Africa-Press – Tanzania. PRESIDENT Samia Suluhu Hassan today receive what could be a record-breaking dividend payout along with significant financial contributions from public institutions and companies where the government holds minority shares.
The event, pending final collection and official confirmation, marks a milestone in non-tax revenue mobilisation for the 2024/2025 fiscal year.
The anticipated boost reflects improved operational efficiencies, strengthened governance and ongoing reforms within governmentaffiliated entities.
Economic analysts are closely monitoring the development, seeing it as a critical indicator of the government’s growing fiscal strength and capacity to leverage public investments to support national development. Dividend payouts and other non-tax revenues are increasingly serving as vital supplementary income streams for the government, helping diversify its revenue base beyond traditional taxation.
Treasury Registrar Mr Nehemiah Mchechu, speaking on Monday, expressed confidence that dividend collections for the 2024/25 fiscal year would surpass all historical records.
His optimism is buoyed by notable improvements in corporate governance, profitability and operational efficiency within public entities. In the 2023/24 fiscal year, non-tax revenues, including dividends, mandatory 15 per cent contributions from gross revenue and other levies amounted to 767.1bn/-.
Early figures for the current fiscal year indicate strong momentum, with collections nearing 900bn/- by June 2. Experts project the total could hit 1tri/- by year-end, an unprecedented milestone that reflects financial resilience despite global economic headwinds.
An economist at the University of Dar es Salaam, Professor Abel Kinyondo, attributed the growth to enhanced operational frameworks and the absence of major economic shocks. He noted that the trend signifies the increasing financial viability of government investments in commercial ventures.
While rising dividend income is a positive sign, experts stress the strategic deployment of these funds. Prof Kinyondo cautioned that without focused investment in impactful sectors, such as infrastructure, education and industrialisation, the potential multiplier effect of the funds could be diluted.
Dr Daudi Ndaki of Mzumbe University echoed these sentiments, calling for reinvestment strategies that sustain and expand the capital base. He said that recent governance reforms, including board revitalisation and performancebased management are essential to unlocking long-term financial gains and expanding fiscal space.
Dr Lutengano Mwinuka from the University of Dodoma added that robust policy frameworks are needed to ensure dividend proceeds are directed toward Tanzania’s long-term development goals, including human capital development and economic diversification.
Experts consistently underline institutional efficiency as a key factor in driving higher returns. Business expert and economist Dr Donath Olomi stressed the need for rigorous efficiency measures to maximise profitability and, in turn, dividends.
He noted that the government’s investment portfolio valued at 86.3tri/- across 308 institutions must be closely monitored to ensure investments yield appropriate financial returns.
This requires proactive management and performance tracking. In addition to dividends, public institutions are legally required to remit 15 per cent of their gross revenue annually to the Treasury Fund, as outlined in the Public Finance Act.
Institutions generating surpluses beyond certain thresholds must also remit 70 per cent of the excess to the government. These legal provisions ensure a steady revenue stream but also demand robust compliance mechanisms and financial discipline.
Today’s event, during which President Samia will honour 14 top-performing institutions, reflects the government’s strategic move to incentivise performance and transparency.
Award categories include: Highest dividend payers, institutions meeting the 15 per cent gross revenue requirement, entities with significant increases in contributions, consistent contributors over five consecutive years (2020/21–2024/25), organisations that turned around from loss-making to profitability and institutions making exceptional or unique contributions to the Consolidated Fund.
This recognition aims to foster a competitive, reformdriven culture within public institutions and further enhance fiscal performance.
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