The government has warned that underperforming public entities in Tanzania may be merged or dissolved if they fail to improve operations and dividend contribution. Reforms aim to increase dividend collection from TZS 1.028 trillion in 2024/25 to TZS 1.7 trillion in 2025/26, with a TZS 2 trillion internal target.
The warning was issued on December 5, 2025, in Dar es Salaam by the Minister of State in the President’s Office – Planning and Investment, Prof Kitila Mkumbo, during his visit to the Office of the Treasury Registrar (OTR). OTR oversees the government’s shareholding in public institutions and companies.
The Minister said some public enterprises continue to deliver low returns despite the government’s investments in them and will therefore be given a set timeframe to enhance performance. Prof Mkumbo stated that only public institutions capable of generating dividends for the government would be maintained. He was accompanied by Deputy Minister for Planning and Investment, Dr Pius Chaya, and the ministry’s Permanent Secretary, Dr Tausi Kida. According to OTR, the government currently holds shares in 308 institutions and companies. Of these, 91 are commercially active, while 217 operate as non-commercial entities. The Minister said the government expects citizens to benefit from its investment in public enterprises amounting to TZS 92.3 trillion.
Read more at: https://www.tanzaniainvest.com/economy/otr-underperforming-public-entities-risk-merger-or-dissolution
