‘Reforms, rebuilding: Secret behind rise in dividends’
DAR ES SALAAM: TREASURY Registrar Nehemiah Mchechu has revealed that the significant increase in dividends and contributions from public institutions to the government is the result of major reforms and rebuilding efforts within those entities.
Mr Mchechu made the statement yesterday during a ceremony where he handed over dividends and contributions from public institutions to President Samia Suluhu Hassan at Magogoni State House in Dar es Salaam.
He announced that the Treasury Registrar’s Office has collected 1.028tri/- this year, marking a 68 per cent increase compared to the same period last year, and a 34 per cent rise from the 767bn/- collected during the 2023/24 financial year.
“This is the first time in the history of the Treasury Registrar’s Office that we have achieved this level of collection,” Mr Mchechu said.
“Under President Samia’s leadership, the office adopted the 4Rs (Reconciliation, Resilience, Reforms, and Rebuilding) philosophy, with a particular focus on Reforms and Rebuilding, which has driven efficiency and productivity across the institutions,” he added.
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According to Mr Mchechu, significant leadership changes have been made in joint-venture companies, where the government holds minority shares, previously dominated by foreign partners. He noted that positions are now being filled by capable and experienced Tanzanians, who are demonstrating high levels of professionalism and performance.
As a result of the ongoing reforms, dividends from several companies have risen dramatically, with NMB increasing from 16bn/- to 64bn/- (a 300 per cent increase), Puma Energy growing from 8bn/- to 12bn/- (50 per cent increase), NBC jumping from 1.3bn/- to 10bn/- (600 per cent increase), and Tanzania International Petroleum Reserves (TIPER) Ltd. increasing from 1.5bn/- to 5.5bn/- (200 per cent increase).
“All this is a result of the government’s stable and investor-friendly business environment, which has boosted confidence among our partners,” Mr Mchechu remarked.
The Treasury Registrar also highlighted key reforms that have strengthened the boards of directors in public institutions. He revealed that the number of public institutions without boards has decreased from 52 in the 2019/20 fiscal year to 28 in 2024, reflecting a 46 per cent improvement.
Furthermore, the number of mining companies in which the government owns shares through the Treasury Registrar has grown from 4 in 2019/20 to 12 currently, marking a 200 per cent increase, with 10 additional contracts under negotiation.
Mr Mchechu also underscored the financial turnaround of several public institutions that had previously been operating at a loss and relying on government subsidies, including STAMICO (Mining Corporation), TANESCO (Tanzania Electric Supply Company), and TPDC (Tanzania Petroleum Development Corporation).
These organisations are now profitable and contributing dividends to the government. He cited the Tanzania Ports Authority (TPA) as an example of improved performance, with contributions increasing from 155.7bn/- in 2023/24 to 181bn/- this year.
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“At the same time, operational expenses have decreased by 505.59bn/-, reflecting a 46 per cent efficiency gain. The authority is now implementing its development projects using internally generated funds,” he noted.
Additionally, leadership development has been prioritised, with 111 Chief Executive Officers of public institutions receiving specialised leadership training since March 2021. Moreover, 125 directors and executives from companies with partial government ownership have participated in forums to exchange insights and strengthen public-private sector collaboration.
Mr Mchechu also noted that to stimulate the economic development of the country, the government has increased its investment in public entities from 65.19tri/- in 2019/20 to 86.29tri/- in 2024/25, a 32 per cent increase.
He reaffirmed that ongoing reforms are not only enhancing efficiency but also strengthening governance and accountability across public institutions. All of this is in line with President Samia’s vision for a reformed and resilient public sector.
“My office will ensure that the number of organisations contributing to the central government fund increases, reliance on government subsidies decreases and organisations operating at a loss exit this group,” he pledged.