2023-2024 DIVIDEND PAYMENT TO THE REPUBLIC OF TANZANIA GOVERNMENT

Last week on 11th June 2024, a significant financial event took place at the Presidential Palace (Ikulu) of Tanzania , where the government received dividend payments from various state-owned and private enterprises for the 2023-2024 fiscal year.

As a Data Analyst this caught my interest…

About 637 Billion Tanzania shillings were accumulated in dividends for the July 2023 -May 2024 fiscal year (an increase of 183.11%) compared to the 225 Billion Tanzanian Shillings in 2021-2022 fiscal year. This was from business enterprises and institutions that contribute to 15% of gross revenue, contributing a total of 279 Billion Tanzanian shilling and 358 Billion Tanzanian shillings respectively.

Accumulations are allegedly said to continue, and the government expects a total of about 850 Billion Tanzanian shillings by the end of the month of June 2024.

If you don't know what dividend payment is, "Dividend payment” is a term used in finance to refer to the distribution of portion of a company’s earnings to its shareholder.

So, the state-owned enterprises (SOE) or government-owned corporation distributes a portion of its earning to the government.

This occasion not only highlighted the financial returns but also symbolized the successful management and operational e?ciency of the enterprises.

The Tanzanian Government has contributed approximately 76 Trillion Tanzania shillings as investment to 304 enterprises with an expectation of a minimum of 10 Billion as dividend payment.

Out of which, the government has high shares in 248 companies and 56 companies were minority interest (low shares-business companies).

Among the key contributors were leading companies in sectors such as mining, telecommunications and banking. The Tanzania Port Authority (TPA), NMB Bank Plc , Twiga Minerals Cooperation, Airtel Tanzania ,Tanzania Communication Regulatory Authority (TCRA) were notable for their substantial contribution.

These payments are a testament to the strategic investments and reforms implemented by the government to enhance profitability and accountability in public enterprises.

And as Ms. Ruth Zaipuna, the CEO of NMB Bank PLC quoted “When an economy prospers, the banking sector thrives” proving to the President Samia Suluh Hassan of the promising economic development of Tanzania.

Surprisingly, the Top 10 of business enterprise contributors of dividend payments were minority interest companies (government owned a small percentage of the company).

This dividend payment ceremony not only showcased the economic vitality of Tanzania but also reinforced the government’s dedication to utilizing these funds for the nations socio-economic advancement.

It was a moment of pride, reflecting the collective e?orts towards achieving financial independence and sustainable development.

What do you think will happen next year?

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The Top 10 amounted for approximately 421.9 Billion Tanzanian Shillings.