Dar es Salaam. The Export Processing Zones Authority (EPZA) has introduced a collective investment scheme as a strategic mechanism to finance the development of industrial sheds and warehouses, essential for supporting industrial activities.
EPZA Director General, Charles Itembe, announced the initiative on December 3, 2024, stating that the scheme aligns with recommendations from capital market stakeholders.
“The collective investment scheme targets the industrial Real Estate Trust Fund to finance the construction of industrial sheds and warehouses for leasing to investors,” Mr Itembe explained.
He said there was a strong demand for industrial infrastructure and that the initiative would facilitate infrastructure development in the Bagamoyo Special Economic Zone, where projects like roads and water supply are already underway.
“With essential infrastructure in progress in Bagamoyo, we are simultaneously working to attract investors to the area,” he said, adding that the scheme could help secure funds before the completion of the zone.
Mr Itembe noted that with the Benjamin William Mkapa Special Economic Zone in Dar es Salaam fully occupied, accelerating infrastructure development in Bagamoyo and other regions is critical.
The initiative presents a profitable investment opportunity for local and international investors, promising returns comparable to government and corporate bonds.
It aims to attract retail investors, institutional investors, pension funds and other corporate investors. EPZA plans to release an information memorandum, approved by the Capital Markets and Securities Authority (CMSA), to market the service.
The Benjamin William Mkapa Special Economic Zone has already demonstrated success, hosting investors in garment production, bank card manufacturing, and agricultural processing.
The zone generates $70 million in annual sales, supports 5,000 jobs, and has attracted $400 million in capital investments.
Moreover over 220 export-oriented factories across Tanzania have invested $5 billion in capital, generating $3.5 billion in export sales.
The Bagamoyo Special Economic Zone, spanning 980 hectares, will be developed into an industrial city through collaborative efforts between the government and the private sector.
Share this news
This Year's Most Read News Stories
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.
East African Community Bloc Dismisses Fake Common Currency
The secretariat of the East African Community (EAC) regional bloc has dismissed a post on X, formerly Twitter, which claimed that the bloc’s member countries have launched a common regional currency.Continue Reading
Fast Satellite Internet in Kenya by June
Elon Musk’s satellite Internet firm Starlink announced it will launch in Kenya in the second quarter of this year.Continue Reading
