Biteko stressed that government-owned entities must reduce over-reliance on state funding and instead generate dividends for the Treasury
Arusha. Deputy Prime Minister and Minister for Energy Dr Doto Biteko has called on public institutions and state-owned enterprises to accelerate reforms in service delivery and strengthen their contribution to national economic growth.
Speaking at the closing session of the Third CEOs Forum for Board Chairpersons and Chief Executives of Public Institutions and State Corporations in Arusha, Dr Biteko stressed that government-owned entities must reduce over-reliance on state funding and instead generate dividends for the Treasury.
“The government has invested over Sh86 trillion in public institutions and corporations, expecting higher productivity and improved services for citizens,” he said.
“Yet some institutions still depend on the government even for salaries and return no dividends. You must take bold steps to become self-sustaining and contribute to the national budget.”
Dr Biteko praised several institutions that have successfully increased their contributions, citing the Tanzania Petroleum Development Corporation (TPDC), which doubled its dividend from Sh 5.5 billion in 2023/24 to Sh 11.1 billion in 2024/25, and the National Housing Corporation (NHC), which recorded a 363 percent increase from Sh1.2 billion to Sh5.5 billion over the same period.
“Institutions must reform continuously. If you collected one shilling last year, make sure it grows to one shilling and fifty cents this year. Progress is essential; there should be no backward steps,” he said.
He also encouraged public sector leaders to act as ambassadors for private-sector collaboration, noting that in many cases private companies outperform public institutions.
“We are beginning to see results where public institutions embrace private-sector efficiency,” he added.
The Deputy Prime Minister further urged executives to tighten controls against revenue leakages and wastage, underlining the responsibility they carry for the welfare of over 60 million Tanzanians.
“Consider yourselves indebted to the people of this country. You must work tirelessly to improve lives and repay that debt through stronger performance,” he said.
Earlier, Treasury Registrar Nehemiah Mchechu said that dividends from public corporations and institutions to the government had surged to Sh1.28 trillion by June 2025, up from Sh601 billion the previous year – a 68 percent increase.
“This is historic. The Treasury has never collected over Sh1 trillion before. Ongoing reforms have made the achievement possible, and we aim to reach Sh2 trillion in the near future,” he said.
Deputy Minister in the President’s Office (Planning and Investment), Stanslaus Nyongo, said the four-day forum brought together over 650 participants who discussed strategies to strengthen governance, improve efficiency, and align institutional performance with the national development agenda.
He reaffirmed the government’s commitment to closely oversee reforms to ensure state-owned enterprises fully contribute to Tanzania’s economic transformation, in line with Vision 2050’s target of becoming an upper-middle-income economy with annual GDP growth of at least 10 percent.
