What will it take to reach the Sh1 trillion non-tax revenue target?

TANZANIA: WITH the end of the 2024/25 financial year just weeks away, the Office of the Treasury Registrar (OTR) is moving closer to achieving a landmark goal: collecting 1tr/- in non-tax revenue. As of early June, nearly 900 bn/- had been secured, placing the target within reach, but not yet guaranteed. The Treasury Registrar, Mr …

TANZANIA: WITH the end of the 2024/25 financial year just weeks away, the Office of the Treasury Registrar (OTR) is moving closer to achieving a landmark goal: collecting 1tr/- in non-tax revenue.

As of early June, nearly 900 bn/- had been secured, placing the target within reach, but not yet guaranteed.

The Treasury Registrar, Mr Nehemiah Mchechu, speaking during a meeting with media editors in Dar es Salaam on June 2, 2025, made it clear that this year’s effort reflects more than just strong financial performance.

It marks a shift in how public resources are monitored, governed and accounted for across the country.

He revealed that between July 2024 and May 2025, the OTR had collected 884.7 bn/-, a 40 per cent increase compared to the 633.3 bn/- collected over the same period in the previous financial year.

This amount is also already 15.3 per cent higher than the entire total for 2023/24, which stood at Sh767 billion.

The numbers tell a compelling story of institutional discipline and administrative reform. Mr Mchechu attributed the surge to tighter oversight, improved enforcement of financial obligations and the deployment of digital systems that allow for real-time tracking of government-linked institutions.

The result, he said, is greater transparency and accountability, outcomes that are increasingly embedded within the DNA of public financial management.

Much of the progress over the past 11 months has been driven by dividend contributions, which accounted for 63.9 per cent of non-tax revenue during that period.

Contributions based on 15 per cent of gross revenue represented another 29.7 per cent, with the remaining 6.4 per cent coming from sources such as loan repayments, interest on on-lent funds and fees collected through the Telecommunications Traffic Monitoring System (TTMS).

This composition reflects the critical role that dividend compliance plays in meeting the OTR’s revenue targets. Underlying this year’s performance is a deeper shift in how public finance is managed.

Mr Mchechu attributed the growth to enhanced monitoring, policy enforcement and the integration of digital systems that now power oversight functions in real time.

Platforms such as PlanRep, ERMS and e-Watumishi have been successfully linked, while the upgraded MUSE system now allows the OTR to track public institution expenditures instantly improving transparency and accountability.

Institutional performance has also come under sharper focus.

Over the course of the year, 111 Chief Executive Officers from public institutions participated in leadership induction programmes aimed at improving governance and strategic management.

The adoption of Key Performance Indicators (KPIs) to assess boards and executive leadership has introduced a results-based approach to institutional accountability. In parallel, the government’s role in minority-shareholding companies has become more assertive.

Mr Mchechu highlighted improvements in shareholder agreements and governance practices, particularly in the banking, industrial and mining sectors.

These reforms are not occurring in isolation. The government’s role as a shareholder is also being redefined, particularly in sectors such as banking, industry and mining, where its participation has become more active. This has included reviewing shareholder agreements and improving governance frameworks, leading to a rise in the value of government investments from 75.79 tri/- in 2022/23 to 86.29 tr/- in 2023/24.

Even as the collection figure nears the one trillion mark, Mr Mchechu emphasised that the last leg of the journey depends on decisive action.

He called on all institutions that have not yet submitted their dividends to do so within the first week of June, ahead of Dividend Day 2025—scheduled for June 10 at State House in Dar es Salaam.

The event, to be officiated by President Samia Suluhu Hassan, will serve as a key moment for evaluating the performance and commitment of public institutions to the national agenda.

As Tanzania prepares for this milestone occasion, the importance of public engagement and transparency remains paramount.