TBL posts 44/-
billion profit
By Kizito Makoye
Tanzania Breweries Limited (TBL) has posted an after tax profit of
Tsh. 44 billion of the year ending 31 March 2005, according to a financial
statement.
Last week’s statement, signed by Managing Director Justice O’ Donovan, said that
the net profit has increased by 16 per cent to Tsh. 44 billion from Tsh. 37
billion posted last financial year.
The company’s excellent performance over the last twelve months has been
attributed partly to a strong organic growth in clear beer, wines and spirit
volumes.
“TBL absorbed the clear beer excise tax increase in all its mainstreams brands
without passing on price increases to the consumer.” reads the statement.
The company saw its revenues increase from Tsh. 197 billion in the last
financial year to Tsh. 229 billion for the year under review.
TBL has been able to offset Tanzanian shilling depreciating against the Euro and
South African rand and rising fuel prices, which necessitated in rising costs of
imported goods and raw material as well as distribution costs due to its
improved efficiencies, the report stated.
According to the statement, the growth of profit before tax was confined to 16
per cent due to unfavourable currency fluctuations on US$ deposits. TBL has paid
to government a total tax of Tsh. 110 billion.
The total dividend per year has increased to Tsh. 190 from Tsh. 125 last year.
It was paid in two phases of Tsh. 68 and Tsh. 78 per share respectively as in
previous year.
The statement added that a further special dividend of Tsh. 44 per share has
been declared from accumulated reserves.
Mkapa welcomes
Mtwara development corridor
By Angela Mazula
President Benjamin Mkapa has welcomed the signing of the agreement on the Mtwara
development corridor between Tanzania, Malawi, Mozambique and Zambia.
Speaking at the annual conference of Regional Spatial Development Initiative
Co-ordination Committee in Dar es Salaam this week, Mkapa said this was an
important milestone for the countries’ common quest for integration, development
and shared prosperity.
President Mkapa said the agreement now provides a legal and institutional
framework that binds the four countries towards the development of the corridor.
He added that it is also a demonstration of a commitment to collectively tackle
similar development challenges for the benefit of the people. A major step in
development was the ministerial endorsement of the Central Development Corridor
(CDC) early this year by relevant cabinet ministers of the government of
Tanzania and Rwanda.
Mkapa said: “We have also committed ourselves to a public-private partnership to
exploit the abundant natural resources along the corridor such as minerals,
energy, agriculture, forestry, fisheries and tourism, confident that the
economic linkage that will originate from these activities will open many
opportunities for self-development for our people”
Mkapa added that, there must be harmony to the policies, laws and regulations to
help develop the corridor initiatives into investment zones, for which have to
provide specific and modified incentives in accordance with internationally
established conventions and practices.
Minister for Works, John Magufuli said in the meeting that the identified anchor
projects of Mtwara Development Corridor include Mchuchuma Coal-to-Electricity,
Liganga Irone Ore, construction of Mtwara-Mbamba Bay road to link up with
Tanzania and Malawi through Lake Nyasa and the construction of Unity Bridge
across the Ruvuma River to provide direct permanent link between Tanzania and
Mozambique.
He added that the central corridor intend to include the construction of a
railway line from Isaka in Shinyanga Region to Kigali in Rwanda.
Tanzania,
Switzerland launch tripartite initiative
By Kizito Makoye
The governments of Tanzania and Switzerland in collaboration with
the World Bank have embarked on a tripartite initiative in a bid to boost the
country’s economic development.
The programme which was officially launched on Tuesday at Moevenpick Royal Palm
Hotel, has unveiled a wide range of social-economic development activities for
Tanzania addressing priority needs of the country’s economy.
The Swiss government has recently put in place a comprehensive programme,
strengthening the private sector.
Highlighting the specific aspect of national development policies on finance and
investment, trade, agriculture, and industry standards, the Swiss programme
places a special focus on poverty reduction, conducive business framework
conditions and market oriented rural development.
Speaking at the official launch the Swiss Ambassador to Tanzania, Dr. Emmanuel
Jenni said his government supported efforts by the Tanzanian government in
combating poverty and therefore boosting economic growth.
“Switzerland is committing herself with a substantial engagement in private
sector development,” he stressed.
He said the two governments have signed an agreement for two programmes (trade
support and rural livelihood) amounting to US$ 12.3 million (Tsh. 14.4 billion).
Deputy Finance Minister, Abdisalam Khatib said poverty reduction is still a
challenge in rural areas and that the country needs faster economic growth.
PPF observes
increased net income
By Timothy Kitundu
The Parastatal Pensions Fund (PPF) has posted a net income of Tsh.
47.2 billion for the year ending 2004. It is 158 per cent more than the net
surplus posted in 2003, the financial performance has indicated.
The healthy financial position of the fund is attributed to the new registration
of members, particularly from private companies and the compliance in remittance
of members’ and contributions.
Naftal Nsemwa, PPF Director General said through a statement last week that
other factors are improved return on investment due to maintaining quality
investment portfolio and conducive economic environment and proper control of
costs.
Last year, according to Nsemwa, the firm’s net assets available for social
security benefits increased by 15 per cent that is, the size of the Fund grew
from Tsh. 150.9 billion as at the beginning of 2004 to Tsh. 198 billion as at
the end of 2004.
The Fund’s total investment portfolio increased by 33 per cent from Tsh. 134
billion at the end of the year 2003 to Tsh. 179 billion as at the end of 2004.
The major areas for investments include fixed income assets which accounted for
Tsh. 67.1 billion in 2003 and increased to Tsh. 99.4 billion in 2004, equity
investments which accounted for Tsh. 16.4 billion in 2003 but in 2004 accounted
for Tsh. 28.0 billion.
“In terms of investment properties, there was an increase to Tsh. 51.5 billion
in 2004 from Tsh. 50.5 billion in the year 2003. Total investments stood at Tsh.
178.9 billion for 2004 while the same for 2003 stood at Tsh. 134.1 billion, an
increase of 33 per cent,” he added.
Disbursements in 2004 decreased by 12 per cent from Tsh. 16.6 billion in 2003 to
Tsh. 14.7 billion in 2004. The benefits to members registered under traditional
scheme were disbursed depending on contingencies which made particular benefits
crystallize.
“Member employees attaining retirement age or those whose employment ceased on
medical grounds were paid their commuted and old age benefit entitlement,” he
said.
Tanzania
honours American photographer and tour operators
By Express Reporter
Tanzania has awarded an American photojournalist and four tour
companies for their excellent marketing campaigns to sell the country’s tourism
in the US and other countries world-wide.
The award giving ceremony was held during the annual Congress of the Africa
Travel Association (ATA) in Nairobi, Kenya, recently.
The Minister for Natural Resources and Tourism, Zakia Meghji said when
presenting the awards to the winners that such awards would continue to inspire
more companies to join the race in promoting Tanzania in the US and other
markets.
American photojournalist, Robert Eilets received the first Tanzania Tourism
Award for 2005. His photographs have dominated a number of US magazines, showing
Africa’s cultural heritage.
In recognition of tour company which has brought large numbers of Americans and
other tourists to Tanzania, the Colorado based “Born Free Safaris” emerged the
winner of this year’s award. The company has brought over 25,000 tourists to
Tanzania since its establishment 31 years ago.
Florida based “Safari Ventures” was honoured for its commitment to bring high
level academic and university groups to Tanzania and initiating an Africa
Awareness Programme.
Faculty and university students pursuing commercial and investment opportunities
or independent study research for academic credits have made multiple and
repeated travels to Tanzania from prestigious Harvard Business School, Peace
University in New York City as well as various medical professional groups.
“Deeper Africa”, a Colorado based tour operator company, specializing in East
African destinations, with 75 per cent of its Africa, destined clients visiting
Tanzania also won an award. The company saw its sales to Tanzania grow by 40 per
cent last year.
Thomson Safaris with its head offices in Boston took this year’s last award in
recognition of its humanitarian projects and human face its business operations
in Tanzania.
Tanzania Tourism Awards were established in 2001 by the Tanzania Tourist Board
(TTB) to honour individuals and companies which have worked hard in promoting
and selling Tanzania in the US travel markets.
The just-ended five day ATA congress brought together several African tourism
ministers and travel players with their African-American counterparts. Tanzania
was represented by 16 officials from key departments in the Ministry of Natural
Resources and Tourism.
Initial funds
raised invested in shares says UTT
By Timothy Kitundu
The Umoja Fund, operated by Unit Trust of Tanzania (UTT), has said
that the funds that will be raised during the initial sale of units will be
invested in listed shares provided that the total amount invested in this market
segment shall not exceed 30 per cent of the total investment of the scheme.
According to UTT acting Chief Executive Office, Gration Kamugisha the fund,
which is the first Collective Investment Scheme in the country, has been
established as a pioneer empowerment fund that gives an opportunity to Tanzanian
citizens to invest and take a stake in privatization.
This opportunity, according to Kamugisha will empower Tanzanians further to
participate in the capital markets and obtain a return on their investment.
“The scheme is structured in such a way that it provides an opportunity to
Tanzanians from all walks of life to be empowered through wide ownership of its
units to encourage a culture of saving in financial assets,” he said.
According to Kamugisha, the government has approved a discount of 30 per cent on
the initial value of Umoja Fund units whereby instead of being sold at Tsh. 100
per unit they are sold at Tsh. 70 per unit.
He said the government has reserved for the scheme shares of the Tanzania
Breweries Limited (TBL) and Tanzania Cigarette Company Limited (TCC) valued at
Tsh. 11.57 billion as at March 2005.
He said, these shares in turn have already earned the fund a dividend of Tsh.
634.36 million which has been reinvested, thus the fund has an income before
anybody has invested.
Kamugisha added that a well-structured network of various ‘Collecting Agents’
has been laid out to enable Tanzanians easy access. He mentioned the ‘collecting
Agents’ as all branches of NMB, CRDB Bank and Tanzania Postal Bank. Others are
Akiba Commercial Bank, Tanzania Posts Corporation and licensed dealing members
of the Dar es Salaam Stock Exchange (DSE).
He said, after the initial sale period, the fund is closed to July 31, 2006.
During that period no investor will be allowed to buy or sell units in the fund.
The Net Asset Value (NAS) of the fund, according to him, will be published every
Friday during the lock in period and thereafter on every working day.
The Umoja Fund was established in May 2005 in compliance with the Capital
Markets and Securities Act 1994 as amended and the Capital Markets and
Securities (Collective Investment Schemes) Regulations 1997.
TaTePa grows
stronger
By Timothy Kitundu
Tanzania Tea Packers Limited, TaTePa group of companies has recorded
a net profit of Tsh. 1.3 billion for the past financial year, the Group Board
Chairman Joseph Mungai announced recently.
Speaking at the firm’s 11th Annual General Meeting held over the weekend in Dar
es Salaam, Mungai said that it has been an exciting time to see the firm evolve
at a healthy pace to become one of Tanzania’s big and strong companies in the
private sector.
“Our tenth anniversary appears to have crept upon us, because it still seems
just like yesterday when we set up a small tea packing business and created the
Chai Bora brand,” Mungai said.
According to Mungai, the firm was delighted to learn that the government has
announced a Value Added Tax (VAT) exemption specifically for tea packed locally
from locally grown tea, with effect from July 2004.
This, according to him has an important impact on the business. It will increase
the volumes and allow the firm to reduce its prices to the benefit of the
customers.
Mungai added that last year, the firm became the number one company to source
and pack a range of top quality organic teas within the country, with the launch
of African Infusions.
TaTePa, according to Mungai, has commenced exporting and was now exploring
inquiries from Kenya and South Africa.
In terms of organic and herbal tea, Mungai said that until now, most Tanzanians
herbal tea drinkers were obliged to buy foreign imports at vastly inflated
prices.
He said, African Infusions, which is a 100 per cent organic and caffeine-free
has been enthusiastically received within the market especially in the
hospitality industry.
Mungai commended the dealers, sellers, retailers and consumers for their
concerted support in 2004.
ILO positive
to labour movement
By Angela Mazula
The International Labour Organisation is positive ahead of the introduction of
free movements of labour in the East African Community. The organisation hopes
that economic, social and political advantages will be recognised.
Speaking during a meeting of consultative bodies on labour migration on Tuesday
this week, Ali Ibrahim Director of ILO Area Offices for East Africa, commended
the greater freedom of movement of people and labour.
He said the establishment of national tripartite consultative bodies on labour
migration was good. They should advise governments and social partners on policy
and implementation measures that will pursue the realization of Article 104 of
the EAC Treaty.
He added that the development and the access to solid information and data
concerning labour markets and labour migration will feed into and influence
migration policy formulation and implementation.
“Harmonization of labour legislation in the three countries will be based on
best practical and relevant international standards,” said Ibrahim.
It is imperative for the concerned countries to appreciate that whatever the
situation, needed skills for a growing economy will be outsourced from elsewhere
if they are not available in the country, he stressed.
Minister for Labour, Youth Development and Sports, Professor Juma Kapuya said:
“As a nation we need to think critically on the recommendations once they are
implemented and prepare the nation for that eventuality so that when the time
comes we won’t have the problems of acceptance and implementation.”
Kapuya added that there are issues which the government can recommend such as
the development of policies and regulations which are uniform across the board.
Kibondo
District Council buys heifers
By Damas Ayuke, Kigoma
To enhance modern dairy farming Kibondo District Council in Kigoma Region has
bought 40 heifers for Tsh. 15,200,000.
The modern dairy farming project is implemented by the Kibondo Tanganyika
Christian Refugee Services (TCRS), thanks to sponsorship of the Danish
International Development Agency (DANIDA).
Kibondo District Council Planning Officer, Merecksedek Humbe gave this
information when talking to reporters regarding projects implemented by TCRS in
Kibondo District.
Kibondo TCRS Development Agency is now planning to purchase 200 more heifers.
‘Credit
interests hamper development’
By Kizitto Joseph
The Director of Habitat for Humanity, Anna Tibaijuka has said that the
government’s policy on credit interests is an obstacle to development.
She said delegates from UN-Habitat are in the country to encourage financial
institutions to give credits to people for building simple houses. Speaking in
Dar es Salaam, Tibaijuka said it is only credits with low interests that can
help the country.
“We are having a dialogue with financial institutions in the country to ask them
give credits of simple interest to enable women in housing cooperatives to build
houses, “ she said.
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