TPA leads in govt contribution

DAR ES SALAAM: SOUND reforms across state-owned enterprises (SoEs) have enabled the government to collect significantly higher dividends and contributions this year, with the Tanzania Ports Authority (TPA) emerging as the top contributor.

TPA, which falls under the Treasury’s category of entities required to contribute 15 per cent of their gross income, increased its contribution by nearly 19 per cent to 181.5bn/- in the 2024/2025 financial year, up from 153bn/- the previous year.

The National Identification Authority (NIDA) followed, contributing 38.8bn/-, up from zero last year.

In terms of dividend payouts, Twiga Minerals Corporation led the pack with a 16 per cent increase, paying out 93.6bn/-, up from 53.4bn/-. Airtel Tanzania came second, paying out 73.9bn/-, an increase from 40.8bn/-.

According to the Office of Treasury Registrar (OTR), public entities are divided into two categories: those contributing a fixed 15 per cent of gross income and those operating as commercial ventures that pay dividends.

In the current fiscal year, the number of contributing entities rose to seven from five, and their combined contributions increased to 305bn/-, up from 247bn/- in the previous year.

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Aside from TPA and NIDA, other leading contributors that followed from this category are the     Tanzania Forest Services (TFS) which contributed 29.8bn/- up from 21.3bn, Business Registrations and Licensing Agency (BRELA) that contributed 20.4bn/- up from 18.9bn/- and Tanzania Communications Regulatory Authority (TCRA) with 19.2bn/- down from 34.7bn/-

The list also has Tanzania Shipping Agencies Corporation (TASAC), which contributed 16.3bn/- down from 19.1bn/- and Occupational Safety and Health Authority (OSHA) with 10.4bn/-, having missed the threshold last year.

Presenting the performance report at the State House in Dar es Salaam, Treasury Registrar Mr Nehemia Mchechu attributed TPA’s success to massive infrastructure upgrades and reduced operational costs.

“TPA has cut its operational costs by over half a trillion shillings while simultaneously implementing development projects funded internally,” Mr Mchechu said, adding that the Treasury is committed to supporting such SoEs to strengthen their financial independence.

He said that TPA’s turnaround was inspired by President Samia Suluhu Hassan’s 4Rs philosophy (Reconciliation, Resilience, Reforms, Rebuilding).

President Samia lauded TPA as a model of successful public-private partnership (PPP), particularly at the Dar es Salaam Port, which has received international praise for its efficiency.

“While the private sector focuses on modernising operations, TPA ensures administrative oversight and maintains service quality,” she said.

According to TPA’s latest performance report, infrastructure improvements and strategic partnerships have spurred growth in cargo volume. Total cargo handled rose 11 per cent to 23.9 million tonnes, up from 21.5 million tonnes over the same 11-month period last year.

Investments by DP World and Tanzania East Africa Gateway Terminal Limited (TEAGTL) have also driven growth. General cargo volumes increased from 13.75 million tonnes in 2023/2024 to 15.29 million tonnes in 2024/2025, while container throughput surged 28 per cent, from 904,424 TEUs to 1,159,387 TEUs.

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DP World has already invested 214bn/- and is expected to inject another 100bn/- by June. TEAGTL, meanwhile, has begun implementing a 410bn/- investment plan.

These upgrades have slashed ship turnaround time at the Port of Dar es Salaam from an average of 30 days last year to just 6 days this year.

The second group comprising public entities that paid at least 10bn/- in dividends, grew to six entities this year, collectively contributing 267bn/-, up from 171bn/- by five entities last year.

This group includes: Twiga Minerals that paid 93.6bn/- (up from 53.4bn/-), Airtel Tanzania with– 73.9bn up from 40.8bn/-, NMB Bank 68.1bn/-up from 54.5bn/-, Puma Energy Tanzania – 13.5bn/- up from 12.2bn/-, Tanzania Petroleum Development Corporation (TPDC) with 11.7bn/-(new to the list) and NBC that paid 10.5 bn/- also new entrant among the dividend contributors who surpassed expectations.

Responding to the announcement, Airtel Tanzania Managing Director Charles Kamoto said the company’s performance reflects its commitment to national development through robust public-private partnerships.

“Our dividend contribution is a clear statement of our commitment to Tanzania’s sustainable growth,” Kamoto said. “It showcases how synergy between government policy and private-sector innovation can accelerate inclusive progress and build a digital economy.”