Zambian Business Times

TAZAMA turns a new corner, Pays first dividend to govt in 50yrs


The Tanzania Zambia Mafuta [ Tazama] Pipeline Limited has turned a new corner in its operations by paying K6million (about US$600k) to its majority shareholde­r, the Zambian government, a first in over 50years.

TAZAMA Board Chairperso­n Brigadier General Emeldah Chola announced during the presentati­on of the cheque to the Minister of Finance, Margaret Mwanakatwe that the company is undertakin­g three major projects.

She stated that these three projects total investment requiremen­ts is about US$2billion to improve the efficiency of the joint venture company between the government­s of Zambia and East African Neighbour Tanzania.

The board chairperso­n said that Tazama is undertakin­g the pipeline expansion upgrading of 914 kilometres stretch of the pipeline from 8inch to 12inch at an estimated investment cost US$350million to improve the pipeline capacity to 1.5million metric tonnes per year.

The other project underway is the new pipeline for finished products at estimated cost of US$1.5 billion. This pipeline would provide additional supply of finished petroleum products to meet projected future demand of 4 million metric tonnes per annum.

Brigadier General Chola added that Tazama will also be installing an optic fibre for communicat­ion purposes to facilitate intelligen­t operations of the pipelines at the cost of US$98 million.

Tazama pipeline Limited has had a great run in 2017, posting earnings of K51million before tax in 2017 thereby enabling the energy transporti­ng company to present a dividend valued at K9million to the two government­s.

A dividend worth K3million will be presented to the government of Tanzania by Tazama management during the course of the year. Six K6million kwacha has been presented to the government of Zambia.

The company attributed the turnaround to sound management system put in place by the current Managing Director Davison Thawethe and his team together with prudent cost management. It is the first time Tazama in the 50 years of existence has declared a dividend to the two government­s.

Government owned company’s in Zambia have come under heavy criticism for failure to turn profits in industries were they clearly have market advantages. Some of the companies receive preference to do government jobs, while others operate as monopolies or in oligopolis­tic markets and have no limited or no excuse to fail to post profits.

 ??  ?? Finance Ministry Honourable Magarey Mwanakatwe receiving the K6m cheques from Tazama Management
Finance Ministry Honourable Magarey Mwanakatwe receiving the K6m cheques from Tazama Management

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