By Business Insider Reporter, Arusha
Tanzania is recording a sharp rise in returns from companies in which the government holds minority stakes, underscoring the impact of ongoing public investment reforms and improved corporate governance.
Finance Minister Khamis Mussa Omar said contributions from such firms to the central government – channelled through the Office of the Treasury Registrar (TR) – have surged from TSh 58.26 billion in 2020 to TSh 266.52 billion in 2024, representing a 357 percent increase over five years.
The figures were presented during the Annual Forum of Board Directors of companies with minority government shareholding, held at the Pan African Postal Union in Arusha.
Reform dividends begin to materialise
The strong growth reflects a broader push by the government to enhance oversight and performance of public investments, particularly under reforms spearheaded by the Treasury Registrar.
“These results demonstrate the importance of strengthening supervision to ensure that public investments generate returns and contribute meaningfully to economic growth,” Omar said.
Companies with minority government stakes currently account for 18 percent of the 308 entities under the Registrar’s oversight. The total value of government investments in these firms reached TSh 3.6 trillion by the 2024/25 financial year, of which TSh 1.94 trillion is invested domestically.
The rising contribution from these firms has also played a role in boosting non-tax revenue, an increasingly important pillar of Tanzania’s fiscal strategy as the government seeks to reduce reliance on borrowing.
Public-private linkages gain traction
The forum highlighted the growing importance of minority shareholding as a policy tool to deepen collaboration between the public and private sectors.
According to the Treasury Registrar, Nehemiah Mchechu, the platform provides an opportunity for directors to exchange expertise in areas such as innovation under economic pressure, competitive intelligence and institutional resilience.
“This forum is critical in strengthening cooperation between government and private sector actors managing these investments,” Mchechu said.
The model allows the government to retain strategic influence in key sectors while leveraging private sector efficiency, capital and managerial expertise – an approach increasingly adopted across emerging markets.
Governance reforms underpin performance
The improved financial performance is closely linked to governance reforms implemented across public institutions in recent years. These reforms have focused on strengthening accountability, transparency and performance monitoring.
According to Omar, the results are now evident in the record growth of non-tax revenues in the 2024/25 fiscal year, driven in part by better-performing state-linked enterprises.
Strategic partners have also played a role in supporting these initiatives. NMB Bank was recognised as the main sponsor of the forum, reflecting growing private sector engagement in public sector reform initiatives.
Dira 2050 sets long-term direction
Looking ahead, the government is aligning its investment strategy with the country’s long-term development blueprint, Tanzania Development Vision 2050 (Dira 2050).
Omar said the vision provides a roadmap for economic transformation over the next 25 years, requiring closer coordination between public and private stakeholders.
“Achieving national development priorities will require both sectors to think, act and move forward together,” he said.
Outlook
The rising returns from minority state investments signal a shift in Tanzania’s approach to managing public assets – from passive ownership to active, performance-driven investment management. If sustained, this trend could enhance fiscal space, improve capital efficiency and position state-linked investments as a key driver of long-term economic growth.
