Africa-Press – Tanzania. THE government has issued a tough warning to underperforming public institutions, cautioning that those failing to improve swiftly may be merged or dissolved.
Speaking to reporters after a working session with the Office of the Treasury Registrar (OTR) management, Minister of State in the President’s Office – Planning and Investment, Prof Kitila Mkumbo said it is unacceptable that some public enterprises continue to underdeliver dividends despite the significant investments made by the government.
He added that targeted institutions would be given a clear timeframe to improve before the government decides whether to merge or dissolve them where necessary.
“It is better to have a few commercial entities that generate meaningful dividends for the government,” Prof Mkumbo said.
He was joined by Deputy Minister for Planning and Investment, Dr Pius Chaya and the ministry’s Permanent Secretary, Dr Tausi Kida.
According to OTR, the government holds shares in 308 institutions and companies, but only 91 are commercially active, while 217 remain non-commercial.
Prof Mkumbo said the government expects Tanzanians to benefit from its 92.3tri/- investment in public enterprises.
In the 2024/25 financial year, OTR collected 1.028tri/- in dividends from public institutions and minorityowned companies, the highest amount ever recorded since the office was established in 1959.
However, the government believes there is still significant room for improvement.
Prof Mkumbo said a target has been set for OTR to collect 1.7tri/- in the 2025/26 financial year, while OTR has internally committed to aiming as high as 2tri/-, driven by ongoing reforms in public enterprises. He emphasised that efficiency will be further strengthened through transparent and competitive appointments of executives and board members in public entities.
“My task is to ensure we establish a robust Public Investment Act that will drive efficiency in public enterprises,” he said.
He expressed confidence that amendments to the bill would be completed swiftly, paving the way for its second reading in Parliament in the near future. He added that the government’s broader goal is to transform the performance, outlook and service delivery of public enterprises, enabling them to provide quality services and attract investment.
For his part, the Treasury Registrar, Mr Nehemiah Mchechu, said OTR is committed to strengthening public enterprises to enhance efficiency in service delivery and investment.
