Dar es Salaam. Tanzania’s favourable business environment and recent economic reforms have attracted eight investors from Angola, who plan to invest in key sectors such as agriculture, technology, mining, and infrastructure.
Despite over a decade of diplomatic relations between the two nations, only one project has been registered with the Tanzania Investment Centre (TIC).
This situation has led a delegation of Angolan investors to visit the country to explore potential business opportunities.
“Currently, there is only one registered project, but the government has improved investment policies and provided numerous incentives for investors. This is why businesspeople from Angola see the opportunity to invest in Tanzania, expecting the number of projects to increase,” said Mr Felix John, the Investment Promotion Manager at TIC.
On Monday, February 3, Mr John revealed that the delegation consists of senior executives from leading Angolan companies, who have already begun discussions with local entrepreneurs. This highlights Tanzania’s growing potential as an investment destination.
Mr Ariclene Gomes, a board executive of TEGMA-SU LDA, expressed his enthusiasm for the initiative.“We are delighted to be part of this delegation aimed at fostering economic growth. We arrived on Friday and have already held discussions with the Ministry of Foreign Affairs.”
He noted that his company, which specialises in chip manufacturing, sees significant potential in Tanzania’s agriculture and agro-processing industries. Additionally, he mentioned that the Angolan government is actively promoting investment in tourism, and the delegation is eager to learn from their Tanzanian counterparts.
“We are here to collaborate with Tanzanian companies and contribute to economic growth,” Mr Gomes stated.
He further emphasized the need for greater business engagement between the two countries.
“The fact that only one company has been registered with TIC reflects a minimal impact, and we aim to change that. We are prepared to make a significant contribution by investing in tourism, hospitality, construction, and agriculture.,” he said
We appreciate the warm welcome and hope to commence investments within the year.”
With ongoing improvements in Tanzania’s investment climate, officials anticipate that more Angolan businesses will follow suit, fostering stronger economic ties between the two nations.
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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.
