Kenyan banks post 75pc profit growth in Tanzania

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In: Tanzania Foreign Investment News

Subsidiaries of Kenyan banks have posted a 74.7 percent jump in pre-tax earnings in Tanzania to TSh91.4 billion (Sh4.36 billion at the current exchange rate) for the half year ended June 2024, highlighting the growing influence of regional banking business.

Data from the Bank of Tanzania (BoT) shows that the latest pre-tax profit was a jump from TSh52.3 billion (Sh2.49 billion) in a similar period last year.

KCB Bank Tanzania topped the profitability chart among Kenyan banks in a market that also includes Equity Bank Tanzania, DTB Tanzania, NCBA Tanzania and I&M Tanzania.

All five banks, which have 76 branches in Tanzania, recorded double-digit percentage growth in pre-tax profits, increasing the share of subsidiary profits in the parent companies’ profits. The TSh91.4 billion profit at the current exchange rate is 77.3 percent of the Sh5.64 billion that Kenyan banks earned from the Tanzanian market in the financial year ended December 2023.

Kenyan banks have enjoyed higher profits in Tanzania on the back of cooling inflation and improving asset quality. Headline inflation stood at 3.1 percent in May, while the non-performing loans (NPLs) ratio stood at 4.4 percent in May 2024, below the five percent that the BoT classifies as a “tolerable level”.

The NPL ratio has been on a downward trend and inflation is cooling, stimulating credit growth. This contrasts with Kenya, where loan defaults have risen, pushing the NPL ratio above 15 percent.

In the half year under review, KCB led the way with pre-tax profits up 51 percent to TSh38.7 billion (Sh1.84 billion) in a market where it operates 16 branches.

DTB Tanzania followed with a tripling of pre-tax profits to TSh25.2 billion (Sh1.2 billion), helped by its 29 branches. The tripling of profits from TSh7.73 billion (Sh367.9 million) helped DTB overtake Equity to become the second most profitable subsidiary in Tanzania.

Equity Bank Tanzania posted a 12 percent increase in pre-tax profits to TSh14.01 billion (Sh666.8 million) as I&M Bank Tanzania’s profits jumped 4.8 times to TSh7.3 billion (Sh347.5 million).

The more than fourfold increase in I&M’s profits in Tanzania saw it overtake NCBA Tanzania, whose pre-tax profits rose 13 percent to TSh6.15 billion (Sh292.7 million).

The BoT said last month that it expected credit to the private sector to remain strong on the back of improving global and domestic economic conditions.

On an annual basis, private sector credit growth averaged 16.4 percent in the second quarter of 2024, down from 17.1 percent in the previous quarter.

Kenyan banks have benefited from growing profits in regional markets including Tanzania, Uganda, Burundi, DRC Congo, Rwanda, Mauritius and South Sudan.

Data from the Central Bank of Kenya shows that profit before tax from regional subsidiaries stood at Sh66.13 billion in the financial year ended December 31, more than double the Sh32.51 billion reported in the previous year.

The DRC was the biggest contributor with a pre-tax profit of Sh30 billion, followed by Rwanda (Sh13.8 billion), Uganda (Sh8.9 billion), Tanzania (Sh5.64 billion), South Sudan (Sh4.4 billion), Mauritius (Sh2.24 billion) and Burundi (Sh1 billion).

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Tanzania: VP Calls for Environmental Protection for Sustainable Water Supply

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In: Tanzania Foreign Investment News

VICE-President Dr Philip Mpango has urged Tanzanians to conserve the environment and protect the nature to ensure availability and reliable water services.

Dr Mpango made the call when he addressed residents of Bahi District after laying the foundation stone for the Ibihwa Water Project. The VP also urged the residents of Mpwapwa District to protect forests and plant trees. The VP is on a working visit in Dodoma Region.

While in Bahi District, Dr Mpango asked the Regional Commissioner and District Commissioners to work closely with people to ensure they plant water friendly trees, particularly during the coming rainy season.

The VP asked the Irrigation Commission to collaborate with the Ministry of Livestock and Fisheries to construct water harvesting dams in the region for irrigation, livestock and human needs.

Dr Mpango directed the Ministry of Water to ensure the completion of the remaining 14 per cent of the Ibihwa Water Project by the end of September 2024.

He emphasised the importance of extending the project’s water supply to Bahi town to address the current challenge of consuming salty water.

The VP added that there must be close monitoring of payments to the contractor, saying the money must be released based on the pace of the project implementation.

He said that the Ibihwa Water Project is a realisation of the ruling Chama Cha Mapinduzi (CCM) 2020-2025 election manifesto that aims at guaranteeing availability of clean and safe water. According to the manifesto, 85 per cent of rural residents and 95 per cent of urban residents must access clean and safe water by 2025.

In another development, the Vice-President presented 20 Borani cattle to livestock farmers in Bahi District, donated by the government through the Ministry of Livestock and Fisheries, with the objective of improving livestock farming and the value of livestock products.

Dr Mpango commended the Ministry of Livestock and Fisheries for this initiative, which is expected to increase beef production from the current 80-120 kilogrammes per farmer to 150-200 kilogrammes.

“I urge farmers to embrace modern farming practices to meet national and international market demands for their produces,” said Dr Mpango.

ALSO READ: Why Samia’s clean energy agenda is relief to women, environment

The Minister for Water, Jumaa Aweso, assured the VP that his ministry will diligently oversee the Ibihwa project to ensure its completion by September 30, 2024.

The Ibihwa Water Project worth 709m/-, is expected to address water challenges faced by over 11,000 residents in the area.

In Mpwapwa, Dr Mpango urged the residents to preserve the forest on Wotto Mountain, saying all efforts must be applied to protect the nature for the betterment of the future generation. He ordered the Minister in the Vice-President’s Office (Union and Environment) in collaboration with the Minister for Natural Resources and Tourism to visit the area and make sure they set a strategy to stop the ongoing environmental degradation.

Moreover, the VP ordered the Ministry for Finance to release funds for the construction of a Vocation Training College under the Vocation Education and Training Authority (VETA) in the area.

He said the ministry must give priority to the project since it is designed to benefit a number of residents, especially young people in the area. The project is set to cost 1.68bn/- upon its completion.

On infrastructure, the VP ordered the Ministry of Works through the Tanzania National Roads Agency (TANROADS) to finalise procedures to sign a contract for the construction of the 46.5km Mpwapwa-Kibakwe road at a tarmac level and finalise the feasibility study for the 84km Kibakwe- Chipopolo.

Dr Mpango also ordered TANROADS to ensure the completion of 32km Kongwa-Mpwapwa road.

While in Mpwapwa District, Dr Mpango ordered the Ministry of Water to take water well drilling rig to ensure availability of water to all villages before September 15, this year.

On education, the VP urged parents and guardians to ensure they enrol their children to school, saying the government is currently offering fee free education and thus there is no reason for denying education to the young generation.

“We need educated people to develop this nation, you should therefore register your children to school,” he noted.

Furthermore, Dr Mpango asked Tanzanians to participate fully in the forthcoming local government election in November, this year.

Source: allafrica.com

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DP World kuokoa Sh1.6 trilioni hadi Desemba

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In: Tanzania Foreign Investment News

Dar es Salaam. Imeelezwa kutokana na kuanza kazi kwa Kampuni ya DP World katika Bandari ya Dar es Salaam huenda Dola za Marekani 600 milioni (Sh1.62 trilioni) zikaokolewa katika uchumi wa Tanzania, kutokana na kuondolewa kwa tozo ya uchelewaji wa meli.

Fedha hizo zitakazookolewa ni zile Dola za Marekani 1,000 zilizokuwa zikitozwa kwa kila kontena lililokuwa likishushwa katika bandari ya Dar es salaam.

Mkurugenzi Mkuu wa Mamlaka ya Usimamizi wa Bandari Tanzania (TPA), Plasduce Mbossa akizungumza leo Jumanne, Agosti 20, 2024 na Mwananchi amesema kwa kawaida meli zilizokuwa zinakuja Dar es Salaam zilikuwa zikitozwa gharama ya msongamano (Peak season) ambayo ilikuwa Dola 1,000 (Sh2.7 milioni) katika kila kontena kwa sababu ya kusubiri kwa muda mrefu mzigo kupakuliwa, lakini sasa imeondolewa.

“Sasa hivi muda wa meli kukaa umepungua sasa kutokana na hilo, wameondoa hiyo tozo mfano wakati unaagiza kontena badala ya kulipa Dola 4,500 sasa hivi utalipa Dola 3,500,” amesema Mbossa.

Mbossa amesema kampuni ya meli ya MSC ndiyo ya kwanza kuondoa tozo hizo na kufanya gharama za meli kwa bandari za Mombasa na Dar es Salaam kuwa sawa: “Hatua hiyo imesababisha kampuni nyingine za meli kuwa katika presha ya kuondoa hiyo Dola 1,000 kama ilivyofanywa na MSC.”

“Ukiangalia kwa mwaka tunahudumia kontena milioni 1.2, sasa ukichukua nusu ya mwaka uliobakia na kuondoa Dola 1,000. Tumeokoa kama nchi kwa sababu leo ukitaka kuagiza mzigo, ili kupata dola lazima ukanunue kwenye maduka ya kubadilisha fedha za kigeni ambao wanazinunua Benki Kuu ya Tanzania (BoT).”

“Kwa hiyo tunachukua akiba yetu ya dola tunakwenda kulipa kampuni za meli, ndiyo maana tunasema fedha iliyookolewa itakuwa Dola milioni 600, lakini pia meli ilikuwa ikisubiria kwa siku 28 sasa imeshuka hadi siku 10,” amesema.

Mbossa amesema hivi sasa meli ya makasha inaaka katika gati siku moja hadi tatu kulingana na mzigo, kisha kuondoka, akisema hatua hiyo imeleta maendeleo makubwa katika utoaji huduma katika bandari ya Dar es Salaam.

Aidha kupungua kwa gharama hizo ni kicheko kwa wafanyabiashara, walaji na Taifa kwa ujumla kwani kupungua kwa gharama za usafirishaji wa mizigo kunachochea ukuaji wa uchumi na kuongeza ajira kwa wananchi, ikiiweka Tanzania katika nafasi ya kuwa lango kuu la kiuchumi Afrika Mashariki.

Mbossa amesema mafanikio hayo yanaimarisha nafasi ya Tanzania kama kitovu cha biashara Afrika Mashariki na Kati, na yanaonyesha uthabiti wa Rais Samia Suluhu Hassan katika kusimamia rasilimali za Taifa kwa manufaa ya Watanzania.

Miongoni mwa masuala ambayo TPA imeyataja kuwa ni mafanikio ya uwepo wa DPW tangu kuanza kazi Mei mwaka huu ni kupungua kwa muda wa kusubiri kwa meli, meli za mizigo ya Kontena na RORO sasa zinaweza kutia nanga mara tu zinapowasili, kuboresha muda wa mzunguko na kupunguza gharama kwa kiasi kikubwa.

Mbossa amesema uendeshaji wa kreni umeboreshwa, na uzalishaji umekuwa ukiongezeka kwa kasi kutoka Mei hadi Julai 2024, na bandari hiyo kufanikiwa kushughulikia meli yake kubwa zaidi.

Vilevile amesema ufanisi huo unaimarisha ushindani wa kianda kwani bandari ya Dar es Salaam sasa inalingana na Mombasa katika ushughulikiaji wa mizigo.

Kuhusu ufanisi wa bandari kwa sasa Wakala wa Usafirishaji wa Mizigo ya Kimataifa wa Ushoroba wa Kati (CCTTFA) ulisema ndani ya muda mfupi DPW imefanya mabadiliko makubwa na kuongeza ufanisi wa bandari ikiwa ni pamoja na kudhibiti eneo la bandari.

“Udhibiti wa eneo la bandari unawafanya wafanyakazi kujikita katika kazi yao hivyo kuokoa muda. Tumeshuhudia. Kuongezeka kwa mashine za kushusha na kupakia mizigo kila mtu sasa amejikita na kazi kongole nyingi sana kwa DP, punde bandari ya Dar es Salaam itakuwa miongoni mwa bandari bora duniani,” ilieleza taarifa yao ya mrejesho.Continue Reading

Fears of missed deadline as Tanzania drags feet on EAC road project

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In: Tanzania Foreign Investment News
General Image

By LUKE ANAMI

General Image

By ANTHONY KITIMO

Lack of funds for construction, delays in land acquisition and compensation are among factors cited for expected delays in the completion of a major East African Community Road project, which was billed to boost logistics on the bloc, linking its two main transport corridors.

The $751 million Coastline Transnational Highway project, conceived over a decade ago, covers Bagamoyo-Tanga-Horo Horo on the Tanzania side and Lunga Lunga-Mombasa-Mtwapa-Malindi on the Kenyan side.

Read more  here

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Makonda aagiza jengo la abiria Uwanja wa Ndege Arusha likamilike haraka

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In: Swahili News

Arusha. Mkuu wa Mkoa wa Arusha, Paul Makonda amesema kukamilika kwa jengo la abiria uwanja wa ndege wa Arusha kutapunguza msongamano na kuongeza utulivu wa abiria.

Makonda amesema hayo baada ya kutembelea na kukagua mradi wa ukarabati wa jengo la abiria katika uwanja huo ambalo ameagiza likamilike haraka na lianze kutumika Septemba mosi.

Akizungumza baada ya kukagua jengo hilo, Makonda amesema kukamilika mapema kwa jengo hilo kutawezesha abiria kuwa na mahali pazuri pa kusubiri usafiri na kupunguza msongamano uliopo sasa.

Amesema shauku ni uwanja huo kukamilisha maboresho ikiwemo uwekaji wa taa za kuongozea ndege ambayo yatauwezesha kutumika kwa saa 24, tofauti na inavyotumika sasa saa 12 pekee kutokana na kutokuwepo kwa taa.

“Tumetembelea hapa kuona kazi inayoendelea na ni shauku yetu uwanja utumike kwa saa 24,na kupitia Sh7 bilioni zilizotolewa na Serikali kwa ajili ya kuweka taa za kuongozea ndege, tunaamini mradi huo utasaidia uwanja utumike kwa saa 24,” amesema

“Kuhusu kuweka taa tumepata taarifa mkandarasi ameshapatikana na mkataba umesainiwa wa miezi 12 ila tumezungumza na mkurugenzi jana, walau miradi ukamilike ndani ya miezi minane,” aliongeza Makonda

Meneja wa uwanja huo, Godfrey Kaaya, amesema mradi wa jengo la abiria na miundombinu yake utagharimu Sh8 bilioni na umefikia asilimia 90.

Amesema jengo la abiria linalotumika kwa sasa lina uwezo wa kuhudumia abiria 150 wakati lile linalokamilishwa likitarajiwa kubeba abiria 1,000 kwa wakati mmoja.

“Tumejipanga kuhakikisha Septemba lianze kutumika kwani limeshafikia asilimia zaidi ya 90,” amesema.

Kuhusu mradi wa taa za kuongozea ndege, Godfrey amesema mkandarasi ameshapatikana na ameshaanza kazi za awali za usanifu na kuwa watasimamia mradi huo utekelezeke chini ya miezi 12, ili kiwanja hicho kiweze kutumika kwa saa 24.

“Kwa sasa kiwanja hiki kinatumika kwa saa 12 tu, ila ni kiwanja cha ndege cha pili kwa miruko mingi ya ndege Tanzania bara baada ya Julius Nyerere,” amesema

“Tuna miruko karibu 150 kwa siku. Kwa mfano kipindi hiki cha msimu wa utalii, zinakuja ndege 75 na zinaondoka ndege 75 na ndege zote ni ndani ya saa 12, tofauti na viwanja vingine ambavyo vinahudumia ndege kubwa,” ameongeza

Kuhusu ongezeko la abiria, meneja huyo amesema kwa kipindi cha mwaka 2019 kabla ya Uviko -19, kulikuwa na watalii wengi akitolea mfano Julai mwaka huo, walivyopokea abiria zaidi ya 38,000 akilinganisha na Julai 2024 walivyohudumia abiria zaidi ya 45,000.

“Hao abiria zaidi ya 45,000 asilimia zaidi ya 90 ni watalii, hivyo ni kiwanja muhimu hasa katika biashara ya utalii,” amesema.

Maboresho ya uwanja huo wa ndege ni muhimu kwani asilimia kubwa ya watalii hupita Kaskazini huku Arusha ikitumika kama lango kuu, hivyo kukamilika kwa miradi hiyo kutachochea kasi ya maendeleo kwa kiwango kikubwa.

Kwa sasa mwonekano wa kuingia katika uwanja huo umeanza kubadilika kufuatia maboresho yaliyofanywa, likiwemo eneo la maegesho ya magari ambalo limekamilika na linatumika.

Barabara ya kuingia katika uwanja huo imeboreshwa tofauti na ilivyokuwa awali, likiwa limebaki jengo la abiria linalokamilishwa na uwekaji wa taa.

Kama una maoni kuhusu habari hii, tuandikie ujumbe kupitia WhatsApp: 0765864917.Continue Reading

Over 20 million people internally displaced in Horn of Africa: IOM

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In: Tanzania Foreign Investment News
xhua

By XINHUA

Some 20.1 million people were internally displaced in July in the Horn of Africa region, the United Nations migration agency said on Thursday.

The International Organization for Migration (IOM) said in a report released in Nairobi, the capital of Kenya, that the number is an increase from 19.2 million people in June.

The IOM attributed the total surge to a rise in internally displaced persons from Burundi, Ethiopia, and Sudan. Most of the displaced people were in Sudan (10.2 million), Somalia (3.5 million), Ethiopia (3.3 million) and South Sudan (2 million).

“There are 10.2 million newly forcibly displaced people in Sudan, including 7.9 million internally and 2.1 million in neighbouring countries since the beginning of the conflict in April 2023,” the IOM said.

Other causes of displacements, according to the UN agency, are floods caused by heavy rains and food insecurity, especially in Ethiopia, Kenya, and Somalia.

Read: Africa home to nearly half of global displaced population, report says

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IOM also noted that the Greater Horn of Africa region had some 5.4 million refugees and asylum seekers. Uganda hosts the greatest number of refugees at 1.7 million, followed by Ethiopia at 1 million, and Kenya at 906,000.

About 67 million people were food insecure in the region in July, according to the Food and Agriculture Organization of the United Nations and the Intergovernmental Authority on Development, a regional bloc in Africa. Of the number, 39 million are in IGAD member states, including Djibouti, Kenya, Somalia, South Sudan, Tanzania, Sudan, and Uganda.

On August 2, international agencies issued an alert that the Horn of Africa would experience below-average rainfall during the October-December season that would transition to drought. This would mean a rise in the number of displaced persons due to food insecurity. 

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