One of the surest investments in Tanzania, which is fool proof, is Treasury Bills as they are guaranteed wholly by the government.
They are lucrative as the interest rate is always higher than the percentages offered by commercial banks for deposits.
A fixed deposit will earn mostly up to 7 per cent interest per annum while the same investment in T-Bills will earn 12-15 per cent.
More so the bills are easily liquidated in the stock market as the demand is always high.
Commercial banks and big investors always romp home huge profits made from buying the precocious papers from Bank of Tanzania (BoT).
The T-Bills are used by the government through BoT to raise credit locally.
In the past the business was a domain of huge companies or very rich individuals as the cheapest bill could only be bought at 50m/-.
Recently, things changed and to ensure more companies and individuals participates in the T-bills market, BoT lowered the units to 5m/-.
According to Dar es Salaam Stock Exchange CEO Jonathan Njau, now more Tanzanians and medium sized companies can participate in the trade.
In a story in our sister paper, The Financial Times, Njau calls on BoT to reduce the minimum amount needed for trading in the bills even further.
We support the lowering of the amount to 5m/-, and congratulate BoT for the well thought out move but, like Njau, we feel the amount is still on the higher side for majority Tanzanians.
We feel that it would be better to break up the units to, say Tshs. 500,000 an amount which ordinary business people and workers can afford. If BoT would consider such a proposal, it would be doing a great service to our nation.
It is apparent many banks in Tanzania pay as little interest as 3 per cent per annum for deposits in ordinary savings accounts.
The amounts saved could be small but considering the huge number of savers in all commercial banks, that is why the financial institutions can afford to re-invest the same money in treasury bills.
If BoT would lower the minimum cash for buying the bills as we have suggested, it would force banks to raise interests on deposit and in the long run it means prosperity for more Tanzanians who will get the true value for their savings.
Trade exhibition brings business world to Tanzania
All roads lead to the Diamond Jubilee Hall in Dar es Salaam today where the East African international trade exhibition is taking place.
According to the organizers of the exhibition, there will be something for everybody and mentioned equipment and machinery for sectors like building, food, packaging, IT, industrial, medical etc.
The countries that would take part in the exhibition include Kenya, South Africa, Malaysia, Singapore, UAE, Italy and Egypt.
Others are Turkey, Hong kong, Taiwan, Thailand and Zambia among the 19 countries in the exhibition.
We think the exhibition will be an eye opener to those who will spare some time to visit the venue, for serious business purposes or for just ’window shopping.’
When such huge collection of goods is brought to our doorsteps, it is only prudent that we make full use of it.
Many people would agree that it is not possible for one to travel to all the 19 countries taking part in the exhibition for shopping or sampling of goods for those who wish to import into the country.
We believe that there are many things to learn from the exhibition and we urge Dar es Salaam residents to turn out in their numbers and see for themselves what will be on display.
