MWE Correspondent
Tanzania’s government has received a record Sh1.32 trillion (about US$510 million) in dividends and other investment returns from state-owned enterprises and companies in which it holds minority shareholdings, highlighting the growing contribution of public investments to the country’s finances.
The figure, announced on Tuesday, June 30, represents a 30 percent increase from the Sh1.02 trillion collected during the same period last year, reflecting stronger financial performance across government-linked entities.
Treasury Registrar Nehemiah Mchechu disclosed the figures during the annual Dividend Day ceremony held at the State House in Dar es Salaam, where President Samia Suluhu Hassan officiated as the guest of honour.
According to Mchechu, the government had collected the Sh1.32 trillion by Monday, June 29, through dividends and other statutory contributions from public corporations and companies in which the state owns either majority or minority equity stakes.
The sharp increase highlights Tanzania’s broader efforts to improve the governance, profitability and accountability of state-owned enterprises while ensuring that public investments generate stronger financial returns for the national budget.
Over recent years, the government has introduced reforms aimed at improving operational efficiency, strengthening corporate governance and increasing financial discipline across public institutions.
Officials say higher dividend payments provide an important source of non-tax revenue, helping finance national development priorities without increasing the tax burden on citizens and businesses.
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The improved returns also reflect the government’s strategy of treating state investments as commercial assets expected to deliver measurable value while supporting broader economic development.
Economists note that profitable state enterprises can play a significant role in strengthening public finances by reducing dependence on borrowing and creating additional fiscal space for investment in infrastructure, healthcare, education and other essential public services.
The record collections come as Tanzania continues pursuing an ambitious development agenda centred on industrialisation, infrastructure expansion and private sector-led economic growth.
The annual Dividend Day has become an important platform for assessing the financial performance of government-linked institutions and reinforcing expectations that public investments should deliver sustainable returns to taxpayers.
Officials say continued improvements in the performance of state-owned enterprises will remain critical to strengthening fiscal sustainability and supporting Tanzania’s long-term economic transformation.
With dividend collections reaching a historic high, the government views the achievement as evidence that reforms in the management of public investments are beginning to translate into stronger financial returns for the national economy.
