Africa Development Economy Finance Government Tanzania

Learning institutions in Tanzania hand over US$2B in dividend

The Tanzanian government has taken a strong stance on generating internal funding of its own development projects, while dividends and revenue shares are crucial development funding sources.

In realization of Tanzania’s fifth government strategy to enhance the institution’s efficiency, the government received over $2 million as dividends and contributions from various higher learning institutions in the country.

This comes after President John Magufuli provided a strict ultimatum to 187 state-owned companies and institution (45 days ago) to deliver dividends and revenue shares or face immediate sacking.

According to The Citizen, the Tanzanian Registrar of the Treasury gave a strict directive to institutions on their dividend packages, citing $13,00 as the minimum amount to be submitted.

On the same note, the registrar expects to receive another set of dividends within this week from other institutions, making the total contribution reach over $3.4 million.

On November 24 2019, President Magufuli received over $455 million the government’s dividend and revenue share from 79 entities that the government holds a stake in.

Magufuli stressed on the role of internal revenue collection and dividends submissions to fuel the country’s economy.

“The 1.05 ($455.8 million) trillion will assist in development projects and our budget allocates 40 per cent of the collected revenue to development projects,” President commented.

Further, Dr. Philip Mpango, Minister of Finance and Planning, gave a rather satisfying comment on the higher learning institutions for their contributions, that play a major role in development initiatives, while giving a reminder ultimatum to other 36 institutions and companies to deliver their contributions by January 23.

“Dependence is a shame, you cannot live by depending on your uncle’s help and to me, I am thankful aid dependence is in decline, it had better be like that so that we can cultivate the culture of being independent,” he commented.

Three institutions gave out handsome contributions, which were led by the University of Dar es Salaam handed over $434,000, University of Dodoma and Mzumbe University which gave out over $217,000 each.

Source: The Exchange

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