THE government aims 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 plan was unveiled by Chief Secretary Ambassador Dr. Moses Kusiluka over the weekend in Kibaha, Coast Region, during the closing session of a three-day Minority Interests (MIs) Forum for directors of companies with minority government stakes.

"I challenge you to raise the return on investment from the current seven percent to over 10 percent annually. To achieve this goal, enhancing operational efficiency is key," Kusiluka said.

The Office of the Treasury Registrar (OTR) manages a total of 308 institutions, 56 of which are companies where the government holds minority shares.

The total investment in these institutions stands at 86.3 trillion shillings, with 2.9 trillion shillings invested in companies where the government holds minority shares, while 83.4 trillion shillings is invested in institutions where the government has full ownership.

Ambassador Kusiluka called on directors of these minority shareholding companies to improve dividends to the government.

"I am confident that in the next financial year, we will see an increase in dividends from the institutions you manage. 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 a total of 195 billion shillings in dividends from companies with minority shares, according to OTR statistics.

"Our success will be a reflection of the government’s efforts under President Dr. Samia Suluhu Hassan to create a business-friendly and enabling environment," he added.

Dr. Kusiluka expressed confidence that the newly improved guidelines for board directors of companies with minority government shares, launched earlier 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 promptly," he said.

He urged the directors to fully utilize the guidelines to improve their effectiveness in their respective areas.

Treasury Registrar Nehemiah Mchechu emphasized the importance of government representatives on the boards of companies with minority shares in proudly representing Tanzania.

He encouraged these representatives to honor their positions to ensure that the government benefits from its investments in these companies.

With a total investment of 86.3 trillion shillings overseen by the OTR, 2.9 trillion shillings is invested in companies with minority government shares, while 83.4 trillion shillings is in government-owned institutions.

"You are the government’s eyes, and you should not take your positions lightly. If you feel you cannot fulfill this role due to time constraints, it is better to step aside for someone else," Mchechu warned the directors.