Zanzibar.
Stone Town Conservation and Development Authority has signed a Memorandum of Understanding (MoU) with NMB Bank Plc in an effort to sustainably maintain and manage the famous Forodhani park in Zanzibar.
Located along the main seawalk close to some of the most famous buildings of Stone Town (the House of Wonders and the Old Fort), the Forodhani Park offers a great night market for visitors who want to try some local food and just chill in the evenings or watch the island’s amazing sunset.
Speaking during the MoU signing event at the Forodhani park at the weekend, NMB Bank’s head of retail banking, Mr Filbert Mponzi, said the move was in line with the lender’s efforts to support Zanzibar’s blue economy model, which, among other things, puts emphasis on boosting the country’s tourism potential.
Tourism contributes an estimated 27 percent to Zanzibar’s GDP, around 80 percent of its foreign exchange earnings, and an estimated 60,000 jobs.
Under the MoU, NMB Bank Plc will be responsible for maintaining the park, which will enhance tourists’ experiences while contributing to the revitalisation of the tourism industry.
“This MoU reiterates our bank’s commitment to continue supporting the sustainable development of Zanzibar. Forodhani park is strategically located, which is why it attracts thousands of tourists. As a development partner, we feel duty bound to maintain this park to enable Zanzibar to remain the preferred tourist gateway,” Mponzi said.
Mponzi said apart from maintaining the park, the bank will also ensure the provision of financial services to small-scale entrepreneurs operating at Forodhani so they can work easily as well as to potential tourists.
Forodhani Park Manager Amir Hamza said the decision to partner with NMB will help to transform the park and beautify it so it can become more attractive.
Zanzibar’s Minister for Tourism and Heritage, Mr Simai Mohamed Said, said that though Zanzibar has 21 recreation parks, Forodhani Park is unique.
This is not the first time that NMB Bank Plc has been involved in developing tourism in Zanzibar. During the past two years, the bank has signed an MoU with the Revolutionary Government of Zanzibar whereby the two parties work together in three specific areas. These include destination marketing and Zanzibar’s tourism position; diversifying tourism supply and experience facilitation; and empowering youth and the community.
Through its involvement with the Hotel Association of Zanzibar (HAZ), NMB Bank Plc is also key in offering financial products and services to investors and tourists.
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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.
