Dar es Salaam. The push for green mobility has received a boost after an asset financing company joined the fray to deepen adoption of the gas-fired three-wheelers in Tanzania.
Last week, Watu Credit (Tanzania) Limited announced an initiative to expand its asset financing support for compressed natural gas (CNG)-powered three-wheelers as part of the company’s efforts to support environmental sustainability.
In the last two months, the company has financed 200 tricycles worth Sh2.2 billion and the target is to reach at least 1,000 CNG-powered three-wheelers by the end of 2024.
“Sustainable future in Tanzania is only possible if we take action to transform urban mobility with clean transportation solutions. This is a crucial step that we must take to ensure a better world for ourselves and future generations,” said the company’s country manager, Mr Rumisho Shikonyi.
According to him, the firm bridges the gap of meeting upfront costs of adopting clean transportation by offering asset financing for mobility and connectivity assets, making eco-friendly vehicles more accessible.
“We go beyond just vehicles, extending financing to smartphones for ride-hailing apps and city navigation. This comprehensive approach empowers individuals, entrepreneurs, and small businesses to overcome financial hurdles and participate in a cleaner transportation future,” said Mr Shikonyi.
The company also provides financing for supporting electric vehicle adoption which fosters a nascent industry with immense job creation and economic development potential.
“We’re helping Dar es Salaam build a greener future by pioneering innovative financing solutions for clean energy transitions.
Through collaborative partnerships with manufacturers, government agencies, and community organisations, we’re driving positive change and laying the groundwork for a brighter, greener tomorrow for our city,” he added.
He added that the company looks to empower individuals and businesses in Tanzania to thrive in a rapidly evolving world, by staying at the forefront of asset financing for sustainable mobility.
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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.
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