Author: broker

Africa-Press – Tanzania. DAR ES SALAAM Stock Exchange (DSE) is looking at a strong recovery this year after experiencing one of the lowest activities ever recorded of 104bn/- last year.

According to Orbit Securities Company, the first six months this year has seen DSE recording an equity turnover of 75bn/- which is about 42 per cent higher than a turnover of 52.7bn/- of the similar period last year.

The number of shares that was transacted also improved from 68 million shares in the first half of 2021 to 94 million shares that was transacted during the six months this year.

“More on the stock market performance, we have observed that in the six months domestic equities have performed better than the cross-listed equities,” the report said.

As a result, the domestic Index went up 10 per cent representing the growth in the domestic market cap (TSI), which closed the period at 10.39tri/-.

As activities in the market revamped so did the foreign investors’ participation in the market during the first six months of the year. Overall foreign investors’ participation dominated the bourse.

Total foreign participation in the equities was around 49bn/-which makes up about 65.41 per cent of all purchases on the bourse, subsequently, the selling from foreigners amounted to 46.76bn/-.

Local participation slightly contracted to 25.9bn/- purchase and 28bn/- selling equivalent to 34 per cent and 37 per cent, respectively.

The cross-listed stocks remained in the red for most of the first half-year with the reported sell-off of foreigners in the Nairobi Stock Exchange, the bourse, in general, remained bearish, as a result affecting the cross-listed companies on the DSE bourse.

The Jubilee Holdings (JHL) and East African Breweries (EABL) experienced the greatest decline, a 21 per cent drop from 6,450/- to 5,050/- and a 20.8 per cent drop from 3,360/- to 2,660/- per share respectively.

The rest of the counters; KCB and National Media Group (NMG) followed suit, dropping by 17 per cent and 10 per cent, respectively.

On the domestic counters, bank stocks outperformed the market greatly, with investors making double digits returns on the stocks just for six months.

The NMB was the top performer, making a 56 per cent capital gain, from 2,000/- per share at the beginning of the year to 3,120/- per share at end of June.

Two counters, DSE and CRDB also lined up as top performers both recording 54 per cent and 42 per cent capital gain for the period.

Furthermore, CRDB also doubled as the top mover for the period, accounting for about 30 per cent of all market activities for the period by generating 22.6bn/-turnover.

For More News And Analysis About Tanzania Follow Africa-Press

UGANDAN Minister of State for Works and Transport, Mr Byamukama Fred has expressed his country’s readiness to strengthen business cooperation with Tanzania, following notable improvements in transport infrastructure in the Central Corridor.

He made the remarks mid this week during his tour of Isaka Dry Port in Kahama District of Shinyanga region and Mwanza South Port in Mwanza region, to see the businesses conducted in the Central Corridor.

The minister was delighted with implementation progress of the projects at Mwanza South that include construction of the new ship – MV Mwanza Hapa Kazi Tu and rehabilitation of MV Umoja cargo ship.

“These are multi- billion projects, which will serve not only Uganda and Tanzania but also other neighbouring countries.

Marine transport ensures safety of the cargo and timely delivery,” he said.

Improvements in marine transport will reduce traffic congestion and help the Tanzanian government to save money that could be used to rehabilitate road infrastructure that could have been damaged by heavy trucks.

He gave an example of tonnes of fuel that passed through the Mwanza South Port to Uganda a few months back and arrived safely to the destination.

The Ugandan minister added that the construction of the Standard Gauge Railway (SGR) will also stimulate business between the two countries.

The Central Corridor Transit Transport Facilitation Agency (CCTTFA) Executive Secretary, Advocate Flory Okandju, said that infrastructure improvement in Tanzania will help to remove trade barriers among East African countries.

He added that improving infrastructure means economic growth, poverty eradication and employment creation.

“We also call upon Ugandan minister to make sure the same infrastructure are also available in his country so that we can strengthen our businesses… we also call on all East African countries to make use of the Central Corridor,” he said.

The Acting Lake Zone Ports Manager, Mr Vincent Stephen, said that cargo volume has been increasing at Mwanza South Port, following improvement of the port infrastructure.

According to him in 2021/2022 the port targeted to receive 195,000 tonnes of cargo but it surpassed the target by receiving 230,000 tonnes. “We expect an increase to between 300,000 and 350,000 tonnes, this year,” he said.

The Acting Chief Executive Officer for Marine Services Company (MSCL), Mr Philemon Bagambilana said that rehabilitation of the cargo ship- MV Umoja is at over 30 per cent.

The rehabilitation involves, among other things, cargo capacity from 19 to 21 wagons and is expected to be completed in February next year.

TANGA CEMENT PUBLIC LIMITED COMPANY DSE: TCPLC
INCORPORATED IN THE UNITED REPUBLIC OF TANZANIA “TANGA” OR “THE COMPANY”
Further to the joint announcement made by HeidelbergCement AG (“Heidelberg Cement”) and
AfriSam Mauritius Investment Holdings Limited (“AfriSam”) on 26 October 2021 (“the Previous
Announcement”), the shareholders of the Company are referred to the subsequent joint
announcement by the aforementioned parties made on 30 June 2022 (“the Joint
Announcement”) providing an update in relation to the proposed acquisition by Scancem
International DA (“Scancem”), a subsidiary of HeidelbergCement, of 43,504,403 ordinary shares
in Tanga constituting AfriSam’s 68.33% shareholding in Tanga (“the Acquisition”). Shareholders
are urged to read the Joint Announcement.

Dar es Salaam. The Tanzania Ports Authority’s market share in neighboring Rwanda has achieved a 90 percent annual increase, with Dar es Salaam and Tanga ports handling by at least 1.3 million metric tonnes this year compared to only 922,135 metric tonnes in the 2017/18 financial year.

The Tanzania Ports Authority (TPA) Director General, Mr Eric Hamissi, said this yesterday during a courtesy visit to the authority by Major General Charles Karamba, Rwanda’s Ambassador to Tanzania.

According to Mr Hamissi, the increased cargo volume is attributed by TPA’s market strategy for which much of the landlocked country’s import and export cargo go through Dar es Salaam and Tanga ports and thus plays a significant role in Kigali’s economy.

“In addition to our market strategy, we also thank Rwanda’s business communities for not only promoting our ports but also for making Dar es Salaam and Tanga as their preferred ports for their imports and export,” he noted.

According to him, TPA has massively devoted itself in, re-establishing and maintaining trade relationships between the authority and Rwanda’s business community so as not only to serve them better, but also to render its services efficiently.

He, therefore, promised the diplomat saying: “TPA will continue working on solving various challenges that the businesses might encounter and create a better environment in which better services will be provided, thus guaranteeing a smooth operation especially during cargo handling services.

For his part, the Rwanda diplomat commended the authority and added that: “As the diplomatic mission, we obviously need to be link with TPA leadership though its Director-General, this will help us in solving various challenges that our businesses might be facing.”

According to him, Rwanda’s cargo volumes through the said two ports have been increasing annually which is attributed to the finest services that we get as well as ongoing infrastructure improvement in the said ports.

He added: “Our economy is growing, we export more so as we import, and this is why there is such an increase in volume when it comes to Rwanda’s imports and exports in the ports of Dar es Salaam and Tanga.

According to him, the cargos are related to food stuff, electronic appliances and machinery, construction, agriculture, and the automobile.

Media reports indicate that with TPA’s innovation, Rwandan importers and exporters will no longer have to travel to Tanzania to clear their shipments.

This is due to the fact that TPA has opened a liaison office which is expected to operate as a one stop centre for traders to pay and clear their goods from Kigali without having to travel to Dar es Salaam.

This means that Rwandese traders will have the opportunity to clear their cargo just within their motherland, thus helping in cutting the cost of doing business and reducing the hurdles within the logistics and supply chain.

It is said that all are done in the name of ensuring TPA improves the business environment for its clients in neighboring Rwanda.

By The Citizen Reporter

ZANZIBAR economy is projected to grow at 6.5 per cent this year from last year’s 5.2 per cent, the House of Representatives was told on Tuesday.

Minister of State, President’s Office, Finance and Planning Dr Saada Mkuya Salum attributed the speedy economic growth to the International Monetary Fund (IMF) soft loan to mitigate the impacts of Covid-19; increased tourist arrivals; improved revenue collections as a result of intensified systems; increased industrial production; and improved commercial activities by small entrepreneurs, among other factors. Moving the Development Plan and 2022/2023 budget outlook in the house, Dr Mkuya said the government intends to further pursue the blue economy, strengthen infrastructure, tourism and social services to wananchi. Under the blue economy, the minister cited construction of the integrated Mangapwani Port, Kibweni Port backup as well as supportive infrastructure and maintenance facility; establishment of seaweed processing factory; and increased seaweed production as the main planned activities.

The government is also determined to strengthen maritime transport and trade, the minister said. Construction of Pemba airport, highways and feeder roads; improved human settlements; and improved digital network services are among the key budgetary targets under infrastructure development.

The minister said the government plans to collect 2,207.2bn/- for recurrent and development expenditures in the 2022/2023 fiscal year, a 19.6 per cent increase from the current budget of 1,845.6bn/-

According to the minister’s proposal, almost half of the envisaged revenues will be directed to development projects.

Minister Mkuya said development projects will consume 1,097bn/-, which is 49.7 per cent of the total budget, with 1,110.2bn/- channeled to recurrent expenditures.

She said the government spending will focus on flagship projects, with the blue economy; transport infrastructure; tourism; and social services as the priority sectors.

The budget outlook also focuses on improved water and electricity supply; improvement of industrial parks; and improved tourism sector.

The minister boasted of declining budget’s donor dependency, saying under the envisaged budget, dependency will drop to 1.6 from the current budget’s 4.3 per cent.

She further explained that fund allocation in the coming fiscal year will be determined by the national priority areas and special government directives, especially on allowance improvement for civil servants in health and education sectors.

New employments and procurement of essential drugs in the country’s hospitals and health facilities also appear high on the coming budget’s priorities.

On the country’s last year economic performance, Dr Mkuya said the service sector was the best performer with 46 per cent contribution to Gross Domestic Product (GDP), a great improvement from the previous 35.5 per cent.

The service sector entails accommodation and food services; trade and repairs; transport and warehousing; information and communication; financial institutions and insurance; public administration; education; and health.

Agricultural sector–fishing, livestock, produce and forests–accounted for 26.3 per cent, a decline from 29.5 per cent in the previous year, the minister informed the house, noting that the industrial sector’s–sand mining, construction, electricity, gas and industrial manufacturing–contribution to GDP dropped from 24 to 19.9 per cent over the period under review.

THE East African Business Council (EABC) has lavished praise on President Samia Suluhu Hassan for allowing East Africans to invest in treasury bills and bonds security markets.

The apex body of the private sector in the region said in a statement that it appreciated such a bold and visionary move by Tanzania’s government, through the central bank on issuing the new Foreign Exchange Regulations 2022 under the Foreign Exchange Act Cap 271, which will attract and boost cross-border investments needed to generate capital and build the economy in Tanzania and the East African region at large.

According to EABC, the regulations permit residents of the East African Community (EAC) and Southern African Development Community (SADC), to invest in Treasury bills and bonds.

The regulations also permit a person residing in Tanzania to invest in the prescribed territory.

The EAC Monetary Union Protocol signed on November 30, 2013 provides for cooperation in monetary and fiscal matters to establish monetary stability and facilitate economic integration.

“The East African Business Council is dedicated to partnering with the Government of the United Republic of Tanzania to promote the free movement of capital and payments, as prescribed in the EAC Common Market Protocol (2010),” read part of the statement.

Treasury bills are short-term government securities, which are issued at discount and mature in less than a year. Treasury bills are used as a primary instrument for raising funds to meet temporary budget deficit and regulate money supply while treasury bonds are long-term debt instruments with a maturity period of more than one year and pay interest on semiannual basis. Treasury bonds issued by the Bank of Tanzania are in six maturities: 2, 5, 7, 10, 15 and 20 years. They are issued at fixed interest rate (coupon).

https://www.instagram.com/p/CevBm9yqknr/

Monetary Policy Committee Statement

THE FOREIGN EXCHANGE REGULATIONS, 2022