Banks upbeat
By Timothy Kitundu
The performance of the major banks in the country for the year
ending 2004 was impressive; all banks with the exception of a few made profits.
A statement from the National Bank of Commerce (NBC) that was published in
pursuant to the disclosure requirements under section 47 of the Bank of Tanania
(BOT) Act of 1995, says that NBC made a profit after tax of Tsh. 11.069 billion
for its operations in the 2004 financial year.
The bank’s records show that in 2004, total assets stood at Tsh. 459.522 billion
for the quarter ending 31 December 2004, whereas total assets for the quarter
ending 30 September 2004 stood at Tsh. 449.927 billion.
According to officials of the bank, the bank’s loan and advances portfolio stood
at Tsh. 178.614 billion for the quarter ending 31 December 2004 while the same
stood at Tsh. 175.082 billion for the quarter ending 30 September 2004.
Barclays Bank Tanzania Limited (BBTL) announced a Tsh. 3.219 after tax profit
for its operations during the 2004 financial year, registering a 16 per cent
rise compared to the performance in the preceding year.
The performance, according to the bank officials, was due in large part to
progress made in the treasury department, where foreign exchange income
increased by 70 per cent following introduction of new treasury products and
increased participation at the Inter-Bank Foreign Exchange market (IFEM).
The bank’s net interest income rose by 16 per cent compared to the preceding
year to reach Tsh. 8.411 billion which was attributed to the increase in both
local and foreign currency loans.
The bank’s records indicated that fees and commissions, which were the key to
growth, increased by 14 per cent reaching Tsh 3.116 billion, a trend also
attributed to good performance of the treasury.
The bank’s total assets as at 31 December 2004 stood at Tsh. 191.755 billion
which slightly decreased, while total assets for the previous quarter ending 30
September 2004 stood at Tsh. 200.853 billion.
The bank’s loans, advances and overdrafts was Tsh. 125.937 billion as at 31
December 2004 while the same stood at Tsh. 129.481 billion for the previous
quarter.
Standard Chartered Bank, one of the big banks in the country recorded a profit
of Tsh. 12.565 billion for the year 2004.
The bank’s total assets stood at Tsh. 375.235 billion as at 31 December 2004
while the total assets for the quarter ending 30 September 2004 stood at Tsh.
344.304 billion.
The bank’s loans, advances overdrafts and bills stood at Tsh. 200.180 billion as
at 31 December 2004 while the same stood at Tsh. 184.792 billion as at 30
September 2004.
Of the big banks, Stanbic bank is the one which made a loss in the quarter
ending December 2004 of Tsh 1.070 billion. However the bank made Tsh 1.074
billion profit for the year 2004.
The bank’s total assets as at 31 December 2004 stood at Tsh. 251.628 billion
while the same stood at Tsh. 259.638 billion as at 30 September 2004.
The banks loans, advances and overdrafts stood at Tsh. 114.826 billion as at 31
December 2004 while the same stood at Tsh. 115.056 billion as at 30 September
2004. Overall the banks showed a positive trend in terms of profits and growth
for the year 2005 with even most of the medium and small banks making profits.
Mobitel has
eyes on Zantel gateway
By Kizito Makoye
Hardly five days before the TTCL’s monopoly to operate exclusively
the gateway for international exchange lines expires, MIC Tanzania Limited
(Mobitel) has expressed interests either to have its own gateway or to use
Zantel’s gateway, depending on the directives from Tanzania Communication
Regulatory Authority (TCRA).
Mobitel Chief Technical Officer Eng. Tobias Jack said the end of TTCL’s monopoly
will pave way for the company to utilise available opportunities depending on
market situations.
Jack said the fact that Mobitel will no longer be obliged to subscribe to TTCL
for international lines will give the company more options to look for
competitive rates, where possible to use Zantel’s gateway.
Under TTCL’s monopoly all mobile phone companies have been obliged to channel
their international calls via TTCL’s gateway.
TCRA has granted a licence that would allow Zantel to operate basic and mobile
traffic voice to Mainland Tanzania effectively this February.
The company will also have an option to make use of its two gateway access to
international exchange lines. With Zantel operations to the Mainland, analysts
predict telephone tariffs both local and international will decrease.
In another development, Buzz has unveiled its plans for 2005. Sales Director
Ronald Mtawali uncovered the secret around the aggressive expansion plan for
this year at a press conference on Tuesday.
“Buzz is going strong at this time and we will continue to expand heavily,” he
said adding that “our expansion plans for 2005 are even more ambitious … we set
up a new cell site every working day for the next coming months … over 90 new
sites will be set up nationally this year.”
Buzz will be the first to serve the residents in remote places in Lindi,
Shinyanga, Kagera, Dodoma, and Songea, according to Mtawali.
Mitumba
shortage coming soon
By Express Reporter
The Tanzania Association of Mitumba Dealers has broken the silence
and said that over 300 containers carrying second hand clothes are stranded at
Dar es Salaam Harbour following the owners’ failure to clear them due to
increased tariffs.
The tariffs rose after the implementation of the East African Community (EAC)
Customs Union that came into effect in January this year.
The Association said in a statement signed by its Chairman that they had taken
all necessary steps to dispute the new tariffs including writing to the Minister
for Finance, Basil Mramba and called for all dealers to remain calm during this
difficult time.
“The increase in tariffs is against the will of our members,” reads the
statement.
The statement said that due to changes in the taxation system, Tanzania Revenue
Authority (TRA) has raised the tariffs from 25 per cent to 614.2 per cent.
It further elaborated that to clear a 40 feet container with 500 bales one has
to pay Tsh. 20.418,750 (US$ 18,562.50) excluding VAT compared to Tsh. 3,324,886
(US$ 3,022.60).
The statement added that VAT has risen from Tsh. 3,372,776 (US$ 3,066.6) to Tsh.
6,743,253 (US$ 6,130.23)
Thus, following the new system businessmen have to spend Tsh. 27 million instead
of Tsh. six million to clear a container.
For the consumer it means that a second-hand shirt which was previously sold at
Tsh. 500 will be sold at Tsh. 3,000.
A statement from TRA in January said that the new tariffs for second-hand
clothes have not been fixed by the Authority as claimed by the traders adding
that, it was the government through the Parliament, which endorsed the tariffs.
The statement said the tariffs for second-hand clothes have risen from 25 per
cent to 50 per cent and not more as it was reported.
“Businessmen are asked to assess critically, before they decide to halt their
businesses,” said the statement.
The statement further clarified that in altering the tariffs for imported
commodities, the goods would be subjected to same tariffs across East Africa.
Barclays
outlines future plans
By Timothy Kitundu
Barclays Bank Tanzania Limited has announced that it will soon open
another branch in Dar es Salaam with another branch in Mwanza planned for the
end of the year.
Rished Bade, the Bank’s Financial Director said in Dar es Salaam recently that
after opening the second Dar es Salaam branch, the bank will have a total of
four branches. He said currently the bank has a total of 7,500 customers.
Highlighting the performance of the bank, he said, profit before tax increased
by 36 per cent to reach Tsh. 3,785 million from the previous year; a performance
which was due to progress made in the treasury department.
“Our foreign exchange increased by 70 per cent following the introduction of
some new treasury products and increased active participation in the interbank
market. Customers have benefited from the products such as exported forward
purchases and swaps,” he said.
According to Bade, net interest income climbed 16 per cent from the previous
year, to Tsh.8.411 billion and the increase was a result of an increase in both
local and foreign currency loans.
He further said that BBT performance was affected, to some extent, by rising
interest rates on the Treasury bill market, which has a direct impact on the
cost of funding thus reducing the margins especially on corporate lending.
Despite the growth in business activities and opening of new branches, he said,
the bank’s cost base has largely remained flat, whereby staff costs grew by less
than seven per cent and staff numbers increased by 11 per cent.
As for the operations side, Bade added that various strategies were adopted to
increase efficiency in the service delivery aspect to customers. The strategies
resulted into a cost saving of six per cent, which saw operating and
administrative costs down to Tsh. 3.6 billion from Tsh. 3.8 billion.
“Expansion of retail strategy from that of serving only net worth prestige to
now include standard retail segments has also made an impact to the performance,
the strategy is expected to yield better results in the coming years,” he said.
According to Bade, the introduction of business solution preposition for small
and medium business in July last year was a great move which accelerated the
growth of the bank’s retail business, a move which has brought the bank closer
to the people.
In terms of asset growth, he said, there was a modest increase of assets by 10
per cent compared to previous years when growth of 50 per cent was not uncommon.
This is a reflection that the business is now at a consolidation stage after
four years of operation.
Adding that apart from increased interest rates in the treasury bills market,
Tanzanian economy has remained strong and indicators show that the growth seen
in the past three years will continue at the same pace.
Ministry banks
on ICT skills
By Joshua Mshana
Skills in Information and Communication Technology (ICT) are very
important for businessmen as it will help them to locate markets and other
business opportunities, enabling then to develop their businesses.
Wilfred Nyachia, the Permanent Secretary in the Ministry of Industry and Trade
said this during the opening ceremony of the ICT Training for ministry officials
in Dar es Salaam over the weekend.
“ICT has become the basic tool in today’s office. Anyone who does not utilize it
effectively will definitely be left behind in today’s competitive business
world."
"In today’s business, ICT tools are used to locate markets and other business
opportunities, for communicating speedily all around the world, to design
presentations and business reports professionally and to make well presented
calculations,” he said.
The Permanent Secretary also thanked the Tanzania Chamber of Commerce, Industry
and Agriculture (TCCIA) for developing the private sector and recognizing the
need for ICT to businessmen.
Earlier, Aloys Mwamanga, the Vice- President (Industry) of TCCIA said that,
TCCIA has taken steps to ensure that ICT is accessible to the business community
in Tanzania.
“Since 2003, we have been training a number of business people in ICT skills
such as Office Automation, Computerized Accounting and Website Design and
Development."
" We have tried to formulate our course materials so that what is taught is
relevant to the day-to-day running of business."
"We hope at the end of this training programme, the materials taught will be
relevant to your work and will make the execution of your work easier,” he said.
With a globalised world, ICT skills have become increasingly important.
Isles collect
increased revenue
By Timothy Kitundu
The transfer of excise duty claims from the Union Government to
Zanzibar has enabled the Isles to collect total revenue of Tsh. 6.5 billion for
October 2004, surpassing the set target of Tsh. 5.4 billion.
The Bank of Tanzania Monthly Economic Review for November 2004 reveals that in
the performance by revenue category, the collection from tax sources amounted to
Tsh. 6.3 billion, accounting for 96.9 per cent of total revenue surpassing the
monthly target of Tsh. 5.1 billion by 23.5 per cent.
Collections from import duties amounted to Tsh. 1.5 billion, accounting for 83.3
per cent of the targeted Tsh. 1.8 billion mainly due to a decline in imports.
VAT and excise duty (local) collection amounted to Tsh. 3.0 billion remarkably
surpassing the targeted 1.5 billion associated with transfers of excise duty
claims from the Union Government.
Income tax collections according to the review, reached Tsh. 0.5 billion
accounting for 83.3 per cent of the monthly target of 0.6 billion.
Revenue from the “other taxes” category amounted to Tsh. 1.3 billion, exceeding
the monthly target of Tsh.1.2 billion by 8.3 per cent, due to relative increase
in trading activities.
Non-tax revenue amounted to Tsh. 0.2 billion, accounting for 66.7 per cent of
the set target of 0.3 billion and accounting for 3.1 per cent of total revenue.
BoT presents
food price figures
By Timothy Kitundu
The Bank of Tanzania (BoT) has announced that the general price
increase for food crops in recent months has been influenced by cross border
trade, which reflects food shortages in the neighbouring countries and hoarding
practices by some traders, anticipating higher prices in the future.
In its Monthly Economic Review for November 2004, BoT says that food supply in
the country was still favourable despite food shortages in some regions,
particularly in Shinyanga, Coast, Kilimanjaro Arusha, Manyara and Tanga regions.
According to the review, the average monthly food prices increased as compared
to prices recorded in September 2004.
However, on annual basis, the average wholesale prices of maize, the main staple
declined seven per cent to Tsh. 16,440 per 100 kg. as compared to Tsh. 17,713
recorded in October last year.
The Strategic Grain Reserve (SGR) stock as at the end-October 2004 increased to
92,710 tonnes from 67,685 tonnes recorded at end-September 2004.
Apart from maize, the stock comprises 3,826 tonnes of wheat, and 101 tonnes of
rice provided by the government of India as food grant.
“Similarly, the SGR stock at end-October 2004, was higher by about 56.1 per cent
when compared to the 59,379 tonnes recorded for the corresponding period in
2003,” reads part of the review.
The increase in SGR stocks is mainly explained by SGR purchases from the surplus
regions. For the period July-October 2004, the SGR department purchased 62,237
tonnes of maize and it is likely to meet the target of purchasing 100,000 tonnes
of maize during 2004/05.
Meanwhile, the SGR department sold 2,718.4 tonnes of maize to prisons department
and 4,813 tonnes of rice to private traders for the period July – October 2004.
Food grains held by registered private traders were 174,072 tonnes at
end-October 2004, comprising 55,221 tonnes of maize, 42, 038 tonnes of rice and
76,813 tonnes of wheat. This brings the total stock of food grains to 266,782
tonnes at end-October 2004.
CIBDS
introduces diploma course
By Angela Mazula
The Dar es Salaam based Centre for International Business Development Services
(CIBDS) in partnership with the International Trade Centre is planning to
introduce a professional Diploma in International Purchasing and Supply Chain
Management.
Speaking to The Express on Tuesday John Mwakangala, CIBDS Technical Coordinator
said that the course would enhance the competence of local practitioners and is
part of CIBDS efforts designed to develop human resource management capacity.
He said that the course will promote the competitiveness of enterprise (public
and private sectors) through better purchasing and supply chain management.
“The programme to be launched next month will target all people with experience
in procurement engineering, medicine and other related areas,” Mwakangala said.
He added that the course will meet the National Board for Materials Management
(NBMM) criteria.
TTCL aims for
customer care
By Timothy Kitundu
The Tanzania Telecommunications Company Limited (TTCL) will continue
its customer education promotions to enable the firm to take its services closer
to its customers. The initiative will be conducted through competitions and
countrywide campaigns.
Peter Lusama, TTCL Coastal Zone Marketing Manger told The Express in Dar es
Salaam Monday that the firm was committed in popularizing its services.
Speaking earlier during a prize giving ceremony to winners of a question and
answer competition, Priscilla Chillipweli, TTCL’s Chief of Planning said that
the firm recognizes the important role played by its customers that is why it
will be giving them incentives.
SMEs want
better conditions
By Angela Mazula
Representatives from Small and Medium Entrepreneurs (SME) are
requesting the government to support their business to improve the opportunities
for the sector.
According to Hilda Loomis, Managing Director of Azalea Fruit Products, the
government should provide subsidies to SMEs. More importantly, Loomis stressed
the fact that SMEs at present find it difficult to get bank loans, something
which she thought the government should look into.
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