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

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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

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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

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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

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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

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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

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TPCC | EGM Notice

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TPCC Notice to Shareholders

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Tanzania’s NMB Bank opens $400 mln green bond program

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Reuters

Tanzania’s NMB Bank (NMB.TZ) is launching a 10 year multi currency medium term bond of 1 trillion Tanzanian shillings ($400 million) under a green bonds initiative, it said on Monday.

African nations and businesses have been vying to increase their share of climate finance, to combat climate change and invest in sustainable development.

The so-called green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.

NMB kicked off the sale of the first tranche of the sustainable note, dubbed “Jamii Bond”, to raise 75 billion shillings with the option of raising an extra 25 billion shillings if there is sufficient demand, it said.

The tranche will also raise $10 million from offshore private investors, NMB said, with the option of taking an extra $5 million depending on investor demand.

The cash will be used to finance environmental and social projects, NMB said, without providing details.

The bond will be for a period of three years and it will come with an annual interest rate of 9.5% to be paid quarterly, NMB said, and it will be on sale until Oct. 27.

NMB’s green bond issuance has been supported by FSD Africa, an organisation that helps to deepen financial inclusion on the continent.

NMB’s move follows that of another Tanzanian commercial bank, CRDB Bank (CRDB.TZ), which announced its own $300 million green bond issuance program last month.

Tanga cement narrows Q2 losses to 2.1bn/-

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DAR ES SALAAM: Tanga Cement Company reported a 2.1bn/- loss in the second quarter of 2023, a slight improvement from 2.4bn/- loss before tax made in a similar period last year.

The Dar es Salaam Stock Exchange (DSE) listed cement maker which trades under the Simba Cement Brand, posted a marginal decline of five per cent in sales revenue, reaching 55bn/- down from 58.3bn/- recorded during the second quarter of 2022, according to its financial statement for the second quarter of 2023.

Despite a decline in sales revenue, the company’s gross profit showed an increase of 25 per cent to 14.1bn/- up from 11.2bn/- attained in the equivalent period last year.

The increase in gross profit has been credited to the implementation of cost containment strategies.

However, the financial statement shows interest expense increased by 61.35 per cent from 3.9bn/- in the second quarter of 2022 to 6.3bn/- in the second quarter of 2023.

The cement maker which is a subsidiary of AfriSam (Mauritius) Investment Holdings Limited with production facilities in Pongwe area in Tanga recorded a significant increase in cash generated from trading activities and net cash flows from operations, attributed to improvements in gross margin and EBITDA.

Cash generated from trading activities surged by 438 per cent from 1.7bn/- in June 2022 to 9.0bn/- in June 2023. Net cash flows from operations increased by 558 per cent from 1.4bn/- recorded in June 2022 to 9.0bn/- in June 2023.

This increase was attributed to an improvement in the gross margin and EBITDA of 6 per cent and 63 per cent respectively as a result of management’s adept execution of cost management and cash‑ flow enhancement strategies.

Tanga Cement is optimistic about future prospects for growth due to anticipated increase in cement demand from major infrastructural development projects across the country which include the East African Crude Oil Pipeline Project (EACOP), the standard gauge railway and Dar es Salaam and Tanga Port upgrade.

The Group is optimistic about the positive impact of infrastructure development under government’s Development Vision 2025 and lauds the government’s initiatives to counteract oil price increases and scarcity of major foreign currencies.

The Chairman of the Board of Directors, Patrick Rutabanzibwa said in the statement that the growth outlook is tied to the growth in cement demand in Tanzania’s construction industry and opportunities available in the regional market where Tanzania is a significant player East African construction market.

“The Group is confident with the initiatives that the government has taken to combat the effects of increase in oil prices as well as the impact of the scarcity of major foreign currencies and commits to working together with the government in growing the economy,” said Mr Rutabanzibwa in the statement.

Tanga Cement Company is set to be acquired by Scancem International DA (Scancem), a subsidiary of Heidelberg Cement AG, which owns Twiga Cement, another major cement maker in Tanzania.

Scancem International DA signed an agreement to acquire a 68.33 per cent stake in Tanga Cement Public Limited Company from AfriSam (South Africa) (Pty) Ltd.

However the planned acquisition is subject to continuing legal twists after a tribunal judge nullified Fair Competition Committee (FCC) decision to sanction the merger at a second attempt in February this year.

The FCC approved the Scancem International DA’s acquisition of AfriSam’s Tanga Cement following a second application after the Fair Competition Tribunal (FCT) had blocked the initial application following an appeal by the now deregistered Chalinze Cement and Consumer Advocate Society.