Transcript Security Challenges and Threats in the Gulf : A Net Assessment

REACHING THE NEW HEIGHTS THROUGH
A NEW PARTINERSHIP between
TANZANIA AND TURKEY!
Nehemiah Kyando Mchechu. Director
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AFRICA THE FINAL FRONTIER
The Investments risk paradigm has shifted. Today the risk is not to invest in
Africa, but rather not investing in Africa!
Tanzani
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And this could be Africa’s Century!
The world’s leading investment analysts have
identified Africa as the NEW FRONTIER of
unprecedented economic growth driven by*
1.Commodities (minerals)
2.Oil and Gas (Hydro and Bio-Fuels too)
3.Agriculture (Land and Water)
4.Healthcare
5.Infrastructure
6.Telecommunications
7.Information Technology
8.Defence
9.Financial Services
10.Retail
*Merrill Lynch Thematic Investing Report July 23, 2007.
Africa: The final frontier.
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Africa has the youngest population in
the world, a potential opportunity…
Africa Youth Bulge Map
• Africa is the youngest continent with the Median
age<25yrs
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Uplifting the face of Tanzania &
The opportunity is even growing…
Urban population by Region, 2000 and 2030
North America
2000
2030
Latin America
Europe
Africa
Asia
0
500
1000
1500
2000
2500
3000
Population (millions)
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Welcome to Tanzania; the land of
Kilimanjaro,
Serengeti and “Zanzibar, the spice
islands”
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Financing Affordable
Tanzania Overview
MACRO INDICATOR TREND OVERVIEW
Kilimanjaro
Mwanza
2008
2009
2010
GDP Growth (%)
5.0%
5.0%
7.1%
Average exchange rate ( per US Dollar)
1293
1350
1435
Average annual inflation
13.5%
9.0%
6.0%
91 Day Treasury Bill Rate (Average rate)
11.3%
6.0%
4.0%
Average Base Rate (Minimum lending rate)
16.4%
13.0%
12.0%
Arusha
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Dar es Salaam

Historically Peaceful Power Transition
from one regime to another
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
Stable Government, Multiparty
Democracy,
Fourth Government Regime under
President J.M. Kikwete
Gold mining output 3rd largest in Africa
(~38.8m ounces)
Tanzania has unique (hyper)
growth opportunities in 8 out of
10 Commodities
sectors
1.
2. Oil and Gas (Hydro and Bio-Fuels
too)
3. Agriculture (Land and water)
4. Infrastructure for Tanzania and the
region
5. Retail (specifically Tourism)
6. Telecommunication
7. Information Technology
8. Financial services (Housing Finance)
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Tanzania’s
Industry!
Trillion Dollar Mining
Resource Name
Iron Ore (tons)
Tin (tons)
Nickel (tons of 2.8% Ni)
Diamonds (crts)
Coal (tons)
Gold (ozs)
Tanzanite (crts)
Confirmed Resource
Volume**
Resource Value @ 2007
Prices
1,500 million
250,000
144 million
51 million
1,500 million
1,000 million
50 million
TOTAL
*Excludes hydrocarbons, copper, gemstones and uranium
$168Bn
$3.5 Bn
$107 Bn
$244 Bn
$30 Bn
$650 Bn
$75 Bn
$1,279Bn
**Source : Opportunities for Mineral Resource Development
Ministry of Energy and Minerals. 2005.
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WE WANT TO BRING A HOPE AND SMILE TO EACH
HOUSEHOLD IN TANZANIA BY PROMOTING HOME
OWNERSHIP . A JOURNEY WE MUST TAKE…
TURNING A HOUSING PROBLEM INTO A GROWTH
OPPORTUNITY
Facts about the housing industry in Tanzania
• More than 99% of Tanzanian homes built out
of pocket
• It takes 5-10 years to complete a house
under the current system instead of 912 months
• the dead capital on stock of houses >
total bank deposits
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TURNING A HOUSING PROBLEM INTO A GROWTH
OPPORTUNITY
More facts about the housing industry in Tanzania
• Total housing deficit =
3m units or $
180bn, Demand = 200,000 p.a.
Or $
12bn!
Only second to Gold
• Industrialization and standardization in the construction sector held
back
• Urban population is approx. 37.5% and growing
• Current Housing deficit + annual demand + the
population growth + urban migration = Big
Hyper-Growth Opportunity That Tanzania can leap on it
Uplifting the face of
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Recent Developments Reforms in Tanzania
• Liberalization of the Banking Sector in 1993.
• Today, 42 banks operate in Tanzania from only 4 banks in
1993, and the credit expansion to private sector has been
growing at an average rate of 35% in the last 5 years.
• Review of the 2004 Land Act to cover for the Mortgage finance.
• There was no participation from Commercial banks in
Mortgage Financing because of the existing land act
• Commercial Banks concern have now been addressed and the
new mortgage finance law has been put in place, this has
encourage more banks to start offering mortgage finance
which is likely to address the Mortgage finance affordability as
we see more players
• Unit titles law (Condominium Law) has been put in place.
• This will allow for Developers to undertake big projects and
sale the apartment units.
• In turn, this will increase the affordability by reducing the inbuilt
cost of infrastructure.
Recent Developments Reforms in Tanzania
• Re-structuring of the Ministry of land especially on the title
registry section and decentralization of the power for
commissioner for land.
• This ought to increased the speed and efficient of issuing
and registering titles
• Introduction of the full fledged Housing directorate in the
MoLHHD
• Our Government is very focused on the housing sector,
the new directorate will play a key role on coordinating the
strategies and the plans execution.
Recent Developments Reforms in Tanzania
• A reform on Social Security funds and insurance regulatory
frame work that will allow for long-term financing to be
strategically channeled on respective long-term financing like
Housing Financing is underway
• The Government in partnership with World Bank has set the
liquidity facility to support the Housing Financing Lending
Institutions.
• Macro-Economic stability remains to be on focus
• Exchange rates: Tanzania has a reasonable FX reserves with the 4
months import cover.
• Interest rates: Good efforts in Lowering of Treasury Bills Interest rates
, currently at around 7%.
• Fiscal policy: There has been some good measures on increasing the
tax collection.
Affordable Housing - Key Challenges
• Housing Financing
• There’s still lack of depth of housing financing, where the maximum
tenor offered is 20 years and inactive capital market.
• House Supply improvement
• With the previous lack of Mortgage Financing, there was also lack of
Finance to Developers.
• Appropriate Technology
• Government support and other stake holders inputs is still needed in
most emerging economies to support the research and development
in the sector
• Public Awareness on the new laws
• There’s a public awareness campaign to educate the public on the
current key opportunities coming out of the new laws. The
Government through the MoLHHD is working on this matter.
• The Regulatory framework for Valuer’s, Developers and
property agency is under development
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•
•
•
•
Other
Regulatory
Pubic
Procurement
Act, 2004Key
issues
Public
Private Partnership Act, 2010
Labour Laws
Taxes and tax incentives
Contractors and professionals registration
boards
• International Contractors and consultants can be
temporarily registered on winning a contract
Uplifting the face of
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Building Materials
• Cement, paints, iron sheets, steel – opportunity for expansion
and investment
• Tiles, electrical, sanitary appliances, data/electronics – imported
Uplifting the face of
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Equipments & tools
• Earth moving – bulldozers, scrapers, loaders, rollers
• Transportation – dump trucks, crane trucks
• Hoisting – cranes, construction lifts, construction hoists
• Concreting – mixers, pumps, concrete trucks
• Tools – vibrators, compactors, power float, breakers
• False work – scaffolds, formwork
Uplifting the face of
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General market conditions
• Local skills available
• Engineers, architects
• Technicians
• Competitive market
• Construction – companies from China, RSA, Italy
• Consultants - from Europe, Asia and Africa
• Fund repatriation
Uplifting the face of
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REACHING THE NEW HEIGHTS WITH
FRESH THINKING.
-
“NHC is The Hidden Gem”
WE WANT TO TRANSFORM “nhc” TO BECOME
THE ENGINE OF OUR ECONOMY.
All Rich people have either made their wealth from Real Estate or Kept it in Real
Estate, No one should be left out
Nhc overview & Situational Analysis
1. The current property stands at 2,389 buildings with 17,111
units
2. Our Capital Base stands at about USD 1 billion
3. We’re the largest Company in Tanzania and in East
Africa by Capital Base (Private Companies, PLC, & State
Owned Companies)
4. East Africa Market comprise of 5 Countries with the
Population >100m
5. NHC is one of the top 3 Real Estate Companies in SSA
by Capital Base
6. We have an independent Professional Board and
Management Team
7. There is a very strong Political will to support NHC and
the Real Estate Sector in order to promote Home
Ownership
NHC must play A KEY leading ROLE ON AN
INTERIM PERIOD.
1.
2.
3.
4.
5.
6.
NHC has been in the market for more than 48 years.
NHC has a strong capital base from its stock of
houses that is estimated to be in excess of USD 1
billion.
NHC can upgrade some of the existing houses and
sell them at the real market price and therefore make
more money that can be ploughed back and be used
for the constructions of new houses for sale and
therefore enabling more Tanzanians to own Houses.
NHC has the ability to raise the medium & long-term
liabilities from the Capital market due to its credibility;
NHC has a good distribution across the country, of
which if properly exploited, it could easily help to drive
the development of the housing industry across the
country.
The goodwill of NHC is such a special assets which
has not been tapped at all; both borrowers and
lenders are more comfortable to deal with this
name
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Uplifting
thebalance
face of Tanzania
& and its
due its historical
nature,
sheet size
WHAT are the key BENEFIT to NHC for
taking the key leading role?
1. Efficient utilization of NHC resources to
ensure that, the organization raises the
capital from within and operates profitably.
2. Country Economic benefits ranging from
job creation, citizens life improvement, a
stable/peaceful and harmony society,
increased tax collections, an opportunity for
consumption market of utilities and
households etc.
3. Housing for all; NHC can help a great deal
on supporting the housing for all agenda
4.
Formalization of the Economy:- The mortgage
lending and hence home ownership will foster
the credit accesses to Tanzanians, and hence
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help on widening the Tax base.
WHAT are the key BENEFIT to NHC for
taking the key leading role?
5.
6.
7.
Broadening the focus of NHC beyond their
seemingly current main business of house
rental to massive house development for sale
as per the new Act!
Allow NHC to play a key role in establishment
of the secondary market for houses to carter
for the transitional period.
Give NHC a Pro-actively key role of
coordinating the efforts of different
stakeholders within the sector i.e. Financial
Institutions, Various professional boards, and
research and development firms/companies
dealing in housing industry.
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Vision Statement
To be a leading Real Estate Development and Management firm
Mission Statement
To provide and facilitate the provision of quality housing and other
buildings for use by the general public while operating on sound commercial
principles
Core Values
Our Core Values evolves around Integrity, Transparency,
Efficiency, Team Work, Professionalism and Innovativeness
•
•
Statements of Core Values
Professionalism: We will always perform commercially while adhering to
ethics
and upholding quality and standards.
Efficiency:
We will always satisfy our customers by delivering services
skilfully and timely.
Team work:
goals.
We will always work together to achieve our corporate
Innovativeness: We will always develop new methods and ideas that will
bring
positive changes in the organisation.
Transparency: We endeavour to convey correct, timely and complete
information about our services and products.
Integrity:
We will always be credible and consistent in our actions.
“P E T I T I”
The Strategic Plan – key goals
•Goal - This plan has six major Goals
1. To become a leading real estate developer.
2.To become an efficient real estate manager.
3.To strengthen operational capacity and control mechanism.
4.To optimally deploy human resources base.
5.To review and improve the all contracts and legal
6.To boost the corporate image
•
GOAL ONE: To become a leading real
estate
developer
: medium and high class houses for
•1) To construct
a minimum of 10,000
sale and lease by June 2015.
•Rationale:
•Despite the enormous demand for houses in Tanzania, which is in a tune of three
million and growing at a rate of 200,000 units per annum, NHC has not been able to
undertake mass housing schemes due to lack of conducive funding environment. The
changing funding environment coupled with housing shortage will now enable NHC
to undertake massive construction of houses.
•2) To construct a minimum of 5,000 units of social housing by June
2015.
• Rationale:
•Provision of social housing is necessary in order to uplift the living conditions of the
low income group. However, NHC will only participate in provision of social housing
if it is assured of at least to break even. Otherwise, the government is also expected to
participate by granting subsidies or setting up a special programme.
GOAL ONE: To become a leading real
estate
3)
To play a roledeveloper:
of a master developer by June 2013.
Rationale:
In its other role of facilitating the provision of housing and other buildings, the NHC
endeavors to become a “master developer”. It will acquire parcels of land, plan and service
them. Furthermore, it will sell some of the projects to other developers and retain some for
its own development. It will also ensure that other developers comply with development
regulations and standards.
4) To mobilize investment funds to the tune of TAS 1.5 trillion by June 2015.
Rationale:
In order to achieve the target of constructing a minimum of 15,000 units, mobilization of
funds is necessary. Funds will be mobilized from different local and foreign sources. NHC
will use its property wealth to leverage these funds and service the costs of loans.
5) To embark on intensive marketing of houses constructed for sale by Dec. 2010.
Rationale:
Aggressive marketing is necessary in order to appreciate the market needs, tastes, life style,
spending patterns, fashions as well as creating interface between buyers and banks so as to
stimulate demand. NHC shall commence serious marketing strategies to ensure business
continuity.
What do we want to achieve
1. We are looking for interested partners who are
willing to partner with NHC in Tanzania to
develop the Housing sector either as
Contractors or Investors.
2. We are looking for the right partners to support
Capacity Building and where possible support
other key stake holders on the Housing Sector in
TZ
3. We want to learn on how the Turkish People
have been able to achieve the efficient and
effectiveness in the construction Industry on
three key pillars i.e. Time, Quality & Cost while
Business opportunities
• JV/PPP with NHC – residential
housing, retail & office space
• Contracting and consultancy
opportunities
• Building materials, equipments and
tools
Uplifting the face of
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We encourage all interested partners from Turkey to come to
Tanzania and benefit from key Reforms that the Country has
Undertaken. Join and Support our efforts of creating more
Affordable houses while also creating your good returns.
Welcome to Tanzania; the land of
Kilimanjaro,
Serengeti and “Zanzibar, the spice
Tanzani
islands”
a