DAR ES SALAAM: ECONOMIC analysts have hailed the improving performance of State-Owned Enterprises (SOEs), saying the turnaround reflects the success of government reforms and underscores the importance of stronger Public-Private Partnerships (PPPs) in delivering the country’s Vision 2050 ambitions.
They said the growing contribution of public institutions to the national economy demonstrates significant progress in improving efficiency, accountability and commercial viability, transforming SOEs from fiscal burdens into strategic drivers of economic growth.
Speaking separately to the ‘Daily News’, economic analyst Dr Hildebrand Shayo said the steady rise in dividends and statutory contributions signals a shift towards more productive and financially sustainable public investments.
“The consistent increase in dividends and statutory contributions highlights a transition towards more productive, commercially viable and fiscally sustainable public investments,” he said.
Dr Shayo said the improved performance reflects stronger governance, greater accountability and enhanced operational efficiency, with public institutions making increasingly meaningful contributions to government revenue.
He said sustaining the momentum will require SOEs to diversify revenue sources, expand into regional and international markets and deepen partnerships with the private sector to attract capital, technology and expertise.
“Regular performance evaluations, adherence to sound corporate governance and reinvestment of profits into productive projects will be essential for building resilient institutions,” he added.
On Tuesday, the government received a record 1.327tri/- in dividends and statutory contributions for the 2025/26 financial year, up from about 637bn/- in 2021 and 30 per cent higher than the 1.028tri/- collected in the previous financial year.
During the event, President Samia Suluhu Hassan described the private sector as a vital partner in national development, saying stronger collaboration between public institutions and private investors is essential for mobilising investment, expanding productive capacity and sustaining economic growth.
Tanzania Association of Accountants (TAA) President, Godvictor Lyimo, described the steady increase in dividend payments as clear evidence of improved accountability and efficiency across public institutions.
“The continuous growth shows institutions are becoming more accountable and are being measured by efficiency and returns on public investments,” he said.
Mr Lyimo said expanding PPP would help mobilise capital, while reducing reliance on government borrowing. “Private investors can finance projects at lower cost, easing pressure on public debt and accelerating project implementation,” he said.
He added that greater private-sector participation would also improve efficiency and service delivery by introducing stronger performance-driven management practices.
“If we create the right frameworks for collaboration, we can unlock enormous resources and accelerate national development beyond what government alone can achieve,” he said.
Mr Lyimo also called for public institutions to adopt private-sector approaches to recruitment, talent management and performance measurement.
“We need to infuse public institutions with the mindset and performance culture of the private sector,” he said. Mzumbe University senior economics lecturer, Dr Eliaza Mkuna, said the rising dividend payments demonstrate a significant turnaround in the performance of many SOEs.