DODOMA: THE Government through the Treasury Registrar and co-shareholders of Mbeya Cement Company have signed an agreement intended to increase the firm’s profit and management performance.
The agreement was signed by the Treasury Registrar (TR) Mr Nehemia Mchechu and Mr Rajesh Surana of Mauritius Pan Africa Cement on behalf of other shareholders, namely NSSF and Zambia’s Lafarge.
Mr Mchechu said the new MoU and articles of association for the Mbeya Cement have been sealed after the government relieved the company from 170 bn/- debt and reinstated its mining licenses for increased productivity.
“Under the agreement, the company’s Board of Directors will be reformed, the government will appoint the board Chairperson, formulating new constitution and harmonising the mining licences,” said Mr Mchechu
The shareholders and their shares in percentage in brackets are Mauritius Pan Africa (51), TR (25), NSSF (10) and Zambia’s Lafarge Cement (14).
The amendments are made to increase efficiency and productivity and make profit, said Mr Mchechu, noting that they now rebuild and reform public institutions and parastatals where the government is among shareholders.
The agreement also intends to revolutionise operations and management of Mbeya Cement Company limited and capture local and international markets by addressing all challenges that were a stumbling block.
Mr Mchechu expressed the government’s commitment to empower all companies where it has both minority and majority shares to prosper, refrain from operating on loss and contribute immensely to national development.
He added that the ongoing reforms are part of the implementation of President Samia Suluhu Hassan’s directives to reform and rebuild entities that the government owns shares for sustainable development.
“We want the government shares in joint venture companies to be between 20-49 percent so that the private sector can be active to improve efficiency,” said the TR.
He noted that the government did what was required in the process to improve performance of Mbeya Cement, including settling a long-time land conflict to improve operations in supplying cement in the southern region of Kigoma, Katavi, Rukwa, Songwe, Mbeya, Njombe and Ruvuma and neighbouring countries of Democratic Republic of Congo (DRC) and Zambia.
Speaking on behalf of other shareholders, Mr Rajesh Surana, Area Manager of East and South Africa HOLCIM GROUP, thanked the government for the efforts aimed at rejuvenating the company and enabling it to operate profitably.
“It is another milestone as we today sign the agreement on behalf of other shareholders aimed at ensuring that Mbeya Cement Company operates on profit to rebuild growth for improved performance” said Mr Surana
He said the agreement will allow Mbeya Cement Limited to bring positive changes to ensure the company serves customers in a better way and shareholders are deemed to get the rightful services as the company prospers.