DTB dividends up by 7%

Saturday, 24 March 2012 13:28 Kenan Kalagho

DAR ES SALAAM, TANZANIA - Tanzania based, Diamond Trust Bank (DTB) has increased dividends  by 7% following a better performance for the year 2011.
The bank's statement availed to East African  Business Week in Dar es Salaam  last week said the banks' board of directors had "proposed a 40% per share dividend compared to the 33% that was paid last year while planning for the banks expansion in other regions."
The chairman of the board of directors for Diamond Trust Bank in Tanzania, Mr. Abdul Samji said the results of the outstanding performance show that the bank's pre-tax profit rose by 44% to Tsh10.2 billion (US$ 6.41 million) in 2011 from Tsh7.1 billion (US$ 4.45 million in 2010.
Mr Samji said the bank's deposit base grew by 22% to Tsh269 billion (US$ 172.44 million) in 2011 from Tsh221 billion (US$141.67 million) in 2010 and that the  loan book also went up by 30% to US$123.72 million (Tsh193 billion) while the asset base increased by 19% to US$206.41 million (Tsh322 billion) from US$173.08 million (Tsh270 billion) in 2010.
He said that Tanzania turned in an exemplary year of performance in 2011 despite the adverse macroeconomic environment that set in at the end of the year.
"With the pre-tax profit crossing US$6.41 million (Tsh10 billion) for the first time, DTB marked an important milestone as we strive to achieve our long term vision of emerging as a significant banking player in Tanzania," Samji said.
He emphasized that, DTB would continue on its growth trajectory anchored on expanding its branch network with an aim of covering all commercial centers in Tanzania over the medium term.
"The successes that the bank has recorded at the ended of last year, is a re-affirmation of the twin pronged long term strategy of building a robust liability franchise and practicing a strong credit culture", it read part of the statement.
According to him, DTB would continue to adopt practical risk management practices as it was amongst the few banks to increase the general provision on performance loans to 0.75% despite an extremely low non-performing loan ration of less than 0.50%.
DTB is being recognized as amongst the most well run banks on the back of sustained business performance in the country with low default rates but  growth rate higher than average.
The bank is an affiliate of the Aga Khan Fund for Economic development (AKFED), the economic development arm of the Aga khan Development Network while the other banks key share holders is Diamond Trust Bank Kenya limited.

Walking the ruins of Bagamoyo

Travel and Tourism

Saturday, 24 March 2012 13:37 Kenan Kalagho

I had just dropped off from the commuter at the Bagamoyo town. It costs USD$1.8 from Dar es Salaam to Bagamoyo for a  two- hour journey. Soon after my arrival at around 10am I found myself walking five kms to the ancient place of Kaole located on the East coast of Bagamoyo township
It took me one hour to see Kaole ruins. There are many motorcycles better known as bodaboda that will take you to kaole at $1.5 from Bagamoyo township that means a return trip will cost a tourist $3 on a motorcycle.

(Musa Elias a tour guide at Kaole ruins in Bagamoyo expalining at one of the tombs Photo By Kenan Kalagho)
Walking to see the ruins highlighted the poverty and hardships that dot the township of Kaole surrounded by mud thatched houses yet a place filled with so many treasures like the ancient old history which brings in tourists from around the world daily.
Kaole is one of the oldest township after Kilwa that dates back to the 13th century, yet the history that Bagamoyo carries, the ocean treasures and tourists it brings seems not to be contributing anything to the inhabitants.
I met Musa Elias a tour guide at Kaole ruins and upon paying $1 as an entrance fee, Elias was took me several centuries back in time as he narrated how the place came to be.
Foreign tourists are charged $20 per head while East Africans pay $2.
"Kaole is the place known to have accommodated the Shirazi people from the East, who settled in  East Africa while spreading Islamic religion and trading in Ivory.
This area of Kaole is also the second oldest township to be recorded in the history of East Africa after Kilwa," says Elias as he walked me through Kaole ruins.
He says this place was previously called "Pumbuji" by the Wazaramo, Wakwere and Wandigo who were the first settlers in the area.
Upon the arrival of the Shirazi people mosques and wells were built in the area and the ruins are  visible to this day.

(Musa Elias a tour guide at Kaole ruins in Bagamoyo expalining at one of the tombs Photo By Kenan Kalagho)
The name Kaole was labeled by the Shirazi people after their failure to understand the Wakwere and Wazaramo languages who used to witness their prayers.
Elias says the Wazaramo got amazed at the way the Shirazi people  prayed where the Muezzin  could climb on the rooftop of the mosque while calling out believers.
"This amazed the Wazaramo and they could tell one another to come to this place and see how the Shirazi people were conducting their prayers saying, "tuchole tukalole" in their vernacular (let's go and see) and this was how the term Kaole came into being to the Shirazi people who failed to pronounce the terms by Wazaramo and ended up pronouncing it as "Kaole"
However there is also tale of a 13-year old Shirazi girl called Mariamu who was believed to be a soothsayer and died a sudden death together with three other little girls. The three other girls who died the same day with Mariamu, "the soothsayer" were all buried beside her tomb. It was believed that the three girls were sent by God to accompany her.
Muslim pilgrims usually offer burnt offerings at the tomb of Mariamu whenever they visit saying it was one way they receive blessings and are forgiven of their sins.
Her tomb says it all with the magnificence of how it was built. It shows that despite her age, she was respected and adored in the society of her era.
The mosque at Kaole ruins is one of the oldest in the history of East Africa, being the second oldest mosque after the one found in Kilwa built in the 13th century. Beside this mosque lies the old ancient water well. 
"This well has never run dry since the 13th century, that's why many people say it contains "holy water". Many people of all faiths usually collect it water whenever they visit the place believing it cleanses their sins" says Elias.

(Musa Elias looks at the oldest well in history that has never dried up at Kaole ruin in Bagamoyo Photo By Kenan Kalagho)
It reminded me of the biblical well where Jesus told a Samaritan woman that He had water that upon drinking will never a person thirsty again..
This well too according to the Bible has never run dry. Could there be only two wells on Earth with pure water and that has never run dry? That could be a great discovery I said to myself as I proceeded with Elias to the "grave of lovers", a couple that died on the same day on their way to Zanzibar and were buried in the same tomb.
"This tomb is called the lovers grave because these lovers were found dead along the coast while their arms clamped on each other and people decided that  it was not proper if they had buried them separately," he says.
Our expedition came to an end as we approached the first oldest port which was used by the missionaries John Speke and Richard Burton when they first came to Africa while looking for Dr David Livingstone.
The old port was abandoned after failure to contain the growing of mangrove trees in the area and shifted to Bagamoyo township in the 18th century, to a port that is still in use to this day.
On the other side of Kaole ruins however, lies a water well, tombs and an old mosque whose history is yet to be recorded.
However, it seems the lack of professional archeologists to unearth facts and have every ancient discovery in our land recorded for the coming generations is to blame for the missing history.
The Kaole ruins are visited by people from all walks of life from Monday through Sunday.

17 firms short-listed for Bank M's awards

Monday, 26 March 2012 06:31 Kenan Kalagho

DAR ES SALAAM, TANZANIA - Seventeen companies out of 60 operating in the East Africa Community (EAC) have been short listed in the second edition of the Bank M's Corporate Social Responsibility (CSR) awards this year.

(Bank M Tanzania Head of Corporate Affair Mr Ambrose Nshala talking to journalist in Dar es salaam on the CSR's awards due on April 17. Photo By Kenan Kalagho)
 Bank M Tanzania's head of corporate affairs, Mr. Ambrose Nshala, told East African Business Week in Dar es Salaam last week that the CSR's awards to take place on April 17 are aimed at recognizing companies that have gone an extra mile in coming up with programs that help the needy in the community.
This year's CSR awards have been categorized into four categories. Which includes environmental excellence awards, best workplace practice awards.
Others include most ethical and responsible business practice for supply chains award, most sustainable and scalable community investment awards and award for innovative partnerships.
A senior consultant with Africa Practice Ltd, Mr. Teweli Teweli said, the conditions that were met for short listing companies were aimed at looking at the contributions of these companies to the public at  large.
He said judges from the EAC region and Europe short listed a total of 17 companies that includes, Sarova Hotels and Resort lodges, Unilever East and Southern Africa, British American Tobacco and Exim Bank Tanzania.
Other companies include, AAR Uganda, Unilever Tea Kenya, Tullow Uganda Operations, Serengeti Breweries ltd, Swissport Tanzania, Standard Chartered, Kuoni private Safari East Africa, Vodacom Tanzania Ltd and Tigo Tanzania.
This is the second time for the CSR awards to take place in Tanzania; the previous awards took place in 2010. These awards have been sponsored by Bank M in partnership with the East African Business Council (EABC) among others. The second Bank M's CSR awards also included a 50 set category - the Elvis Musiba Award for Innovative Partnerships.
The short-listed candidates will now enter the judging phase and the winners will be announced at the awards ceremony in Dar es Salaam.

Tanzania: India Plans Agriculture Equipment Hub in Dar es Salaam

By Kenan Kalagho, 19 March 2012

Dar es Salaam — India is looking into the possibility of investing more in Tanzania to create more jobs for nationals.
The Acting Indian High Commissioner to Tanzania Mrs. Hemalata Bhagirath said her country is considering investing in industrial production to make Tanzania, the biggest investment destination for substantial Indian products.
She said India wants to establish an industrial hub to manufacture the tractors in order to realize the kilimo kwanza initiative that was launched by the government in 2005.
"This move will aim to benefit Tanzania and enable it become a major exporter of agricultural products in the East African region and the world at large, Bhagirath said while visiting the Suma JKT, a Kilimo Kwanza agro business project in Dar es Salaam last week. The project is being co-financed by the Indian government and Tanzania.
The Indian government has so far provided loans to Tanzania on the agriculture Kilimo Kwanza initiative in form of tractors to farmers amounting to around $40 million under the Suma Jeshi la Kujenga Taifa (JKT) project in Dar es salaam.
Tanzania's trade balance with India stood at US$895.01 million by the end of last year and within the same year the exports to Tanzania from India stood at US$226.19 million where as bilateral trade stood at US$1,121.2 million with India's export of US$895.01 million compared to import of US$226.19 million in 2011.
The Executive Director of Suma JKT, Col. Ayoub Mwakang'ata, said there was a great improvement in the sales of the tractors, after they the price dropped from the previous US$16,666 to US$10,256.
Col. Mwakang'ata appreciated the Indian support for the project saying I will help alleviate poverty.
Tanzania's major imports from India includes, mineral fuels, oils, iron & steel, pharmaceuticals, motor vehicles (including auto parts), iron & steel, electrical machinery/equipment, machinery/ appliances, plastic products including synthetic polymers, rubber items including tires, cotton fabrics, apparel & clothing, cereals.

A day on the Indian Ocean

Monday, 19 March 2012 05:40 Kenan Kalagho

If you hardly ever have holidays and you happen to get one having worked for too long then think of cruising to one of the four islands owned by Marine Parks and Reserves.
Mbudya is one amongst the four, the others are Bongoyo, Funguyasini and of course Pangavile which is restricted by the government of Tanzania, tourists are not allowed to set their foot on it.
People from all walks of life come to relax to these beautiful islands located to the north-coast of Dar es Salaam city in Tanzania off the Indian Ocean. I happened to visit Mbudya via the white sands hotel in Dar es Salaam at a cost of USD $10 per head.

(The old colonial tombs found on the island are a great attraction to tourist , Photo By Kenan Kalagho)
Cruising from White Sands Hotel took us only 10 minutes by speed boat though earlier I was told it was a 40 minutes sail, so I kept asking myself whether my colleague was just wanted to scare me with his 40 minutes.
I had earlier arranged to be accompanied by an official from the Marine Park and Reserves to the island but officer didn't turn up on that day, so I had to set off without him.
Accompanied with a family of eight whites on the very fast boat, it took us 15 minutes to disembark due to a very strong tide that blowing towards the island.
We were told to hold on to the boat and no one should dare to stand or move around, we have to be seated, people were so cool as everyone ponder of whether he/she should do his/her last prayer.
After 10 minutes, the marine cooks who had arrived there earlier saw us and came out rushing for a rescue pulling boat with a rope out to the sand.
Having set foot on the island, I thought of how a small country such as Malaysia which has little tourism attractions compared to Tanzania engaged in promoting its attractions even on CNN while Tanzania with big potential does little in term of promotion (Tanzania promotes itself on the English premiership matches).
Tourists from all walks of life flock to this island on a daily basis to witness the beauty and greenery that dots the island.
The island is full of pine trees besides the greenish natural mangrove that dots' it.  It has pine trees strings of ropes tied between the tress for tourists to rest on as they feel the fresh breeze from the ocean.
Pius Majembe, a cook with the marine parks that offers foot and catering services told me use of the tent on the island is free unlike that on Bongoyo Island where US$5 is charged per day.
On this island, "the first bird catches the fly" of his choice till the evening, so you can go ahead and look for your choice, said Majembe..

(There are also a display of items being sold at the ilsand like sandals and swimming costumes. Photo By Kenan Kalagho)
For every place that a man has ever lived, there is one thing that will betray to a visitor, that people actually lived there.
On this island, there are ancient old graveyards that stand firm to this day. It is believed these graveyards were remnants of the ancient Arabs sharifians who used to buy slaves from Bagamoyo.
They had built themselves points of stoppage on these three marine islands on their way as they headed with the slaves to Zanzibar.
These ancient tombs attracts more than just tourists but also witch doctors, artists, soccer teams for what Majembe said in search of good fortune.
We could have headed a bit to the thick forest on the island to discover more on the island but alas! there are no passable paths on it.

(A tourist accompaned by his children after the swim on the island walking past the sandy white beach on the isalnd of Mbudya. Photo By Kenan Kalagho)
Majembe also owns a small shop on the island where he sells traditional made tools like sandals, ear-rings, necklaces, towels and bags which he said are liked by tourists.
He said the prices of his items being range between US$ 10 to US$ 20. On the island one is not allowed to spend a night, so he usually sells the items every Saturdays and Sundays being the busiest days for tourists.
A catering service from the marine also offers snacks usually fast foods at USD $6.
Majembe says the island is also a best place to spot Spinner dolphins, Humpback dolphins, and whales especially during low tides. These attract a lot of tourists.
He says while tourists usually will jump in to play alongside with dolphins whales are very dangerous because they can cause a boat to capsize.
The mere thought of a boat capsizing run me cold especially that there was a return journey to make. No wonder I became silent since I did not want to hear more scary stories especially having gone through the arrival ordeal when our boat nearly failed to land.
But with the high tide on the Indian Ocean neither the whale nor the dolphin moves around to be seen.
I left with the first boat at 3pm leaving Majembe and other marine cooks including several tourists still enjoying the beauty of the island.
The tide that left us being showered by the Indian Ocean waters all the way to the white sands hotel.
I was almost "half dead" as we disembarked the boat at the White Sand. Hotel.  I will be back again on Mbudya island to view dolphins and whales being spotted from the shores of the island. The island can be visited at any time.

Dar es Salaam city builds gas pipeline

Dar es Salaam city builds gas pipeline

Tuesday, 28 February 2012 05:43 Kenan Kalagho

DAR ES SALAAM, TANZANIA - A state owned, Tanzania Petroleum Development Corporation (TPDC) has embarked on US$2.8m (Tsh4.5b) project aimed at connecting Dar residential houses and industrial areas with compressed natural gas (CNG).
The TPDC's senior principal research and project development officer responsible for natural gas, Ms. Joyce Kisamo   said construction of the gas pipeline from Ubungo in the northern part of Dar city to the light industrial area, Mikocheni which located in the north east is in progress.
Ms. Kisamo said the pipeline aimed to connect about 57 residential houses in the area once the project completed.

Songo Songo Gas Plant staff demonstrate how gas is produced at the Kilwa plant recently. (Photo By Leonard Magomba)

"The purpose of this project is to connect more residential houses as well as industrial areas in Dar es Salaam and later on the other parts of the country, "she said. 
"The project will provide affordable power that will reduce the cost of production as well as deforestation and pollution in the country."
Dar es Salaam Institute of Technology (DIT) has been mandated with gas installations activities after receiving training from the UK based firm, Consultant Brackno Limited in partnership with Kimpils Consult Limited, a local consulting firm based in Tanzania.
According to Ms Kisamo,  other institutions which will receive similar gas installation training include  the Bureau of Industries Corporation (BIDCO) under the University Dar es Salaam and Vocational Education and Training Authority (VETA).
She said the training would enable local engineers and technicians to train other Tanzanians to carry out natural gas pipeline project connections and installations wherever needed. The training was also aimed at building capacity and       practical demonstrations to Tanzanian engineers on maintenance and on operation of natural gas infrastructure in the country,Kisamo said.
Minister for energy and minerals William Ngeleja said the government partnership with Swala Energy is very important for the development of     both oil and gas exploration and drilling in the country.
The TPDC managing director, Mr. Yona Kilagane, said since the discovery of gas from  2004 to 2011, the government has saved almost US$2.10 m (Tsh.3.3b) from the importation of fuel used to run generators.
"This is due to the fact that natural gas contributes 416 megawatts to the national grid which accounts for 35% of all the electricity produced in the country," Kilagane said.

Tanzania new oil bulk system hurting Zanzibar

Tanzania new oil bulk system hurting Zanzibar

Sunday, 04 March 2012 20:16 Kenan Kalagho

DAR ES SALAAM, TANZANIA - The new bulk oil procurement system that was introduced by the government of Tanzania with an aim of cutting the number of importers and curbing price fluctuations, has led to insufficient oil supply to Zanzibar.
Speaking in Dar es Salaam last week, the Chairman of the Board of Directors of the Petroleum Importation Coordinator (PIC), Mr Shanif Mansoor, said he had received complaints from the government of Zanzibar regarding the new system that has been denying the country access to petroleum products.
Under the new system, a firm that wins the bidding process is required to import a specific amount of oil which usually lasts two to three months.
“This gives a vessel to load a specific needed consignment of oil without any surplus,” Mansoor 
said.
(Minister Ngeleja stressing apoint during the meeting. Photo By Kenan Kalagho)
He said it was now hard for the government of Zanzibar to access oil under the new system.
“The government of Zanzibar used to buy the surplus from traders, but this time the vessels coming into the country carry specific tons of oil consignment as per the agreement with the firm that wins the oil importation contract,” says Ngeleja adding “This is denying Zanzibar access to fuel.”
Mansoor noted that under the new system the government was much assured of the oil imports in the country due to the  agreements made with the oil importation firm. 
Currently Tanzania has off loaded a total of 453,606.94 metric tonnes of oil at the Dar es salaam port following the first tender which was won by a Swiss oil marketing firm, Augusta Energy of Geneva, to import 530,000 metric tonnes of oil worth $500m (about Shs850billion).
Mansoor said there were still three vessels waiting to offload the remaining 100,000 metric tonnes of oil at the Dar port in-order to attain a total of 530,000 metric tonnes from the first tender consignment.
He said some of the achievements of the bulk procurement system were stability of fuel prices in the country, and the reduction of demurrage which has now stood at USD $5 a day instead of $30 a day that was previously being incurred.
The Energy and Minerals Minister, Mr William Ngeleja, said it was important that the government installed the mechanism like PIC to regulate oil importation in the country as petroleum plays an important role in the economy of Tanzania.
The Petroleum Importation Coordinator (PIC) was established in September 2010 under the  Petroleum Act with an aim of coordinating all issues pertaining to the bulk procurement of oil.