Dar es Salaam. On June 10, 2025, at the State House in Dar es Salaam, Treasury Registrar Mr Nehemiah Mchechu handed over a TZS 1.028 trillion cheque in dividends and contributions from public entities and minority government-owned companies to President Samia Suluhu Hassan of Tanzania.

This year’s theme, “Public Organizations Transformation and the Responsibility to Contribute to the Development of Tanzania,” carried deep economic, policy, and social meaning. It reinforced the idea that the Government is not merely a service provider but a major investor in the national economy.

“Every shilling invested by the Government is a seed of development. Those of us entrusted with managing these resources have a responsibility to ensure that this seed germinates, blooms, and bears visible fruits for our citizens. One of those fruits is the dividend we are receiving today,” stated Mr Mchechu.

A challenge accepted and delivered

Last year, during the inaugural Dividend Day on 11th June 2024, the Office of the Treasury Registrar (OTR) handed over TZS 611 billion to the President.

 At the time, Her Excellency issued a clear directive: the dividends must grow significantly in the following year.

Mr Mchechu took this as both a challenge and a duty, committing to deliver results.

True to his word, Mr Mchechu proudly reported that, as of 9th June 2025, the Office had collected TZS 1.028 trillion, representing a 68 percent increase from the same period previous year, and a 34 percent rise from the total collections of the entire 2023/24 financial year, which stood at TZS 767 billion.

These funds were collected from 213 institutions and organizations, including 195 publics entities and 18 minority interest companies — a substantial increase from the 145 entities that contributed the previous year.

The collections included TZS 603.4 billion from commercial entities, TZS 363.4 billion from the 15 percent gross revenue contributions, and TZS 61 billion from other revenues.

This strong performance reflects the ongoing operational reforms driven by President Samia’s leadership.

Gawio Day: A Platform for Accountability and Celebration

More than just a ceremonial handover, Dividend Day — also referred to as Gawio Day — has become a platform for reflection, evaluation, and celebration.

 It highlights the importance of public investment and holds institutions accountable for delivering value to citizens.

This year’s celebration echoed the President’s 4Rs philosophy, with particular emphasis on Reforms and Rebuilding.

Tangible evidence of transformation under President Samia’s administration is everywhere.

 Dividends and contributions have grown impressively from TZS 637 billion in 2020/21 to TZS 1.028 trillion in 2024/25 — a 61 percent increase, marking the highest collection ever recorded by the OTR

Another milestone this year was the participation of a State-Owned Enterprise (SOE) among the top contributors — a direct result of the President’s 2024 directive urging SOEs to compete with high-performing minority-shareholding companies.

 For the first time, an SOE handed over a cheque exceeding TZS 10 billion, earning loud applause from those in attendance.

Leadership Reforms Bearing Fruit

Institutional leadership has also seen a shift. Senior management roles in several minority-shareholding companies, traditionally held by foreign nationals, have increasingly been assumed by Tanzanian professionals.

These transitions have brought tangible results. For example, NMB Bank has seen its dividend payout increase by 325 percent over the past four years, rising from TZS 16 billion to TZS 68 billion.

Similarly, Puma Energy Tanzania increased from TZS 8 billion to TZS 13 billion, NBC Bank surged from TZS 1.3 billion to TZS 10 billion, and TIPER climbed from TZS 1.5 billion to TZS 5.5 billion.

These increases are not coincidental; they are a testament to a supportive investment climate and improved collaboration between government and private partners.

 

Strengthening Governance and Expanding Investment

Governance structures have also improved significantly. In 2019/20, 52 public entities were operating without boards of directors.

Today, that number has dropped to 28, representing a 46 percent improvement in institutional oversight.

In addition, the Government’s stake in mining companies has expanded. In 2019/20, it held shares in only four companies.

As of this year, that number has grown to twelve, and preparations are underway to sign ten more new contracts — marking a 200 percent increase in just five years.

Perhaps most impressively, several SOEs that were once unprofitable and reliant on government subsidies have now turned around. Organizations such as State Mining Corporation (STAMICO), TANESCO, and TPDC have not only become financially stable but are now contributing dividends — a remarkable turnaround driven by focused reforms and efficient leadership.

This transformation is also evident at the Tanzania Ports Authority, where contributions rose from TZS 155.7 billion in 2023/24 to TZS 181 billion in 2024/25. Even more impressively, administrative expenses for port operations decreased by TZS 505.59 billion year-on-year, representing an efficiency gain of 46 percent.

Social Impact and Public Value

Not all institutions are mandated to produce financial dividends, but many continue to deliver value through social impact. One standout example is the Jakaya Kikwete Cardiac Institute.

Through its “Tiba Mkoba” initiative, championed by Dr. Samia, the Institute reached over 27,600 people across 16 regions with free heart disease screening and treatment.

 If these patients had come to the hospital individually, the services would have cost more than TZS 1.6 billion — an amount now saved for citizens through a targeted public health campaign.

Public Investment on the Rise

The Government’s confidence in SOEs is also evident in its growing investment. From TZS 65.19 trillion in 2019/20, investment in public institutions has risen to TZS 86.29 trillion in 2024/25 — a 32 percent increase.

 This not only shows the administration’s commitment to empowering SOEs but also underscores their crucial role in Tanzania’s economic development.

The Road Ahead

Despite these achievements, much work remains. The Office of the Treasury Registrar is tasked with ensuring that these investments are used effectively, that the number of contributing entities continues to grow, and that the reliance on government subsidies is reduced.

Loss-making entities must continue on the path of reform and become financially sustainable contributors to the national treasury.

As the event came to a close, Mr. Mchechu reaffirmed his commitment to national service.

“Your Excellency, I promise that we will continue to carry out our responsibilities professionally while protecting public investment with great zeal.

 In addition, I would like to express my sincere gratitude for your strong leadership and for encouraging us to work with diligence, knowledge, and integrity. Your guidance on ensuring that public investment delivers real results has been our compass throughout.”

The crowd responded with thunderous applause — a fitting end to a day that reminded the nation not only of what has been achieved, but of what is still possible.