Dar es Salaam, Tanzania.
Tanzania’s pension funds, the Public Service Social Security Fund (PSSSF) and the National Social Security Fund (NSSF), have invested trillions of shillings in loss making high-rise buildings due to lack of tenants, the latest audit report has noted
The 2021/22 audit report by the Controller and Auditor General (CAG) shows that the buildings have higher operational costs than the profit they make through services offered.
According to the report, the economic occupancy rate for well-managed buildings is at least 90 per cent.
The Water Front Tower has an occupancy rate of just 15 percent, while the Julius Nyerere Pension Tower has a 75 percent occupancy rate, according to the CAG’s 2021/22 report.
The average occupancy rate of PSSSF’s buildings was just 21 percent in 2021/22 and the economic occupancy rate for well-managed buildings is at least 90 percent.
For instance, the PSSSF’s Twin Tower in Dar es Salaam has spent Sh245.65 million on operations, while the collections from the service fee are Sh96.81 million.
The other building is the Golden Jubilee Tower in Dar es Salaam city centre, which spent Sh226.97 million for operation, while service fee collections were Sh196.73 million.
PSSSF also recorded losses in its Kaloleni and Mikocheni apartments while making profits in the buildings of Masaki apartments and PSSF International House.
Other loss making PSSSF buildings are Sokoine Mtwara building, Jacaranda, Haile Selassie, Millennium Tower II, Victoria House, PSSSF Commercial Complex, PSSSF Arusha House, and PSSSF Victoria House.
“The increase in building operating costs was caused by the unsatisfactory collection of service fees and the decrease in the number of tenants in the buildings.”
“The audit analysed the financial year of the Social Security Fund for Public Servants from the years 2018/19 to 2020/21 and revealed that real estate investment had an average return on investment of 2.66 percent, compared to 2.67 percent of investment in stocks and 9.28 percent in the financial market,” the report states.
In another development, the report has revealed that the Prime Minister’s Office- Youth Employment, Employment, and People with Disabilities docket did not conduct an investigation audit for the PSSSF and NSSF for the year 2021/22, while in 2020/21 it conducted an audit with an investigation for the PSSSF only.
“Furthermore, the Office of the Prime Minister – Youth Work, Employment, and People with Disabilities could not carry out monitoring activities as it should for the period reviewed from the financial year 2019/20 to 2021/22,” the CAG says in the report.
When contacted, one of the senior PSSSF officials, who did not want to be named, said that the only person who can give details on that matter is the Prime Minister’s Office, when responding to the report in parliament.
However, he pointed out, various efforts have been made to ensure that the investment they made is productive for the members.
“From last year until now, we have made great progress, the investments we made are starting to grow slowly, let’s wait for the time to answer the arguments,” he said.
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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit
Dar es Salaam — Tanzania’s President Samia Suluhu Hassan has declared an outbreak of Marburg virus, confirming a single case in the northwestern region of Kagera after a meeting with WHO director-general Tedros Adhanom Ghebreyesus.
The confirmation follows days of speculation about a possible outbreak in the region, after the WHO reported a number of deaths suspected to be linked to the highly infectious disease.
While Tanzania’s Ministry of Health declared last week that all suspected cases had tested negative for Marburg, the WHO called for additional testing at international reference laboratories.
“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”Amelia Clemence, public health researcher
Subsequent laboratory tests conducted at Kagera’s Kabaile Mobile Laboratory and confirmed in Dar es Salaam identified one positive case, while 25 other suspected cases tested negative, the president told a press conference in Dodoma, in the east of the country today (Monday).
“The epicentre has now shifted to Biharamulo district of Kagera,” she told the press conference, distinguishing this outbreak from the previous one centred in Bukoba district.
Tedros said the WHO would release US$3 million from its emergencies contingency fund to support efforts to contain the outbreak.
Health authorities stepped up surveillance and deployed emergency response teams after the WHO raised the alarm about nine suspected cases in the region, including eight deaths.
The suspected cases displayed symptoms consistent with Marburg infection, including headache, high fever, diarrhoea, and haemorrhagic complications, according to the WHO’s alert to member countries on 14 January. The organisation noted a case fatality rate of 89 per cent among the suspected cases.
“We appreciate the swift attention accorded by the WHO,” Hassan said.
She said her administration immediately investigated the WHO’s alert.
“The government took several measures, including the investigation of suspected individuals and the deployment of emergency response teams,” she added.
Cross-border transmission
The emergence of this case in a region that experienced Tanzania’s first-ever Marburg outbreak in March 2023 has raised concerns about cross-border transmission, particularly following Rwanda’s recent outbreak that infected 66 people and killed 15 before being declared over in December 2024.
The situation is particularly critical given Kagera’s position as a transport hub connecting four East African nations.
Amelia Clemence, a public health researcher working in the region, says constant vigilance is required.
“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”
The Kagera region’s ecosystem, home to fruit bats that serve as natural reservoirs for the Marburg virus, adds another layer of complexity to disease surveillance efforts.
The virus, closely related to Ebola, spreads through contact with bodily fluids and can cause severe haemorrhagic fever.
Transparency urged
Elizabeth Sanga, shadow minister of health for Tanzania’s ACT Wazalendo opposition party, says greater transparency would help guide public health measures.
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“This could have helped to guide those who are traveling to the affected region to be more vigilant and prevent the risk of further spread,” she said.
WHO regional director for Africa Matshidiso Moeti says early notification of investigation outcomes is important.
“We stand ready to support the government in its efforts to investigate and ensure that measures are in place for an effective and rapid response,” she said, noting that existing national capacities built from previous health emergencies could be quickly mobilised.
The situation coincides with leadership changes in Tanzania’s Ministry of Health, with both the chief medical officer and permanent secretary being replaced.
This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.
Source: allafrica.com
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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