Joseph Isangura
President Samia Suluhu Hassan made it clear that public enterprises in Tanzania must begin to carry their own weight — or risk being sidelined.
Speaking during a dividend and contribution handover ceremony at the State House in Dar es Salaam, the President emphasized that state-owned companies can no longer survive on government support without giving back tangible returns.
“Let me stress this — the days of public institutions reaping benefits from the Government without giving back are long gone,” she said. “I expect these enterprises to sustain themselves and support the Government.”
This year, the Tanzanian government has collected a record TZS 1.028 trillion (around USD 400 million) in dividends and contributions from public enterprises, an unprecedented figure in the country’s financial history. According to the Treasury Registrar, 213 entities contributed — including 195 state-owned institutions and 18 companies where the government holds minority shares.
The President underlined the significance of these contributions in shaping national development. She described public institutions as “guardians” of state investment and challenged them to prove their value by operating efficiently and generating profit.
“If we fail to safeguard our investment infrastructure, we shall miss out on the returns,” she added.
President Samia is driving a shift in public sector culture — pushing institutions not only to improve governance and transparency, but also to seek alternative financing models through tools like the capital market.
Recalling a case from two years ago, she shared how Tanzania’s request for a loan from the World Bank to develop port infrastructure was initially met with hesitation due to doubts over the country’s financial readiness. However, after the government demonstrated progress, lenders returned — eager to work with a more stable and accountable system.
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“When they saw our improvements, they came back to us offering to lend,” she noted.
Now, the President is encouraging public institutions to do the same — to take initiative, raise their own capital, and prove their creditworthiness before relying on external funding or government subsidies.
“If you have funds to begin development, take the initiative yourselves. If you encounter obstacles, then we will know how best to assist.”
Her message aligns with the government’s broader goal of reducing national debt by enhancing the productivity of state-owned enterprises. Institutions were also urged to make use of stock exchanges and corporate bonds to attract public investment and generate returns for both themselves and citizens.
Out of all the expected contributors, 57 entities have yet to submit their dividends — a gap that the government is working to close in the coming weeks.
This approach marks a decisive shift from the old model where government bailouts were routine. Instead, there’s now a push toward self-reliance, performance-based accountability, and a closer partnership between the public and private sectors.
