Africa-Press – Tanzania. THE Tanzanian government has stepped in to address concerns raised by shareholders of Vodacom Tanzania, who for over eight years have not received expected dividends, while the value of their shares continues to plummet on the Dar es Salaam Stock Exchange (DSE).
The Minister for Information, Communication and Information Technology, Mr Jerry Silaa, made the announcement in Parliament on Friday while responding to concerns raised by MPs during debate on the 2025/26 Budget Estimates for his ministry.
More than 10 legislators passionately questioned the government on why citizens were encouraged to invest in Vodacom shares at a price of 850/- per share, with promises that the value would surge to 4,000/- within six months. However, the shares are now trading at between 720/- and as low as 245/- and have become nearly unsellable due to a lack of buyers.
Minister Silaa admitted awareness of the matter and assured Parliament that the government is taking the issue seriously.
He said he will convene with the Minister for Finance and the Attorney General to chart out a sustainable solution that protects Tanzanians who invested in the telecom firm.
“The intention of the Communications Act was noble – to ensure Tanzanians own a stake in the telecoms sector and its economy,” he said. “Unfortunately, what has transpired is contrary to those expectations. The intention was good, but we must now revisit the matter.”
Geita Urban MP, Mr Constantine Kanyasu (CCM), informed the House that he too was among those affected, revealing he had purchased Vodacom shares but has never received any dividends, and his shares remain illiquid.
Singida West MP, Mr Elibariki Kingu (CCM), said the reality has been disheartening for investors. “After eight years, one gets a dividend of just 245/-, equivalent to 35/- a year. That is unacceptable,” he stressed.
Mr Kingu explained that the Communications Act of 2010, amended in 2022, required all telecom companies to register on the DSE and offload 25 per cent of their shares to Tanzanians. Vodacom was the first to comply and launched a vigorous campaign urging citizens to buy shares – a campaign that saw wide participation from ordinary citizens, businesspeople, and government officials.
Makete MP, Mr Festo Sanga (CCM), called on Minister Silaa to issue an official government statement on the way forward, citing cases from his constituency where people invested between 100m/- to 300m/- in the shares.
“The intention was good – to give Tanzanians a stake in the economy. But the result has been grief, not capital growth,” Mr Sanga lamented.
Singida East MP, Mr Miraji Mtaturu (CCM), echoed similar sentiments, urging the government to clarify how shareholders would be compensated or helped to recover their investments. “If laws must be changed, then let them be changed. But what matters is that those who invested must see their money,” he stated.
Special Seats MP, Ms Mwanaisha Ulenge (CCM), also emphasised the need for government clarity on how investors would be reimbursed or supported, proposing legislative reforms to better protect domestic investors in the future.
Nyamagana MP, Mr Stanslaus Mabula (CCM), recalled how citizens were mobilised door-to-door to buy shares, with some taking bank loans to invest, only to face massive losses—some even losing their homes.
In response, Minister Silaa promised a comprehensive review of the Electronic and Postal Communications Act (EPOCA), which initially required telecom operators to sell 25 per cent of their shares to Tanzanians through the DSE as part of an inclusive economic empowerment initiative.
He assured the House that the government is committed to ensuring that citizens are not left disadvantaged and that the original goal of economic inclusion is restored.
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