TREASURY REGISTRAR’S CORNER. From cheques to change: How Tanzania’s 1tri/- dividend signals deeper transformation

DAR ES SALAAM: WHEN Treasury Registrar Mr Nehemiah Mchechu, a reform-driven leader known for his operational discipline and commitment to public accountability, presented a 1.028tri/ cheque to President Samia Suluhu Hassan on June 10, it wasn’t just a fiscal formality, it was a signal.

A signal that Tanzania is recalibrating the role of government from a passive stakeholder to an active, value-driven investor.

What’s happening beneath the surface of this headline-making number is far more significant: a quiet revolution in how public money is managed, how state-owned entities are governed and how the country measures public value, not just in shillings, but in systems, services and social return.

Beyond the Cheque: Reimagining public investment

For decades, the assumption was that State Owned Enterprises (SOEs) were either inefficient service providers or politically protected money pits.

That narrative is shifting. In 2020/21, public entities returned 637 bn/- to the Treasury. Today, they’re returning over a trillion. The question isn’t just how that happened, but why now?

According to government insiders and economic analysts, the answer lies in a new investment philosophy: government capital should work like private capital, disciplined, transparent and performance-driven.

President Dr Samia Suluhu Hassan, a reformist head of state with a datadriven, policy-oriented approach to governance, has made this a cornerstone of her administration’s development strategy.

Her emphasis on measurable results, digital transformation, innovation and capital market integration has challenged public institutions to become financially sustainable and self-reliant. Under her bold vision and the guiding framework of the 4Rs Reconciliation, Reforms, Resilience and Rebuilding, institutions are now expected to deliver measurable outcomes.

The Gawio Day event, now institutionalised, isn’t just about recognition, it’s about accountability. And that’s changing behaviour.

“Public organisations are finally behaving like strategic assets, not just service arms,” notes an economist at the University of Mzumbe, Dr Daudi Ndaki.

Adding: “There’s a real sense that if you don’t perform, someone will ask why and you’ll have to answer.”

More than profits: Measuring public value

What does a dividend mean to a mother in Kigoma or a farmer in Morogoro? Not much, unless it translates into services.

That’s where institutions like the Jakaya Kikwete Cardiac Institute come in. Their Tiba Mkoba initiative reached over 27,600 Tanzanians in underserved regions, services worth over 1.6 billion/-, delivered free of charge.

This is the next frontier: recognising that public returns aren’t just financial. Social dividends, improved healthcare, infrastructure and public trust are just as critical. “When we say SOEs must contribute, it doesn’t always mean cash,” said Mr Mchechu at the event.

“Sometimes, contribution means impact, measured in lives touched, services improved, or gaps closed.”

Rebuilding governance one board at a time

Another overlooked aspect of this shift is governance. In 2019/20, 52 public institutions operated without boards, today, there are 28. That’s not just a technical fix.

It represents a mindset change: institutions must have oversight, not just operational heads. With more boards comes more scrutiny and that scrutiny is now translating into performance.

Prof Kitila Mkumbo, Minister for Planning and Investment and one of the President’s key policy lieutenants, has been instrumental in pushing structural reforms.

Known for his technocratic rigour and emphasis on legal frameworks, he is overseeing the finalisation of the Public Investment Law, which aims to formalise how government investments are governed, tracked and evaluated. His ministry has also committed to enhancing performance tracking and ensuring that investment is paired with enforceable accountability tools, not just policy announcements.

The stakes are higher than ever

As investment in public institutions climbed from 65 tri/- to 86 tri/- in just five years, the pressure to perform also rises. Loss-making institutions have less room for excuses.

Subsidies are becoming less defensible. In other words, the dividend isn’t just a payout. It’s a performance review. And the real challenge begins now: can Tanzania keep this momentum? Can SOEs maintain discipline?

Can public entities deliver both profit and purpose?

The dividend is a mirror

The 1 tri/- cheque is impressive, but it’s not the story. It’s a mirror, reflecting what’s changed and what still needs work.

It tells that reform isn’t just a slogan. That leadership, when combined with clear expectations, can drive real transformation. And that when public institutions are treated as accountable entities, not extensions of bureaucracy, they can compete, contribute and surprise us all. If the past year was about proving what’s possible, the next year must answer a harder question: Can this become the new normal?