Unguja. Zanzibar minister of Works, Communications and Transport, Dr Khalid Salum Mohamed, has outlined Zanzibar Port Authority’s (ZPA) strategies in a speech delivered to the House of Representatives.
The ZPA estimates total revenue of Sh37.9 billion for the year, with expenditures reaching Sh77.4 billion.
This includes Sh8 billion for routine operations, Sh8.7 billion for salaries, and Sh60.6 billion for development projects.
To finance a portion of these projects, according to Dr Mohammed’s budget speech, the authority will have to take a loan of Sh40 billion.
The ZPA anticipates a busy year, aiming to serve over 20,000 vessels, including domestic ships, foreign ships, and Dhows.
“Cargo handling is also projected to rise, with the Authority expecting to manage nearly 2 million tonnes of mixed cargo, over 68,000 containers, and 158,000 tonnes of fuel,” he said on Wednesday, May 29.
According to the minister, several key projects are underway, including the construction of the Shumba Port in Kizimkazi and improvements to Mkoani Port.
The Mkoani project encompasses office buildings, passenger terminals, the Mpiga Duri passenger port, and the establishment of sea tax stations.
Additionally, repairs are planned for towers in Makunduchi and Mwana Mwana.
The ZPA’s planned procurements for modernization include tugboats, pilot boats and vehicles.
Other include cargo scanning machines, ship guiding buoys, ICT equipment, and oil spill equipment.
“To further enhance efficiency, 43 staff members will receive training through short- and long-term programmes.”
The minister told the House that a public-private partnership between the ZPA and Zanzibar Multipurpose Terminal (ZMT) at Malindi Port has yielded positive results.
“The Revolutionary Government of Zanzibar, through the Ministry of Works, Communications, and Transport under its institution, the Port Authority, entered into a contract on May 18, 2023, with Africa Global Logistic (AGL) registered in Zanzibar under the name Zanzibar Multipurpose Terminal (ZMT).”
As a result of this partnership, waiting times for ships have decreased, container handling efficiency has improved, and bulk cargo handling capacity has risen.
Additionally, modern lighting facilitates 24-hour operations, and a dry port is under construction to further expedite service delivery.
The ZMT project prioritises staff development. Forty-two employees have been trained and certified in operating heavy equipment, ensuring efficient use of new machinery like Reach Stackers and mobile cranes.
The Zanzibar Ports Authority’s plans for 2024/2025 target increased capacity, improved efficiency, and a skilled workforce that will position Zanzibar’s ports to play a vital role in the islands’ economic development.
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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.
