ACT Wazalendo says Zanzibar’s debt is unsustainable

ACT Wazalendo says Zanzibar’s debt is unsustainable

Unguja. The opposition party, ACT Wazalendo, has expressed grave concerns over Zanzibar’s escalating public debt, deeming it unsustainable and warning of its potential to ensnare citizens in a perpetual cycle of poverty.

Addressing a public rally at the Kilimahewa Grounds in Unguja, on Sunday June 9 the party’s Vice Chairman, Ismail Jussa Ladhu, voiced bewilderment at the government’s accumulation of debt totaling Sh1.1 trillion within just three years of the current administration.

Jussa highlighted the staggering increase in foreign debt, which surged from Sh155.8 billion in 2020 to the current amount, representing a 609.3 percent rise, with little tangible progress to show for it.

He specifically criticised the construction of markets in Mwanakwerekwe, Jumbi, and Chuini, noting that although these markets were intended to be under local government administration, they have been usurped by the central government.

According to him, the original cost estimates for these projects have ballooned significantly beyond the initial projections provided by the contractor.

“The Chuini market was initially budgeted at Sh31 billion, Mwanakwerekwe at Sh29 billion, and Jumbi at Sh13 billion. However, these costs have since escalated from a total of Sh75 billion to Sh102 billion,” remarked Jussa.

He further underscored discrepancies in the costs of construction materials, citing inflated prices compared to prevailing market rates.

For instance, while cement typically sells for Sh17,000 per bag in ordinary shops, the same product is priced at Sh23,000 per bag in these projects. Similarly, iron rods and bars, which typically cost Sh2.5 million per tonne in common hardware shops, are quoted at Sh3.2 million per tonne for these projects.

He was, however, full of praise for the Union President, Samia Suluhu Hassan, whom he said cares a lot for Zanzibar, citing a recent Sh427 billion loan to construct a new referral hospital at Mbinguni, Unguja, which was acquired during the president’s recent visit to South Korea.

Additionally, the party reiterated its readiness to assume governance in 2025, citing the departure of CCM from the principles espoused in the ASP manifesto established by the late Abeid Aman Karume.

Jussa emphasised the foundational importance of freedom, as articulated by Karume in the 1961 ASP election manifesto, which heralded the end of colonial and foreign rule.

Quoting provisions of the Zanzibar constitution, he lamented the failure of the current government to uphold the principles outlined therein, particularly regarding accountability to the public.

Despite the challenges, Jussa affirmed the party’s commitment to fulfilling its constitutional duties and holding the government accountable.

He asserted that the people of Zanzibar are now more discerning and steadfast in rejecting deception.

Regarding CCM’s deviation from ASP principles, Jussa underscored the loss of faith among citizens and emphasised Karume’s legacy of rapid development without incurring massive debts for personal gain.

Mansour Yussuf Himid, a member of the party’s Central Committee, echoed sentiments regarding the importance of equality and unity, emphasising the vision articulated by Maalim Seif against social divisions.

Himid criticised what he called CCM’s divisive tactics and highlighted the imperative of strong leadership principles to foster unity and progress.

Jussa and Himid urged for a return to the values of solidarity and fairness championed by Zanzibar’s elders, rejecting divisive politics and advocating for a future characterised by love, solidarity, and equitable opportunities for all citizens.

Original Media Source

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Britam half-year net profit hits Sh2bn on higher investment income
Tanzania Foreign Investment News
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Britam half-year net profit hits Sh2bn on higher investment income

Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.

The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.

“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.

“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”

The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.

Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.

The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.

Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.

The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.

“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.

Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.

Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.

CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.

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