Pwani. The government is seeking to increase the return on investment from companies in which it holds minority shares from the current seven percent to over 10 percent in the next financial year.
This initiative was announced on Friday, March 28, 2025, by Chief Secretary Hon. Ambassador Dr. Moses Kusiluka in Kibaha, Pwani Region, during the closing session of a three-day Minority Interests (MIs) Forum for directors of boards of these companies.
“I challenge you to boost the return on investment from the current seven to over 10 percent annually. To achieve this goal, you must enhance operational efficiency,” he stated.
The Office of the Treasury Registrar (OTR) oversees a total of 308 institutions, of which 56 are companies where the government holds minority shares.
A total investment of Sh86.3 trillion has been made in these institutions, of which Sh2.9 trillion has been invested in companies with minority government shares, while Sh83.4 trillion has gone to institutions where the government holds 100 percent ownership.
Additionally, Ambassador Kusiluka challenged the directors of the companies with minority shares to improve the dividends to the government.
“I believe that in the next financial year, we will see dividends from the institutions you manage increase. This is the challenge I leave with you,” he said during the meeting organized by the Office of the Treasury Registrar.
In the previous financial year, the government received dividends totaling Sh195 billion from its companies with minority shares, according to statistics from the OTR.
“Our success will reflect the government’s efforts under President Dr. Samia Suluhu Hassan to create a friendly and enabling business environment,” he stated.
The OTR manages a total of 308 institutions, of which 56 are companies where the government holds minority shares.
Dr. Kusiluka expressed confidence that the newly improved guidelines for directors of boards of companies with minority government shares, launched on Wednesday this week, would enhance efficiency and ultimately contribute more to the Government’s Consolidated Fund.
“I have reviewed the guidelines and found them to be filled with valuable instructions that will help board directors carry out their duties professionally and on time,” he noted, praising the OTR for developing this guide.
In this context, he urged the board directors to fully utilize the guide to enhance their effectiveness in their respective areas.
Meanwhile, Treasury Registrar Mr. Nehemiah Mchechu urged government representatives on the boards of companies with minority shares to proudly represent Tanzania.
He encouraged these representatives, who serve as board directors, to honor their positions to ensure that the government benefits from its investments in these companies.
A total investment of Sh86.3 trillion has been made in the institutions overseen by the OTR, of which Sh2.9 trillion has been invested in companies with minority government shares, while 83.4 trillion shillings has gone to institutions where the government holds 100 percent ownership.
“You are the government’s eyes, so you should not take your positions lightly; otherwise, you will not be serving the government and all Tanzanians properly,” Mr. Mchechu warned the directors.
He added, “You must be dedicated, and if you feel you cannot fulfill this role due to time constraints, it is better to step aside for someone else to take your place.”
The theme of the meeting, “Leveraging Technology for Enhanced Performance,” underscored the importance of integrating technological solutions to improve operational efficiency and drive growth within the companies where the government holds minority shares.
