Capital markets investment value up by 23pc

DAR ES SALAAM: CAPITAL markets investment value has increased by 23.2 per cent as of last month compared to the amount recorded in April last year.

New records reveal that the investment value has reached 43.4tri/- as of April this year compared to 35.2tri/- recorded during the corresponding period previous year, according to Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama.

Mr Mkama attributed the growth to the implementation of government’s plans and strategies which has brought positive results in the development of the financial sector, especially the capital markets.

Mr Mkama further noted that sales of shares and bonds have also gone up by 64.5 per cent, hence reaching 4.2tri/- by April this year from 2.5tri/- during the same period last year.

Also Read: Capital markets investment value up 31pc

On the other hand, the value of collective investment schemes has also increased by 44.7 per cent, reaching 2.1tri/- in the past one year from 1.4tri/- recorded in April, 2023. Mr Mkama stated this yesterday in Dar es Salaam at an event to officiate at the launching of the ‘Timiza Fund’.

The Timiza Fund is aimed at enabling small, medium and large investors to collectively mobilise funds for investing and benefit from the opportunities in financial sector, especially capital markets.

The Fund is run by Zan Securities Limited, which is the Fund Manager, while Mwanga Hakika bank is the custodian.

Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama, said specific objectives of the Fund is to empower Tanzanians from different cadres, including the youth, women and special groups to benefit from the financial sector, building culture of saving and investing among Tanzanians to enable citizens to participate in economy.

Mr Mkama stated that in ensuring the objectives of the Fund are met, the CMSA has approved lowering the amount for participation in this Fund from 1m/- to 10,000/- only.

“This is a very important step for encouraging participation of investors from different cadres including lowincome citizens,” he said.

According to the policy and guidelines for investment in Timiza Fund, the monies to be mobilised from the investors will be invested in capital markets, including Listed Equities, Treasury Bonds and Corporate Bonds.

Tanzania drums for more low-income-centred mutual funds

DAR ES SALAAM: THE government yesterday launched a mutual fund that targets the low-income bracket, a move envisaged to accelerate financial inclusion in the country.

The collective scheme, Timiza Fund, introduced by Zan Securities, one of the leading stock brokerage firms, is the first private sector mutual fund and the third in the market.

The sector is led by UTT-Amis, which is fully owned by the government.

The fund introduction by a private player symbolises the government’s tireless efforts to widen the participation of society in financial products, making the sector equally accessible to all walks of life.

“This fund will help elevate the degree of financial inclusion in the country by motivating numerous citizens, especially income earners, to engage in capital market investments,” Deputy Minister for Industry and Trade Exaud Kigahe said on behalf of Planning and Investment Minister, Prof Kitila Mkumbo.

“Because the fund’s unit is merely 100/- for a minimum of 100 units… this comes to a minimum investment of 10,000/- which is affordable for the majority,” Mr Kigahe said while gracing the launching ceremony.

Also read: UTT fund value balloons by 50pc in one year 

He said the fund, aimed to raise 10bn/-, is in line with the policies and measures taken by the government to include citizens in investment in economic activities centered on improving their income, especially bodaboda riders and food vendors (mama ntilie).

Zan Securities Chief Executive Officer Raphael Masumbuko said that opportunities for economic progress should not just be accessible to a select few but should instead be open to everyone, regardless of financial status.

“Collective investment plays an important role in making the investment belong to all by providing a platform where people can pool their resources together to obtain a controlled concentration of assets,” Mr Masumbuko said.

The profile of the Timiza scheme is a balanced portfolio investment in both fixed-income securities and listed equities to reduce potential volatility.

The fixed-income securities will comprise at least 0-100 per cent of the portfolio, while 0-50 per cent will be in listed equities.

“The biggest advantage of collective investment is its cooperation as it accommodates both experienced and inexperienced investors,” he said.

Timiza units are open-ended with exit and entry loads after the initial sale, depending on the net asset value (NAV) per unit at that point.

Capital Market and Securities Authority (CMSA) Chief Executive Officer Mr Nicodemus Mkama said the specific objectives of the Fund are to empower Tanzanians from different cadres, including the youth, women, and special groups, to benefit from the financial sector, build a culture of saving and investing among Tanzanians to enable citizens to participate in the economy.

“This is a very important step for encouraging the participation of investors from different cadres, including low-income citizens,” he said.

Mr Mkama stated that in ensuring the objectives of the Fund are met, the CMSA has approved lowering the amount for participation in this Fund from 1.0m/- to 10,000/- only.

Mwanga Hakika Bank’s Managing Director Mr Jagjit Singh said as the custodian bank, they will play their role with the highest level of transparency by practicing good corporate governance and ensuring strict compliance with applicable laws and regulations.

DSE out to foster investment literacy

DAR ES SALAAM: DAR ES SALAAM Stock Exchange (DSE) yesterday staged a research challenge aimed at fostering financial and investment literacy among students from higher learning institutions.

The ‘CFA Institute Research Challenge 2023/2024 local competition’ supervised by the CFA Society East Africa intends to empower youth on various financial matters.

The DSE’s Acting Director, Ms Mary Mniwasa, said the event represents a unique opportunity to witness the youth competency aspiring financial professionals who have decided on the principles of integrity, professionalism, and ethical conduct.

“The challenge not only showcases youth’s analytical skills but also discloses the importance of ethics in the decision-making in an ever-evolving Eco finance,” Ms Mniwasa told reporters.

The stock exchange is committed to ensure financial literacy among Tanzanians through encouraging innovation.
The competition involved teams from Ardhi University, Mzumbe University, the University of Dar es Salaam (UDSM), and the University of Dodoma (UDOM).

CFA Institute Research Challenge is an annual global competition that connects university students with investment professionals from within the CFA Society network.
The CFA Society Administrator for Tanzania, Ms Lucy Shantiwa, said the challenge is focused on increasing the financial awareness and investment matters to higher learning students.

“We involve students for at least four to five months. They are allocated companies to conduct analysis and this year DSE has been picked as a case study,” said MS Shantiwa.

Additionally, Iddi Ernest, a student from UDOM said the challenge will enable them to analyse investment issues and give them a wide scope to know how to make a profit through investment, especially in the stock market.

The competition provides students with hands-on mentoring and intensive training in financial analysis and ethics and tests participants’ analytical, valuation, reporting writing, and presentation skills.

Local-level competitions are organised and judged by CFA Society members and volunteers who function as local hosts.

The winning university team from each local competition advances to one of the three regional competitions.

Maendeleo profit increases threefold in Q4

TANZANIA: MAENDELEO Bank’s net profit increased three times in last year’s fourth quarter, attributed to a non-interest income raise.

The bank’s financial statement released recently displayed net profit soared to 776m/- in the three months to December last year from 258m/- in a comparative quarter in 2022.

The lender, with more than 124bn/- of assets, until last December, has a robust performance in profit attributed to the positive growth in non-interest income.

According to the report, non-interest income increased by 78 per cent to 916m/- from 514 m/- posted in 2022, with foreign currency dealings and fees and commissions being the drivers.

Foreign currency dealings and translation registered an 18m/- gain from the loss line of 2.0m/- posted in 2022 while fees and commissions increased by 39.2 per cent to 546m/- from 392m/-.

Despite the increase in non-interest income, the bank’s net interest income slightly went down in Q4.

The bank’s interest income, year-on-year decreased by 7.4 per cent to 2.65bn/- last year from 2.87bn/- despite the increase in the loan portfolio.

Until the end of last year, Maendeleo Bank managed to issue loans valued over 74bn/- from 70bn/- registered in Q3 ended in September last year.

Additionally, the lender’s customer deposits grew by 5.8 per cent to 83.4bn/- in Q4 from 78.8bn/-posted at the end Q3.

Non-performing loans (NPLs) significantly increased by 8.0 per cent to 3.76bn/- from 3.48bn/- posted last September.

The lender maintained the NPLs ratio until the end of December, standing at 5.0 per cent, matching with the Bank of Tanzania (BoT)’s threshold of 5.0 per cent.

Furthermore, the bank’s non-interest expenses have increased to 2.27bn/- from 2.01bn/- posted in a similar period of the previous year, pushed up by increased salaries and benefits.

According to the statement, salaries and benefits increased by 19.8 per cent to 997m/- from 832m/- posted in a similar period in 2022.

The increment is highly pushed by the increased number of staff to 119 until the end of December last year 114 in a similar period in a previous year.

Moreover, the bank’s number of branches increased to 30 from 10 recorded in 2022.

TBL appoints first female managing director in company’s 90-year history

TANZANIA: Michelle Kilpin has been selected as the new Managing Director of Tanzania Breweries Limited (TBL), marking the first time in the company’s 90-year history that a woman has held this top position.

She succeeds Jose Moran, who is transitioning to a regional portfolio within the continent.

“TBL is honored to welcome Ms. Michelle Kilpin to the helm as our first-ever female Managing Director in its 90-year company history. Ms. Kilpin brings a wealth of invaluable experience, with over 19 years at our parent company, ABInBev, where she has consistently demonstrated exceptional expertise and achieved remarkable milestones across the African continent,” stated TBL in a public announcement published in Friday’s Daily News.

During her tenure as Managing Director of Zambia Breweries Limited, Ms. Kilpin’s leadership played a pivotal role in achieving topline growth and market share within the industry, according to TBL.

“As we embark on this new chapter with Ms. Kilpin, we encourage all stakeholders to join us in extending a warm and enthusiastic welcome to her as she becomes an integral part of the TBL family. Karibu Sana! Thank you for your continued support and commitment to the success of Tanzania Breweries Limited,” the statement concluded.

 

DSE stock value up by 68pc

DAR ES SALAAM: THE stock value in the Dar es Salaam Stock Exchange (DSE) increased by 68 per cent last year, thanks to supportive government monetary policy and enhanced financial inclusion.

The stock value rose to 225tri/- in 2023 from 134bn/- recorded in the previous year, marking a robust performance and resilience in the stock market.

Additionally, the value of bonds also increased by 42 per cent to 3.65tri/- compared to 2.56tri/- in the prior year.

This increase can be attributed to various factors, including proper government monetary policy that encourages more investment in the stock market.

Another contributing factor is increased financial inclusion, which allows direct participation in the market through the DSE mobile platform ‘DSE Hisa Kisangani’ without the need for stockbrokers.

Emmanuel Nyalali, DSE’s Director of Trading and Markets, stated that the performance reflects the company’s initiatives to enhance the investment mindset through investment career programs, leading to positive results.

“The significant growth in the listing of new securities on the market, along with the sales of securities and a significant increase in income compared to the previous year, demonstrates the stability and attractiveness of the market to investors,” Nyalali told reporters yesterday.

He also mentioned that last year, the market experienced a positive trend in sales and attractive growth in the value of government bonds (treasury bonds) and corporate bonds, indicating investor confidence in the financial sector as a whole and the capital markets.

Despite the healthy performance of shares in the DSE last year, no new companies were listed on the market. However, the Tanzania Chambers of Commerce, Industry, and Agriculture (TCCIA) Investment Company listed its new shares through a ‘right issue,’ increasing its capital by selling shares to its shareholders.

Through this, the TCCIA investment managed to register a capital worth 10.58 billion TZS last year.

Nyalali informed reporters that DSE listed three new corporate bonds worth 579.42bn/- in the market.

Block-trading drought affects DSE turnover

DAR ES SALAAM: DAR ES SALAAM Stock Exchange (DSE) market turnover has declined by 23 per cent notably due to reduced activities in the pre-arranged boards.

The bourse turnover went down to 1.4bn/- for the seven days ending last Friday from 1.82bn/- of the previous week.

Zan Securities said in its weekly market wrap-up report that the market activities dropped, notably due to reduced activities in the pre-arranged boards as investors held positions in anticipation of upcoming earnings results.

“As the earnings season kicks in, traders and investors are keenly watching for the [last year’s] fourth-quarter results of CRDB and NMB, scheduled for release in the week beginning [today],” it said in the report.

Orbit Securities said in its weekly synopsis that at the moment there was no significant fundamental news influencing the market.

“However,” the report said, “the [this] week may bring changes, especially as banking stocks are anticipated to release their 2023 financial results,” Orbit report said.

As a result, the market capitalisation exhibited a mixed performance, witnessing a 2.28 per cent drop in total market capitalisation and a marginal 0.002 per cent increase in domestic market capitalisation.

Zan said the counters that drove significant trading activity throughout the week included CRDB, NMB and TCCL/Simba cement contributing 49.6 per cent, 33.18 per cent, and 7.16 per cent to the total market turnover, respectively.

“Domestic stocks showed a bullish trend, with two counters experiencing positive price movements, DCB Bank gained the most,” Zan said.

DCB ended the trading week up by 3.85 per cent to 135/- per share. DSE increased by 1.11 per cent closing the week at 1,820/- per share.

On the flip side, TICL was the sole domestic counter to experience a decline dropped by 2.50 per cent to 195/- per share.

In terms of market capitalisation, there was a significant decrease of 2.28 per cent in the total market capitalisation to settle at 14.215tri/-. Conversely, the domestic market capitalisation recorded a slight increase of 0.002 per cent to 11.361tri/-.

“Domestic stocks experienced an upswing, contributing to the growth in domestic market capitalisation,” Zan’s report said.

However, a sell-off in cross-listed stocks like EABL, JHL, NMG and KCB led to a substantial 2.28 per cent decline in total market capitalisation.

UTT fund value balloons by 50pc in one year

TANZANIA: THE UTT AMIS fund value has increased by 54 per cent in one year, attributed to improved investor’s confidence in the financial markets.

In the report released on Sunday during the 15th Annual General Meeting (AGM), the value soared to 1.53tri/- at the end of June from 996.5bn/- of the same period last year, an increase of some 538.9bn/-.

“The performance of the funds during the period has continued to be good, and the investor’s profits also increased,” said Mr Simon Migangala, UTT’s Managing Director.

Currently, UTT AMIS is supervising six funds including Umoja, Wekeza Maisha, Watoto, Jikimu, Liquid and Bond.

The investor’s profits climbed up and surpassed the performance benchmark. Annual profit increased by 11.2 per cent compared to 12.6 per cent of the last year and the fund value soared to 320bn/- until June from 289bn/- in a similar period last year.

Additionally, the statement highlighted the positive performance of the local companies in the stock market as per the bourse share indices.

According to Tanzania Share Index (TSI) which measures the performance of local listed firms on Dar es Salaam Stock Exchange (DSE), the index increased from 3,928.5 points to 4,091.8 points a year to June.

The report showed that the Jikimu fund recorded a 14.0 per cent increase compared to 7.6 per cent which is the fund’s benchmark, while the Umoja fund registered 11.2 per cent and Wekeza Maisha increased by 12.5 per cent.

Other funds’ profits include Liquid, which increased by 12.5 per cent, and bond 12.3 per cent against their 9.7 per cent benchmark.

Speaking on the five-year strategic plan which ends next June, Mr Migangala said the UTT AMIS is optimistic to focus on the use of technology to provide services to investors and be able to access financial services digitally.

The report showed that until June, the fund managed to connect its financial system with numerous banks including CRDB, NMB, NBC and Stanbic.

The fund said it is in the process of connecting with more banks such as Absa, Exim, KCB, People’s Bank of Zanzibar, DCB and UBA.

TCCIA Investment to raise over 10bn/- through shares

DAR ES SALAAM:THE TCCIA Investment Ltd on Thursday launched an initial rights offering for selling over 72.9 million shares targeting to raise 10.58bn/- by December 1, this year.

The funds earned from the sale will enable the TCCIA Investment Company to beef up its investment in the capital markets.

This will include investment in corporate shares and bonds in the country and East African Community (EAC) as well as Southern African Development Cooperation (SADC).

“It will enable the company to realise its strategic goals of boosting value of shareholders’ investment,” said Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Nicodemus Mkama during the launching event.

Mr Mkama said the capital markets drive economic growth by enabling availability of financial resources and strengthening good governance and bringing productivity to the company and institution.

He said the authority will continue building capacity by ensuring that an enabling and participatory environment is in place.

This is meant to enable institutions in the public and private sector to use capital markets for securing funds for implementation of development projects, green bonds, blue bonds, social bonds and subnational bonds.

He explained that on November 3, this year, the CMSA endorsed the TCCIA Investment Ltd to sell its  72,957,660 shares on initial rights offering to its shareholders at a price of 145 per each share.

The approval was issued after the CMSA was satisfied that the company met conditions under the Capitalisation and Right Issues),

TPCC | Draft Notice of EGM