THE government is targeting 1.5trn/- non-tax revenue for the next financial year, and President Samia Suluhu Hassan believes it is achievable.

Addressing senior government officials at a dividend handover ceremony at the State House in Dar es Salaam yesterday under the theme “transformation of public institutions and their role in national development,” the president directed Treasury Registrar Nehemiah Mchechu to set out to achieve this target, obtaining 0.5trn/- more than in fiscal 2024/25.

The registrar needs to carry out a comprehensive review of public enterprises and assign specific revenue targets, “aligned with a broader shift toward results-based management,” she said.

Public enterprises need to move beyond traditional funding models and adopt modern approaches, including technology adoption, transparency and accessing capital markets, she stated.

“Public enterprises must solve their own problems. Relying on bailouts is no longer sustainable,” she said, noting that to strengthen those institutions, “they must prioritize technological adoption and innovative practices.”

She also directed the minister responsible for investment to finalize the public investment law, demanding that those enterprises must modernize ICT infrastructure to enhance data systems and IT frameworks which are essential for efficiency and transparency.

“Institutional reform cannot succeed without empowered and motivated people,” she asserted, explaining that embracing innovation and exploring capital markets will reduce reliance on public subsidies and drive national economic growth.

Dividend payments are not simply legal requirements but reflect improved performance and institutional maturity, she said, underlining that the government has invested 86trn/- in public enterprises to empower them to operate independently.

The 1.1trn/- dividends projected by the end of this month represents a 68 percent increase compared to the same period last year and constitutes 34 percent of total non-tax revenue for fiscal 23023/24, she said. She praised public firms that have embraced reforms as such measures have rescued many from financial collapse, appealing for greater efforts toward self-reliance.

The registrar said that the 1.028trn/- already earned came from 213 institutions, including 195 public entities and 18 firms where the government has minority shares, with 57 enterprises yet to submit their contributions.

About 59 percent of total earnings was collected from profit-making entities as dividends, 35 percent from 15 percent gross revenue contributions, and six percent from loan repayments, interest and telecom monitoring fees, he stated.

He acknowledged persistent challenges particularly in revitalizing loss-making entities and reducing subsidy dependence. Prof. Kitila Mkumbo, the Planning and Investment minister, said robust strategies for evaluation and oversight will be implemented during fiscal 2025/26, by institutionalizing performance assessments as feedback mechanism for sustained reform.

To encourage performance, 14 institutions were recognized for their outstanding contributions, where top dividend payers were Twiga Minerals Corporation at 93.6bn/- Airtel (T) 73.9bn/- and NMB Bank Plc at 68.2bn/-

Top 15percent gross revenue contributors were Tanzania Ports Authority (TPA) at 181.1bn/-, the National Identification Authority (NIDA) 38.8bn/- and the Tanzania Forest Services Agency (TFS) at 29.8bn/-.

TPA performance had to do with involvement of the private sector—DP World and Tanzania East Africa Gateway Terminal - in its operations as the move had scaled up its revenues, he added.