STRATEGY AND PERFORMANCE
CHIEF EXECUTIVE OFFICER’S REPORT 1. INVESTMENT ENVIRONMENT
The investment environment in the Country is very conducive and attractive to both foreign and Local investors. The economic growth of 6.8% that was achieved in 2019 is a good proof that Tanzania is on the right track of Development. Despite the challenges like the “Covid 19” Pandemic, still there are many sectors that continued to perform well. Especially the Banking sector; The example of NMB to achieve Earnings Per Share (ESPS) of TShs. 103 in the 3rd quarter of 2020 compared to TShs. 50 EPS of last year in the same 3rd quarter; and CRDB with EPS of TShs. 19.1 compared to TShs. 11.9 EPS of the same period, that is an indication of a better money circulation in the economy compared to the past. The World Bank also has recognized Tanzania’s remarkable economic growth by promoting it into the middle income per capita of US Dollars 1,080 in 2019. Other economic factors that make Tanzania’s investment environment to be good include: The Dar es Salaam Port being the Central hub for all East and Central African Countries; The development of economic infrastructure such as National and International Road Network, Construction of the Standard Gauge Railways (SGR); Electrification of the entire Country both Rural & Urban areas; Construction of the Nyerere Dam at Rufiji River; The launching of Oil Pipeline construction from Uganda to Tanga Port in Tanzania; The booming of mining
sector; Tourism development; The Discovery of Natural Gas along Lindi-Mtwara Corridor; A better and peaceful political climate, all these and others more, are making Tanzania with a good investment environment; to all investors, both local and foreign. 2. NICOL INVESTMENT STATUS: 2.1 INVESTMENT DIVERSIFICATION
The company is in the process of restructuring its share investment portfolio which is worth TShs 83,699,181,100 (at market price valuation) by selling some of its NMB shares and diversifying into other investment opportunities available in the market in order to: (i) Minimise the risk of skewed share investment portfolio in NMB shares. NMB shares account over 90% of the total portfolio investment value. The remaining 8 share types each accounts between 1.7% and 0.05% in exception of TBL shares which account 4.7 % of the total share portfolio value. (ii) Increase earnings to the company by investing in other investment assets that can create additional income to the company in terms of profitability, and consequently pay more dividends to NICOL shareholders. Targeted investments include:` shares that can pay higher dividend yield per share; Investment in Bonds that pay higher returns per shilling invested; Real Estate investment; Agricultural processed products; Microfinance; Mining and many others as
The World Bank also has recognized Tanzania’s remarkable economic growth by promoting it into the middle income per capita of US Dollars 1,080 in 2019. Other economic factors that make Tanzania’s investment environment to be good include: The Dar es Salaam Port being the Central hub for all East and Central African Countries Arphaxad G.A. Masambu Chief Executive Officer.
NATIONAL INVESTMENTS PLC Annual Report
2020
17
