent, came from other investmentrelated income, including profits generated from Government investments and other returns arising from government ownership interests.

The composition of these contributions demonstrates the diversity of Tanzania’s public investment portfolio.

While commercial entities remain the largest contributors, non-commercial institutions and other investment sources continue to play an important role in strengthening government revenue.

Mr Mchechu explained that the improved performance has been supported by deliberate reforms aimed at strengthening the management of public institutions.

During the Gawio Day ceremony, President Samia commended public institutions that had improved efficiency, strengthened revenue generation and exercised greater discipline in managing public resources.

She praised boards of directors and chief executives who have demonstrated that public institutions can be managed efficiently, competitively and profitably while continuing to provide services to citizens.

The President also recognised the contribution of companies in which the government holds minority shareholding, noting that their continued payment of dividends and growth in investment value demonstrate the importance of sound corporate governance.

However, she cautioned that the achievement should not lead to complacency.

President Samia emphasised that every institution entrusted with public resources must demonstrate measurable results by showing the value it has created, the contribution it has made to national development and the extent to which it has improved efficiency.

She noted that not all public institutions are expected to provide dividends because their mandates differ.

However, she stressed that no institution should use its mandate as a justification for inefficiency.

Every institution must demonstrate value, accountability and responsible management of public resources.

The President’s message reflects a broader shift in public sector management — from focusing mainly on activities and budgets to measuring outcomes, efficiency and value created.

Looking ahead, the government’s ambition is to further increase the contribution of non-tax revenue to national development.

President Samia has set a target of increasing the contribution of non-tax revenue from approximately three percent of total government revenue to at least ten per cent by 2030.

Achieving this ambition will require every institution, board and management team to translate national objectives into clear performance targets and continue improving productivity.

The story behind Tanzania’s public investment transformation is therefore not only about the increase from 637.7bn/- to 1.327tri/-.

It is about how stronger governance, improved oversight and continuous reforms are unlocking greater value from public assets.

As Tanzania moves towards 2030 and beyond, the challenge will be to sustain this momentum, deepen reforms and ensure that every government investment contributes more effectively to economic growth, fiscal sustainability and national development.

Prof Kitila Mkumbo, Minister of State in the President’s Office (Planning and Investment), said the improvement in return from public investments reflects deliberate reforms aimed at strengthening the overall management and performance of public institutions.

He said the government has focused on building institutions that are more accountable, efficient and capable of creating sustainable value from assets entrusted to them.

Prof Mkumbo asserted that one of the key areas has been strengthening corporate governance, where boards of directors are increasingly expected to provide strategic oversight, while management teams are required to focus on measurable results, operational efficiency and financial sustainability.

According to Prof Mkumbo, effective governance remains critical in ensuring that public institutions operate with clear objectives and deliver value to the nation.

Prof Mkumbo added that the government has also prioritised the use of technology and leadership development to improve institutional performance.

He said these reforms are aligned with President Samia’s broader agenda of strengthening the management of public assets and ensuring that government investments generate greater benefits for citizens.

Prof Mkumbo noted that many public institutions have embraced the President’s R4 philosophy—Reconciliation, Resilience, Reforms and Rebuilding—by improving accountability, strengthening resilience and transforming their operations to achieve better performance.