TANZANIA: TANZANIA Breweries Public Limited Company (TBL) shareholders have ratified a dividend of 537/- per share for the period ended December last year, at an Annual General Meeting (AGM).

The dividend approved is equivalent to 158.4bn/-, which is an increase of 85 per cent over the prior year.

TBL Chairman Mr Leonard Mususa, said despite the challenging operating conditions last year, including global geopolitical tensions and local excise duty hikes, the brewer demonstrated resilient growth and delivered significant value to our shareholders.

“Our steadfast execution of strategic initiatives and the market’s confidence in our diverse portfolio of brands resulted in a notable increase in revenue,” Mr Mususa said.

The revenue growth was driven by both beer and spirits, with significant contributions from the core and core-plus segments of the beer business and spirits.

He said the Group continues to execute its proven commercial strategy and increase sales and marketing investments behind its portfolio of beer and beyond beer brands to deliver consistent growth and long-term value creation.

“This accomplishment underscores our commitment to creating long-term value for our shareholders and reinforces our position as one of the nation’s leading contributors to economic growth,” he said.

During the year under review, TBL procured over 74 per cent of its raw materials within the country, directly and indirectly supporting the creation of over a million jobs throughout its supply chain.

Furthermore, TBL paid 586bn/- in taxes to the government last year compared to 528bn/-the year before, solidifying its position as one of the nation’s biggest taxpayers.

TANZANIA: THE Tanzanian shilling has depreciated by 5.0 per cent over the past six months up to July, as it faces heightened demand for US dollars driven by tightening monetary policies in advanced economies and rising global commodity prices.

According to the Bank of Tanzania (BoT)’s Indicative Exchange Rate report, the exchange rate stood at 2,652/40 shillings per US dollar as of yesterday, compared to 2,526/60 at the end of January.

The Monetary Policy Committee (MPC) of the BoT noted in its latest report that while the foreign exchange market continues to experience liquidity shortages, there was some improvement towards the end of June due to increased inflows from tourism, gold, and cash crops.

In the Interbank Foreign Exchange Market (IFEM), exchange rate quotes showed slower movements with narrower spreads compared to the previous quarter.

The shilling depreciated by approximately 2.2 per cent quarter-on-quarter in June, slightly faster than the 1.8 per cent depreciation seen in the first quarter of this year.

“In the retail market, the exchange rate depreciated by around 3.2 per cent quarteron-quarter, which was faster than the 1.9 per cent depreciation in the first quarter,” the report stated.

Market turnover in the IFEM was $87.5 million as of the last Tuesday of last month, down from 129.8 million US dollars recorded in the first quarter of this year and 208.6 US dollars million in the same quarter last year.

The central bank anticipates further improvement in foreign currency liquidity through ongoing policy interventions, including measures to reduce domestic transactions denominated in foreign currency, alongside improvements in the current account.

Economist and investment banker Dr. Hildebrand Shayo recently highlighted that over the past decade, the shilling has depreciated on average by 6.3 per cent annually.

He cited historical rates such as 1,634/99 shillings per US dollar in April 2014, climbing to 2,542/68 in April 2024.

The Monetary Policy Statement (MPS) issued in June attributed shilling pressure to high foreign exchange demand amid tightening monetary policies in advanced economies and elevated global commodity prices.

“To address this pressure, the central bank implemented various measures, including tightening monetary policy, increased engagement in the IFEM, and urging stakeholders to prudently utilize foreign exchange during challenging periods,” the MPS report indicated.

In April this year, the MPS reported a nominal exchange rate depreciation of 11.2 per cent year-on-year, contrasting with less than 1 per cent depreciation in the preceding two years.