Govt pushes for bigger returns on investments in its 56 institutions
Chief Secretary Dr Moses Kusiluka speaking during the closing session of a three-day Minority Interests (MIs) Forum for board directors of these companies.
What you need to know:
- This announcement was made by Chief Secretary Dr Moses Kusiluka on Friday, March 28, in Kibaha, during the closing session of a three-day Minority Interests (MIs) Forum for board directors of these companies.
Kibaha. The government is aiming to increase the returns on its investments in companies where it holds minority shares, targeting a rise from the current seven percent to over 10 percent in the next financial year.
This announcement was made by Chief Secretary Dr Moses Kusiluka on Friday, March 28, in Kibaha, during the closing session of a three-day Minority Interests (MIs) Forum for board directors of these companies.
“I challenge you to boost the return on investment from the current seven percent to over 10 percent annually. To achieve this, you must improve operational efficiency,” Dr. Kusiluka said.
The Office of the Treasury Registrar (OTR) oversees 308 institutions, including 56 companies where the government holds minority shares. A total investment of Sh86.3 trillion has been made in these institutions, with Sh2.9 trillion allocated to companies with minority government shares and Sh83.4 trillion invested in fully government-owned entities.
Dr. Kusiluka urged directors of companies with minority government shares to increase dividend contributions to the government.
“I believe that in the next financial year, we will see higher dividends from the institutions you manage. This is the challenge I leave with you,” he stated.
In the previous financial year, the government received Sh195 billion in dividends from its minority-share companies, according to OTR statistics.
Dr Kusiluka expressed confidence that newly introduced guidelines for board directors, launched earlier in the week, would enhance efficiency and contribute more to the Government’s Consolidated Fund.
“I have reviewed the guidelines and find them valuable in helping board directors execute their duties professionally and efficiently,” he added, encouraging directors to fully utilize these guidelines to improve effectiveness in their respective roles.
Treasury Registrar Mr Nehemiah Mchechu also urged government representatives on company boards to serve Tanzania diligently.
Treasury Registrar Mr Nehemiah Mchechu
“You are the government’s eyes. You must take your positions seriously; otherwise, you will not be serving the government and the Tanzanian people properly,” he cautioned. “If you cannot fulfill this role due to time constraints, it’s better to step aside for someone else.”
