TAZAMA Pipelines, a joint venture between the Governments of the Republic of Zambia and the United Republic of Tanzania, has handed over its FIRST EVER DIVIDEND Cheque to Zambia, 50 years after the establishment of the company in 1968.
According to a statement issued by the Ministry of Finance, a K6 million cheque, representing two-thirds portion of the dividend, was received by the Minister of Finance Hon. Margaret Mwanakatwe who is the shareholder in TAZAMA on behalf of the Republic of Zambia.
Tanzania will receive K3 million, proportional to its shareholding in TAZAMA.
“18 months ago, President EDGAR CHAGWA LUNGU and his Tanzanian counterpart PRESIDENT JOHN MAGUFULI both expressed concern about non-performing State-Owned-Enterprises. This was during President Lungu’s visit to Tanzania.”
Mrs. Mwanakatwe said the dividend declaration is a pleasing response to the concern raised by the two leaders as it demonstrated the positive impact that good governance practices can achieve on institutional performance.
“TAZAMA is a success story of friendship of the two Presidents and of hard work of the peoples of the two nations; it is a success story of corporation by neighbouring countries and presents a model of how peaceful relations between countries can culminate into positive developments,” stated Mrs. Mwanakatwe.
She added that “this event speaks positively of Government to Government business cooperation and negates the notion that Governments are unable to do business together and create wealth for their peoples.”
And Energy Minister MATHEWS NKHUWA has said Government’s aspiration for the Petroleum sector is to ensure an adequate reliable and affordable supply of petroleum products.
“To achieve this, it is imperative that all players in the sector are well aligned to this policy objective,” he said, adding that, “a number of reforms are being pursued to ensure that we have a vibrant petroleum sector and satisfy the demands of the country so that economic growth and development are propelled to greater heights.”
And TAZAMA Board of Directors Chairperson Brigadier General Emeldah Chola [Retired], who is also Zambia’s Ministry of Energy Permanent Secretary highlighted that TAZAMA recorded a profit before tax of K50.4 million in 2017, an increase of 104% from 2016.
She attributed the positive result to improved throughput and prudent cost management measures put in place by the Board and Management to improve the performance of the company, and added that: “TAZAMA has opportunities for improvement, diversification, and modernization of business operations.”
“This will be done through a number of projects that TAZAMA intends to embark on such as pipeline expansion, construction of a finished products pipeline, and installation of a fiber optic infrastructure,” she said.
K6 000 000 only since 1968? Joking right?
It’s almost a white elephant.
Not only joking since 1968, but also what is K6 million for an investment of K1 trillion?
Tazama shall be closed. On the basis of a pre-agreed formula private sector shall do the import and distribution of processed petrol, diesel and kerosene.
Importing oil from Tanzania for northern provinces is cost effective as is from Mozambique for Eastern Province, Botswana/South Africa for Southern province.
And this is another reason why Govts have no business in running some of these entities imagine how many times crude oil barrel price has hit highs since 1968 then these guys come with a small cheque as if its a comedy.
And I wonder when their National Airline will ever record a profit in my lifetime!!!
Really??? How do you explain protestations from their employees of failure to pay them ?? next it will be Times of Zambia claiming to pay a dividend. This company on the Zambian side seems to have failed to perform well so it is not even a PF issue but what I am seeing with the PF is they are good at glossing over issues … even Zamtel with all the mess paid a dividend. Understandably the glossing over can be played by the shareholder by claiming to reinvest the dividend in the company so in essence retiring it to being a symbolic gesture … of which it is
I dont believe Tazama has made exccess or surplus earnings for it to declare a dividend otherwise they would be also telling us the figures that have allowed them to give out a dividend to the shareholders
She is not even ashamed of herself? Since 1968? This is a joke. We have to be serious. That’s like $600,000 to mean $300,000 for each country?? Nonsense.
@Dontcare, i was wondering the same since 1968 only that amount. This is an indication that the venture between Ethiopia and Zambian for the airline will be the same, these are the signs and people or rather Cadres are still in support of the airline to come back. What will be happening with Zambian airline will be the same, the government will be pumping in money to keep it going until that time will come to give up.
Nga lyonse ili ulupiya mwaletwala kwi? Thanks to Tazama for this positive move. Now you listen to me. During this trying moment you have proved that you can make profit. Nothing should change from now on. If any thing, the next amount must be much higher than this peanut. We real thank Mugufuri because him is .nonsense’. Please Mugufuri come in for Tazara now because we know on the Tanzanian side Tazara performs relatively better. Kuno ubupuba bwachilamo.
Because you are being deceived bwana by this government ask for the full statements of these companies balance sheet, income statement, cashflow etc. then you can justify your statement concerning the previous regimes dont benchmark when you dont have the full picture of the companies performance. A dividend as I have indicated above can even be symbolic. You do realize for instance that a loss making company can be performing well on the stock market and actually earning shareholders a fairly healthy return of course with certain factors considered by traders
KK, FTJ, Mwanawasa, RB all these dudes failed but under ECL Tazama has managed to do pay K6 million cheque, representing two-thirds portion of the dividend.
It will triple when you vote wisely next time! Vote for you know who…. one and only….. Mr. Will Fix It
Little or nothing will get into GRZ coffers proper by way of cash inflow into the budget because of late MCS’s IDC Ltd where ECL himself is board chairman. This is an absurdity since ECL has presidential immunity but the last time I checked company directors are amenable even to court action under the Companies Act for their actions or omissions on company boards. But this is Zambia where the law does not matter as the judiciary itself reminds us in some of its judgements. The dividend will go into the IDC bank account where it will be spent on running 4x4s for the executives, allowances, resuscitating Times of Zambia, talk time and all that jazz.
Shut up bootlicker.
Mwanakatwe is an *****, wasting time on receiving and posing for the cheque.
She is paid to work and not to pose for useless activity.
How much the thugs of Tazama spent on visiting Lusaka to give her the cheque. Is the daily allowance, staying in a hotel, petrol on vehicle coming from TAZAMA’s boss travelling to Lusaka?
What about two days he wasted doing nothing in Lusaka?
Why is Zambia poor?
Because of such visionless executives, politicians and their bootlickers
Chanchima , you are speaking the bitter truth.
IDC is a white elephant and another stupidity of politicians to enrich useless, visionless thugs who have no shame to sit on such useless institutions that will eventually disbanded after looting billions from the treasury through allowances, salaries, travel and on top of that all parastatals will be leeches, sucking blood from employees paying PAYE at 37.5%.
How much tax Mr. Lungu pays?
How much tax Mwanakatwe pays?
NIL
Nada
Zero
Magufulinomics!
That is how it is done!
It’s because President John Joseph Magufuli is not corrupt like kaNyerere.
Zambia Airways ,if it ever comes back to life ,will never pay a dividend even in 50yrs i can betcha .
That’s the Zambian Enterprise for you ….first ever dividend of K3 million since 1968 for a pipeline that has been pumping black liquid gold…really laughable..I guess job creation is much more important to these dingbats!!
Jay Jay: Truth is it has been profitable but they just never declared a dividends.
Tula twabanee fwe ma members…
“18 months ago, President EDGAR CHAGWA LUNGU and his Tanzanian counterpart PRESIDENT JOHN MAGUFULI both expressed concern about non-performing State-Owned-Enterprises. This was during President Lungu’s visit to Tanzania.”
If lazy Lungu was really concerned about non performing state entities …companies like Zamtel,Zesco etc in Zambia would be under pressure…. this has the Mugufuli no nonsense touch about it.
Well better late than never, great return on investment!!!!! K120,000 a year or $USD11,707 a year.
I am sure if you went and looked at the Director’s company vehicles at H/Q car park, you would think again about that figure you have mentioned.
This can only be due to the leadership of the Magafuli, the bulldoser.
Next is TAZARA. Our partners in TZ just pumping a huge amount of funding for the rail line. I can bet that the drag will be south of Nakonde.
You don’t need to pay dividends. That’s a recipe for disaster if payment is made the first time a company makes a profit. If you think the company is now turning around
rather reinvest the profits to stabilize it before you start paying dividends to sharehokders. If I was a shareholder I would be very worried about these fake dividends now than before. Next we will hear they want more funding from shareholders for further investments and they will rush to pump in more money believing the company is doing better.
1968? Before I was even born and no dividend? Abasungu ngakale baisala kampani
Wow! What inefficiency! Anyway, better late than never! Better a dividend than hide it in Panama.
Lazy bum polygamist father of a tribalist son and chief hooligan and bully of the Childish tribal party wing still can’t get it because of their insolence and dull minds! HaTribes!
Haha how convenient that after all these years without profit, they suddenly make one after the 2 presidents raised their concerns! It’s obvious they have been making profits but not declaring it. Makes me sick the amount of corruption in our beloved country.
Jay Jay – my comment was this is a joke K120,000 a year return per year for the last fifty years and the investment was over 1 billion Kwacha and how much oil has gone through that pipe in 50 years, even that dividend amount for 1 year is below a return on investment $11,000 US is a joke it should be at least 1cent per litre of oil that goes through the pipe as a royalty .
This money is not even enough to buy 1 fire tender. K6m is equal to $0.6M.
Thinking profit all the time. Thinking State house all the time. Service first is essence. Profit is last thing on table for any enterprise especially public enterprises in unattractive sectors with decades or centuries break even points. This internet would not be here if the inventors thought profit first. Can the services of TAZAMA & TAZARA through trying times of liberation and sanctions be equated to petty profit? It’s benefits are in billions. Now it ensures just tax is paid for the proliferating oil companies owned by Kainde types.
UPNDs shouldn’t come across like myopic pathetic souls. Even toilet paper should be bank notes from profit?!! Everything will be auctioned to lowest bidder if they take over power like during Privatisation.