Ministers hail TIPER, PUMA and NMB Bank performance

11Jun 2016
Our Reporter
Dodoma
The Guardian
Ministers hail TIPER, PUMA and NMB Bank performance
  • …as microfinance bank eyes to double profit by 2020

THREE ministers have hailed the performance of the managements of three companies and a bank in which the government owns shares for their excellent performance in 2015 after the three entities gave dividends valued at Sh23billion to the state.

Minister for Finance and Planning Dr Phillip Mpango

Minister for Finance and Planning Dr Phillip Mpango, Dr Charles Tizeba, Deputy Minister for Trade and Industries and Deputy Minister for Energy and Minerals Dr Medard Kalemani showered praise at the three entities, ordering other parastatal organizations and companies in which the government owns shares to do the same.

“You have made my day. I am so happy. Now, I am going to be the Minister for Finance and Planning and not the minister for debts”, Dr Mpango joked after receiving the dummy checks from the three organizations.

Tanzania International Petroleum Reserve ( TIPER) Limited presented to the government a dividend of Sh2 billion after performing well in business while National Microfinance Bank NMB) Limited presented a dividend of Sh16.5 billion.

PUMA Energy Tanzania Limited presented a dividend of Sh4.5 billion. The money will enter the government coffers to finance new budget presented by Dr Mpango on Wednesday.

The previous year PUMA presented a dividend of Sh3 billion to the government. The government has a total of 50 per cent shares in PUMA.

Dr Mpango said the government would continue creating favourable environment for the businesses and investments to prosper in the country.

Dr Kalemani said by being able to provide dividends of huge amounts of money to the state it gives a signal that the government invested in the right entities.” We congratulate you,”.

Trade and Industries minister Dr Tizeba also congratulates the three entities for their excellent performance in 2015.

NMB Chief Executive Officer Ineke Bussmaker said it was in the best interest of the bank to double profit in 2020 so that it could dish out a dividend of Sh33 billion to the government.

“We are strong a bank with a strong balance sheet”, Bussmaker said. According the CEO, Tanzania has conducive environment for the banking sector to grow.
According to Bussmaker, the government is the largest customer. The government has 31.9 per cent shares in NMB Bank

For his part PUMA board Chairman Dr Ben Moshi said the company recorded a profit before tax of Sh 31.5 billion for the year that ended on December 31, 2015.

He said the energy company invested massively during 2015 to further improve its local infrastructure and asset base so as to reinforce its footprint. For his part, TIPER board chairman Prof Abdulkarim Mruma said the firm with a total number of 56 direct employees has so far dished out to the government a total of Sh6.4billion in dividend from 2010 to this year and has paid a total of Sh13.5billion as corporate tax during the same period.

Speaking of the firm’s potential to receive all bulk procurement products and associated benefits for the government, Prof Mruma said in most places in the world, fuel imports are received into a single terminals as it’s the most efficient and economical way of doing the operations which is not the case in Tanzania.

“The main advantages of using single terminal include, TIPER can receive a full 90,000tons diesel vessel from Single Point Mooring at 2000/T per hour: meaning a full vessel can be discharged in 2-3days.Currently a full vessel takes between 8 to 10 days to be discharged,’’ he mentioned while adding that demurrages for such vessels are at $30,000$ per day hence saving eight days would save $ 240,000 per vessel to the country and the end consumer.

He further added that when a full ship is discharged into a single terminal, it’s easy to control the quantities received as authorities can assign as many controllers they need in a single place.