TMRC bond attracts more local investors

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THE Tanzania Mortgage Refinance Company Limited (TMRC) has listed on the Dar es Salaam Stock Exchange (DSE) the 4th tranche bond of which all of its investors are locals.

Compared to the previous tranches, luring more Tanzanian investors brings more hope for increasing the liquidity in the capital market.

Moreover, retail investors scoped a big chunk with 69 per cent against 31 per cent of corporate investors during the public offering.

During the public offering which was opened on April 3, until April 24, the TMRC targeted to collect 10bn/- but it successfully oversubscribed by collecting 11.28bn/-, equivalent to 112.8 oversubscriptions.

Speaking at an event to grace the listing of the bond over the weekend, Commissioner for Debt at the Ministry of Finance and Planning, Mr Japhet Justin, pointed out that the move would give more opportunities to people to invest and list their shares on the DSE.

“When we raise funds for the mortgage refinancing, we should also consider how we can reach out to more people for mortgage loans,” Mr Justin challenged as he commended the TMRC for consistently listing the tranches of the bond on the DSE.

He argued that mortgage contribution to the Gross Domestic Product (GDP) was still minimal, below one per cent, hoping that as more people invest in the DSE the sector’s contribution would increase.

Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama, said the sale of the TMRC bond has been positive in the development of the capital market and finance sector at large in the country.

Mr Mkama noted that 69 per cent being retail investors shows a positive gesture in the implementation of the National Financial Inclusion Framework which intends to increase the participation of citizens in the formal financial sector, including the capital market.

He attributed the success to the ongoing public awareness campaigns over the benefits of investing in the capital market.

Mr Mkama further argued that the achievement was a result of the presence of an enabling environment offered by the government.

Commenting, the Acting Chief Executive Officer of the DSE, Ms Mary Mniwasa, said in the past 12 months the DSE has listed four bonds worth 135bn/-.

However, she said the demand was quite high for corporate bonds despite the global economic crunch.

CRDB to pay record Sh117.5 billion in total dividend to its shareholders

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Arusha. Shareholders of CRDB Bank Plc will get a total of Sh117.5 billion in dividends this year, thanks to the lender’s improved profitability in 2022. This represents a roughly 25 percent increase over the Sh94 billion total dividend the bank paid its shareholders last year from its 2021 net profit.

The bank’s shareholders will receive a dividend per share of Sh45 billion this year, up from last year’s Sh36 billion. “The rise in our profitability and hence our dividend is testament to the success of our five-year medium strategy that ran from 2018 to 2022,” CRDB Bank board chairman Ally Laay told shareholders here at the weekend.

At group level, CRDB Bank’s net profit rose by 31 percent last year to reach Sh351.4 billion, compared to Sh268.2 recorded in 2021.

He said CRDB Bank’s Burundi subsidiary exhibited a splendid performance last year when its net profit rose by about 80 percent to reach Sh23 billion from Sh12.8 billion in 2021.

“This means that the Burundi subsidiary alone contributed 7.0 percent to the Group’s profit,” he said, detailing a number of initiatives that the board and the management will undertake to grow the profits further in that country.

Recently, CRDB Bank was granted a licence by the central bank of the Democratic Republic of the Congo, officially known as Banque Central du Congo (BCC), to commence its operations there.
Similarly, CRDB Bank Group has also introduced an insurance subsidiary, CRDB Insurance Company (CIC), as well as its own foundation this year.

Speaking on the Bank’s performance, the Group CEO and Managing Director, Abdulmajid Nsekela, said in the financial year 2022, the efforts to strengthen income continued to yield positive results, with a growth of 28 percent in operating income to Sh497.7 billion.

The growth was fueled by an increase in net interest income, which grew by 15.5 percent year-on-year to Sh745.8 billion, driven by loan book growth. The Group closed the year with an NPL ratio of 2.8 percent, thus meeting the regulatory requirement of less than 5 percent.

The Bank also recorded strong balance sheet growth, with a year-on-year expansion of 32.0 percent from Sh8.8 trillion in 2021 to Sh11.6 trillion. The growth was contributed by a 26.4 percent increase in customer deposits, reaching Sh8.2 trillion from Sh6.5 trillion reported in 2021.

“Our efforts to enhance the efficiency of our operations continue to bear results with significant improvements in our cost of business as reflected in the cost-to-income ratio, which has improved significantly from 66.7 percent in 2018 to 49.4 percent in 2022,” he said.

CRDB Dividend Declaration Notice – Year 2022

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Notice is hereby given that dividend of TZS 45 per share in respect of the
financial year ending 31 December 2022 has been proposed by the Board of
Directors. Pursuant to this declaration, shareholders are advised to observe the
following:
Dividend Declaration Date:  28th April 2023
Trading of Shares cum Dividend: 28th April 2023 to 18th May 2023
Trading of Shares Ex Dividend: 19th May 2023 onwards
Closure of the Members Register: 23rd May 2023
Re – opening of the Register: 24th May 2023
Dividend Payment Date: 05th June 2023

Shareholders are requested to submit and update their payment details at the
Share Registry Office to enable the timely payment of their dividends.

Shares Registry Office
CRDB Head Quarters – 10th Floor
Cnr. Ali Hassan Mwinyi Road/Obama Drive, Dar es Salaam, Tanzania
E-mail – shares_unit@crdbbank.co.tz
Mob number: 0755 197 700
WhatsApp number: 0767 757 215

BY ORDER OF THE BOARD
John Rugambo
Company Secretary
28th April, 2023

SWALA OIL & GAS PLC TO COMMENCE LIQUIDATION PROCESS

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The announcement states that Swala Oil & Gas (Tanzania) plc will be placed in liquidation as per the resolution of its creditors representing approximately 75% of the Company’s liabilities.

 

CRDB Bank targets bigger pie of the blue economy proceeds in the Spice Islands

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Pemba. CRDB Bank yesterday opened a branch in Wete, Pemba as it seeks to play a role in supporting Zanzibar’s economic growth aspirations, particularly, through the government’s blue economy model.

Zanzibar President Hussein Ali Mwinyi graced the branch opening event, which also involved the distribution of over 272 motorcycles and 94 boats to economic undertakings owned by the youth and women groups in the Isles.

In February, this year, Zanzibar government and CRDB Bank signed an agreement that will have the latter disbursing Sh81.8 billion to stimulate economic activities in the Isles.

The package encompasses Sh60 billion that will be disbursed in form of interest-free loans to income-generating groups in Zanzibar while the remaining Sh21.8 billion will be allocated for improvement of the necessary infrastructure in the Isles that will enable the income-generating groups to conduct their undertakings in modern facilities.

CRDB Bank’s managing director Abdulmajid Nsekela said since February, the lender has already disbursed a total of Sh6.7 billion in interest-free loans to entrepreneurs in Zanzibar whereby Sh2.8 billion has gone to Pemba.

“I thank the government for entrusting us with the management of its Sh60 billion fund for loaning to SMEs under the blue economy model. This trust is what has led us to expand our branch network to Wete District in North Pemba,” Mr Nsekela said.

The beneficiaries include 6,178 women and 5,628 men.

The Wete Branch will offer both traditional and Islamic banking services.

The branch opening also saw the bank handing over Sh273.8 million to Shirikani, Umoja ni Nguvu and Mategemeo cooperative societies in the Isles.

In his remarks, Dr Mwinyi said the disbursement of the funds was in line with his campaign pledge of lifting lives of the people of Zanzibar through the blue economy model.

“We have promised and now we are implementing. As soon as I was sworn in, I asked banks to open more branches in Unguja and Pemba and CRDB Bank has been in the forefront of implementing my wish,” Dr Mwinyi said as he graced the opening CRDB’s Wete Branch in North Pemba along Mtemani Road at Sunda.

Cement firms on a roll despite delayed merger

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Dar es Salaam. Investors have maintained a bullish outlook for Tanga Cement Company Limited and Twiga Cement despite delays in the cement manufacturers’ merger plan, available data shows.

An analysis of the two firms’ performance at the Dar es Salaam Stock Exchange (DSE) shows that the two firms, which performed well during the first half of the year, have maintained that positive trend throughout the first three weeks of July.

Tanga Cement shares closed at Sh1,460 during the last day of trading in June but had since jumped to Sh1,680 as of Friday, July 22, 2022.

On the other hand, the share price of Twiga Cement – which trades as Tanzania Portland Cement Company Ltd (TPCC) – rose to Sh3,900 last week, from Sh3,720.

Analysts say with infrastructure improvement remaining a top priority for the government, investors remain optimistic that even if the merger fails, the two firms will continue to do well in the market.

“The way we see it is that Twiga Cement is already a mature company and it needs a room to breathe/expand going forward. Availability of quality limestone is a critical part in cement manufacturing and Tanga acquisition decision could not be more appropriate,” said the capital markets manager from Vertex International Securities Ltd, Mr Ahmed Nganya.

During the year ending December 2021, Twiga recorded a net profit of Sh88.48 billion while Tanga Cement reported an annual net profit of Sh3.7 billion. That was an encouraging comeback from a Sh2.1 billion annual loss it incurred in 2020.

The acquisition deal was announced last year where Scancem International DA (Scancem), a subsidiary of Heidelberg Cement AG, which owns Twiga Cement, and AfriSam Mauritius Investment Holdings Limited, owner of Tanga Cement, announced that they had finalized the terms upon which the former would acquire 68.33 percent of shareholding in Tanga Cement.

However since then the deal – which was slated to be finalised by the end of second quarter – has been delayed due to some regulatory issues.

“Twiga Cement is one of the perennial performers in terms of earnings and price momentum. Acquisition of Tanga would provide room for expansion due to Tanga’s vast and quality limestone resources. Currently, the acquisition has been delayed due to some regulatory hurdles but that is nothing to bother investors,” said Mr Nganya.

Last week, Twiga emerged as the top market mover at the DSE, accounting for nearly 70 percent of the week’s turnover of Sh1.85 billion.

CRDB voted Best Bank in Tanzania by EuroMoney

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Dar es Salaam. CRDB Bank Plc has been voted as the best bank in Tanzania, thanks to its transformative approach.

The bank was named  by Euromoney, a London-based monthly magazine that focuses on business and finance, it was revealed yesterday.

CRDB Bank Plc managing director, Mr Abdulmajid Nsekela said in Dar es Salaam yesterday that the award was in recognition of the bank’s transformation journey which focuses on creating sustained value, upping financial inclusion and building inclusive economic prosperity through innovative ways of delivering its products and services to clients.

“This award is proof that we are a leading bank in the country. It is also a sign of recognition to our transformative journey that has led to a sustainable growth of our bank,” said the CRDB boss.

Adding: “Our bank’s transformative journey has benefited our customers, investors and the country’s economy at large.”

Euromoney also recognised the bank’s digital revolution’s contribution, saying to a large extent it had bolstered financial inclusion.

“We have been in a forefront to help various sectors, agriculture and entrepreneurship, in particular,” he recounted.

Adding: “These sectors have been a catalyst for the country’s economic development.”

Mr Nsekela went further saying Euromoney recognised the bank for its pivotal role in facilitating strategic development projects implemented by the government and private sector.

He backed up his sentiments by citing examples of the Standard Gauge Railway (SGR) and Julius Nyerere Hydropower Station.

In 2004 CRDB became the first bank to be awarded the likes of the award by Euromoney.

“Winning the same award this year suggests that our bank keeps on growing day after day and we are proud that this has been recognised internationally,” said Mr Nsekela.

The bank was last year named by the Global Finance Journal as the best leading innovative bank in the country’s banking sector.

During the same year, the bank was awarded the 2021 ‘Quality Choice Prize’ by the European Society for Quality Research (ESQR)

Kenya Airways, South Africa carrier sign codeshare deal

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South African Airways (SAA) has inked a codeshare agreement with Kenya Airways (KQ) on flights to and from their home countries in a bid to increase their reach.
The deal, which became effective immediately, will see each airline sell, under its own code, flights operated by each other while travellers will combine flight segments and baggage on a single ticket.
The pact will also give passengers travelling out of South Africa more options to travel to African destinations, including Nairobi, Dar es Salaam, Entebbe, Mombasa and Kisumu.
KQ passengers, on the other hand, will have more choices for travel into Southern Africa, including Cape Town, Durban, and Harare immediately.
The growth of the partnership, the two airlines said, will see the addition of Zanzibar, Kilimanjaro, Juba, Douala, Lusaka, Ghana and Nigeria, subject to government approval as the two carriers seek to offer more options for travellers within Africa.
“We are very pleased to implement the codeshare with SAA, which offers our shared customers more options and flight combinations,’’ Allan Kilavuka, Kenya Airways CEO and group managing director, said on Tuesday.
“We are looking forward to introducing Kenya Airways customers to our award-winning service, and to working closely with Kenya Airways as our partnership will improve the connections between our respective networks,” says Prof John Lamola, interim CEO of South African Airways.
KQ is a member of the Sky Team — the second-largest airline network — while the South African carrier belongs to Star Alliance, so far the largest of the three major aviation clubs with a membership of 28 airlines.
The two carriers signed a strategic partnership framework in South Africa last November, which will see them eventually form a Pan-African carrier amid common longstanding financial woes exacerbated by the Covid-19 pandemic, among other problems.
It is expected that the partnership will improve the financial viability of the two airlines currently struggling to stay afloat.

Tanzania: NMB Eyes Three Key Sectors With 9 Pc Interest

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NMB Bank has urged farmers, fishermen and livestock keepers to tap loan opportunities offered by the lender after slashing interest rates to 9 per cent from May this year.

This was said by the NMB official responsible for Control and Implementation, Oscar Nyirenda said here over the weekend during the meeting with members of the business club from Lindi and Mtwara.

“Farmers, fishermen and livestock keepers have a reason to increase borrowing and expand their economic activities after NMB cut down lending cost to 9 per cent from over 10 per cent last year,” he said.

He added, “The reduction of lending rates to single digit is the implementation of the plea made by President Samia Suluhu Hassan last year seeking commercial lenders to cut down cost of lending to give relief to borrowers,”

He said also that special arrangement for interest rates will be made for small scale business people borrowing between 500,000/- and 5m/- when they meet the criteria.

He said before President Samia’s call for commercial lenders to reduce interest rates, NMB had already slashed it to 10 per cent last year and heeding to the Head of the State plea, the lender cut it down again to 9 per cent.

The NMB Southern Zone Manager Janeth Shango said that NMB is ready to serve and provide business people with loans and financial education that are necessary in expanding their business.

Read the original article on Daily News.