Tanzania: Three listed firms pay govt 110bn/- dividend

The government has earned 110.4bn/- as dividend last year from three listed companies where it owns shares.

The DSE Market Research and Development Manager, Mr Ibrahim Mshindo named the listed firms as Tanzania Breweries Limited (TBL), Tanzania Cigarette Company (TCC) and National Microfinance Bank (NMB).

He said in an interview in Dar es Salaam that apart from the earned dividends to the government from the said companies have also created more quality employment, paid more taxes, and increased more wealth to investors.

"Creation of wealth to investors is one of the major objectives of the stock markets and this is one of reasons why the government champions the establishment of the Exchange in 1990's," said Mr Mshindo.

Of the three, the government has the highest number of total dividend paid at NMB amounting to 65bn/- followed by TBL 33.4bn/- and TCC 12bn/-.

Apart from other levies and duties paid, the three companies have in the period under review paid nearly 187.7bn/- to the government as income tax.

From the three listed companies, it is a clear indication that there are more benefits that could be reaped, an incentive to persuade the government to list more firms.

For example, Mr Mshindo identified ten public enterprises for which the government has shares and qualify to list immediately including Airtel Tanzania (40 per cent shares), Mbeya Cement (25 per cent), Aluminium Africa (40 per cent), Tanzania Electrical Goods Manufacturing Company (30 per cent).

Others are NBC (1997) Limited (25 per cent), Tanzania Cables (49 per cent), Kilombero Sugar Company Limited (25 per cent), TPC Limited Moshi (25 per cent), Mtibwa Sugar Estates Limited (5 per cent) and Polysacks Limited (25 per cent).

The DSE has continued to post outstanding performance and 18 months it increased in terms of market liquidity to 10 per cent from only one per cent, domestic market jumped to about 10tri/- from 3.3tri/-.

"This relatively significant growth in the market activities is a result of initiatives taken by the DSE management and board in improving operational efficiency and good performance of the companies that are listed," he said.
Source: Daily News, reported from Dar es Salaam, Tanzania
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