Tanzania: Zanzibar Further Commits to Improve Infrastructures

Tanzania: Zanzibar Further Commits to Improve Infrastructures

Zanzibar — ZANZIBAR President Hussein Mwinyi has reaffirmed the government’s determination to improve infrastructures including roads and airports, to pave way for investments in the Islands.

Speaking at the reopening of a Five Star Hotel in Matemwe coastal Village, Unguja North region over the weekend, Dr Mwinyi mentioned the Pemba Airport, currently being developed as an International Airport to attract bigger planes to use the facility.

“We are committed to bringing changes in infrastructures to boost businesses in Pemba including tourism. This is an opportunity for investors,” Dr Mwinyi said at the event attended by senior ministers and other dignitaries.

Dr Mwinyi said that the government has already signed a contract for the development of Pemba Airport, so that it can start receiving international airlines. He also talked about the major improvements of Abeid Aman Karume International Airport (AAKIA) after the construction of Terminal III.

“It has been doing well and already overwhelmed by increasing planes and travellers’ pushing us to construct a new terminal IV,” said Dr Mwinyi.

ALSO READ: Zanzibar eyes improved infrastructures for economy, social development

“The government has also decided to improve Terminal 1, and 2 to improve the environment for investment and boost tourism in the country. We have other strategic projects such as improving social services, communication infrastructures, development of schools, hospitals, markets, as well as distribution for safe water,” Dr Mwinyi explained.

The refurbished hotel has been named ‘the Mora Hotel’ replacing the name ‘Emarald’ when it was first opened last year. Dr Mwinyi expressed happiness that the improved infrastructure will lead to increasing investments and boost tax collection.

He pointed out that when investors are in big numbers and the influx of tourists is high, it is also to the advantage of local citizens: farmers, workers in construction industry, fishermen and traders find reliable market for their services and products.

Dr Mwinyi reminded investors about local content and Corporate Social Responsibility (CSR).

He said it was crucial for surrounding villages to get health centres and support to orphans/ orphanages centres and other essential needs. President Mwinyi also directed the Minister of State- Office of the President (Labour, Economy and Investments), Mr Sharif Ali Sharif, to remind investors particularly hoteliers to buy locally produced products including farm products, to expand opportunities for local entrepreneurs and local businessmen for them to grow.

Speaking about the hotel project, Dr Mwinyi said he was happy to reopen the facility that had cost more than 600 million US dollar, creating about 600 jobs to Tanzanians. Managing Director of the ‘Tui Group’ which owns ‘the Mora Hotel’ Mr Sebastian Abel, praised the beauty of Zanzibar with a good investment climate, attracting investors from abroad.

On his part, Minister Sharif assured maintaining good relations with all the investors in the country. The Zanzibar Investment Promotion Authority (ZIPA) Director General Mr Saleh Saad Mohamed, said the hotel has already invested in the Islands of Zanzibar more than 500 million US dollars and also own hotels “RIU” in Nungwi, and “TUI BLUE” in Mangapwani.

He said the company “Tui Group” also expects to invest under another name “Robinson” which ZIPA has already approved at the value of 50 million US dollars through the company named “Blackstone Limited.” The Unguja North Regional Commissioner (RC) Rashid Hadid Rashid has said that the region has been fortunate to have now a total of 316 hotels out of which 18 have the status of five-star.

Source: allafrica.com

Original Media Source

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

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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