ARUSHA: Tanzania has urged directors of companies in which it holds minority stakes to deliver stronger financial returns and clearer economic benefits, as the government seeks to maximise the value of public investments.
Closing a three-day forum in Arusha on Wednesday, Deputy Minister in the President’s Office for Planning and Investment, Pius Chaya, said firms with state shareholding must adopt a results-driven approach and contribute more directly to national development.
“Government investments are not merely shares in companies; they are shares in the future of our nation,” he said, calling on directors to ensure companies become “engines of growth, innovation and prosperity”.
He warned against underperformance, saying public investments must generate measurable returns as Tanzania pursues long-term economic goals under its Vision 2050 agenda.
Chaya also urged company boards to safeguard the value of state equity, including preventing dilution of government shareholding and strengthening its strategic position in firms.
The forum brought together more than 200 directors, executives and policymakers to address governance challenges and improve performance in companies where the government holds minority interests.
Treasury Registrar Nehemiah Mchechu said the Office of the Treasury Registrar (OTR) was focused on strengthening governance, accountability and efficiency in such firms to ensure sustainable returns.
Minority-interest companies account for about 18% of the 308 entities under the OTR, with government investments valued at around 3.6 trillion Tanzanian shillings ($1.4 billion), including 1.94 trillion shillings in domestic investments in the 2024/25 financial year.
Finance Minister Khamis Mussa Omar said dividend remittances to the government had risen sharply, from 58.26 billion shillings in 2020 to 266.52 billion shillings in 2024.
The government aims to increase the contribution of non-tax revenue to the national budget from about 3% to 10% within five years, equivalent to roughly 5 trillion shillings annually, he said.
Officials said improving governance, transparency and alignment with national priorities would be key to achieving that target.
Permanent Secretary for Investment Fred Msemwa said the government would continue reforms to improve the business environment, stressing the private sector’s central role in delivering Tanzania’s long-term development strategy.
The forum, now in its third year, focused on strengthening leadership and accountability in companies operating under increasing economic and technological pressures.