FOR the first time after ten years since its establishment, the National Investments Company Limited (NICOL) is anticipated to issue dividends to its shareholders.
The Chairman of the Board of Directors
of NICOL, Dr Gideon Kaunda disclosed at the company’s third Annual
General Meeting held in Dar es Salaam yesterday citing major changes in
the past few years.
“We have recommended for the
shareholders to make a decision today on whether the company should
distribute the dividends or maintain them for more investments. The rate
which has been recommended is 25/− for each share that has been
invested to the company,” said Dr Kaunda.
In his report, the Chairman said
previously the shareholders had expressed their concern on the company’s
protracted inability to pay dividends. He said that the outcome was a
consequence of bad investments made coupled with poor financial
mismanagement which shrunk the company’s investment income.
He pointed out that it is the company’s
aspiration in the next three to four years to increase investment income
and dividends payable on the average of 20 per cent annually and at the
same time return to the stock market by the next quarter of the year.
The Chairman of the Public Procurement
Regulatory Authority (PPRA), Ambassador Matern Lumbanga who was the
guest of honour at the meeting noted that the objective of establishing
NICOL was to economically empower ordinary citizens by acquiring a stake
in the economy of the country.
Ambassador Lumbanga said that the goal
and vision of NICOL is in line with the government’s development plans,
saying that major transformations recorded by the company in the
previous years are encouraging.
“The mischiefs experienced by the
company were a result of a few individuals but now that you are standing
again, you should not let the company return to that state again,
everyone should support NICOL to excel and be able to contribute to the
growth of the economy in the country,” said Amb Lumbanga.
He further pointed out that it is cited
in their annual report that NICOL has recorded an increase in its total
assets from 23.4bn/− in 2010 to 94bn/− in 2015.
On investment income, Amb Lumbanga said
the company has also recorded an increase from one billion in 2010 to
3.7bn/− in 2015. He said that the net asset value per share has gone up
to 344m/− to the former 2.2bn/− between the same years, and from 2010
onwards the company observed profit.
“Your decision to distribute dividends
is very recommendable, for it will not only bestow hope to your
shareholders but it’s going to encourage more people. For the company to
further progress, he said there is need to venture into lucrative
investments which are legally recognised.
On of the co−founders of NICOL, Retired
Judge Mark Bomani said that the company is going through a rebirth era
as earmarked in its objectives. He said the government backed the plan
because it believed that a collaborative approach was going to work
better when many people join hands for the sake of a better economy.
Majority of the shareholders were
pushing for the management of NICOL to clearly identify the specific
date when the company is going back to the stock exchange market.
According to Dr Kaunda, the company is
asking to be given until April next year to be able to clear the matter,
for the requirement is to go through a set of procedures that have been
underlined. Nicol was initially formed in 1999 by canvassing support
from various individuals.
The initiative gained support of many Tanzanians, leading to its incorporation as a limited public company under the Act.
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