More institutions cross 10bn/- dividend, what it means for public finances

A WAVE of strong financial performances among key institutions in Tanzania has led to a sharp rise in dividend remittances to the government and shareholders during the 2024/25 financial year, as recorded by June 9, 2025.

A total of six institutions each remitted over 10bn/- in dividends, up from five last year, with the combined value of contributions surging to 267bn/-.

This is an impressive 56 per cent increase from the 171bn/- garnered during the same period in 2023/24.

These dividends come from institutions obligated by law, either under the Public Corporations Act or the Companies Act to remit earnings to their shareholders, including the government where applicable.

The sharp rise in both the number of institutions and the total remitted amount underscores a broader trend of improved governance, operational efficiency and profitability across strategic sectors.

Speaking recently during Dividend Day (Gawio Day), President Samia Suluhu Hassan commended the institutions for their improved performance, describing the results as a clear demonstration of the gains being realised from her administration’s reforms in economic governance and accountability.

“This level of compliance and commitment to remit dividends is not just a financial achievement, it reflects the growing maturity and integrity of our institutions,” she said.

“We are witnessing the results of deliberate efforts to instil transparency, productivity and responsibility in both public and private sector entities.”

The Head of State emphasised that the increased remittances will go a long way in supporting the government’s development agenda, especially in funding essential services without relying solely on borrowing or increased taxation.

“Some 267bn/- is not a small amount. It allows us to strengthen our budget for health, education, water and rural electrification-touching the lives of ordinary Tanzanians,” she noted.

“These contributions reduce fiscal pressure and increase our ability to plan sustainably.”

President Samia also singled out the Tanzania Petroleum Development Corporation (TPDC), the only fully public institution on the list, for making its debut among top dividend contributors.

“TPDC’s entry into this high-performing group shows that government institutions, when empowered and managed professionally, can be commercially successful and nationally impactful,” she remarked.

“It is encouraging to see that state-owned enterprises are no longer viewed as a burden, but as strong contributors to our economic goals.”

Reflecting on the presence of five minority interest companies on the list including Twiga Minerals, Airtel Tanzania, NMB Bank, Puma Energy and NBC President Samia highlighted the importance of strategic government investments in the private sector.

“Our minority stakes in these companies continue to yield real, measurable returns. This validates our approach of ensuring the state remains an active, yet facilitative, partner in business,” she said.

The Minister responsible for Planning and Investment, Prof Kitila Mkumbo, lauded the achievements as a reflection of sound economic stewardship and growing investor confidence.

“This performance shows that the investment environment we have nurtured over the past few years is working. Profitability is up, compliance is up and public-private cooperation is delivering results,” Prof Mkumbo said.

“These dividend contributions are not just about numbers they are evidence of growing productivity, better corporate governance and a stable policy environment.”

Prof Mkumbo emphasised that the government would continue creating room for commercial success through investmentfriendly policies, especially in sectors where the state retains a stake.

“We will continue to promote reforms that ensure all institutions, public or private, contribute meaningfully to our economy,” he added.

“The future is about partnerships, where the government enables and businesses thrive.”

Adding to this recognition, the Treasury Registrar, Mr Nehemiah Mchechu, praised the institutions for heeding the President’s directive.

“Last year during Gawio Day, the President challenged public commercial entities to step up and match the performance of companies where the government holds minority shares. This year, we saw that instruction come to life,” said Mr Mchechu.

Adding, “For the first time, one of our own and that is TPDC stood shoulder to shoulder with top-performing firms and presented a cheque of over 10bn/-. “It’s a proud moment for the government and a sign that our public corporations are rising to the occasion.”

Mr Mchechu also underscored the broader transformation under the sixth-phase administration, noting a historic leap in dividend and contribution collections.

“Under President Samia’s leadership, collections by the Treasury Registrar’s Office have grown from 637bn/- in 2020/21 to over 1.028tr/- in 2024/25 a 61 per cent increase,” he said.

This is the first time in the history of the Office to reach that level of revenue collections.

Mr Mchechu further explained that the 1.028tr/- collected this year comprises three major streams: dividends from public and partially government-owned business entities, which contributed 603.4 bn/- about 59 per cent of the total.

Others are; a 15 per cent remittance from gross revenue amounting to 363.4bn/-, making up 35 per cent; and other revenue sources contributing 61bn/-, or six per cent of the total collection.

“These figures not only reflect improved institutional discipline but also a growing understanding of the strategic role of state investments,” concluded Mr Mchechu