Tanzania Fund Says Assets to Reach 2.2 Trillion Shillings

Tanzania’s National Social Security Fund said its assets will expand 29 percent in the 12 months through June 2013 as investments surge.

The state-run fund will grow to 2.2 trillion Tanzanian shillings ($1.3 billion) from 1.7 trillion shillings a year earlier “due to increasing contributions from members and investment income,” Director of Finance Ludovick Mrosso said in an interview today in Dar es Salaam, Tanzania’s commercial capital.

The fund, the biggest in the country, had 550,000 members as of March and the number may have risen to 600,000 by June, Mrosso said.

Investments, which include a power plant and a bridge, will rise to 2.85 trillion shillings from 1.6 trillion shillings, he said. Investment income is expected to climb 52 percent to 147.6 billion shillings, while annual contributions are seen rising 23 percent to 594.1 billion shillings, he said.

The fund has called for bids to develop a 200-megawatt power plant in Mkuranga, 21 miles south of Dar es Salaam, which will supply the capital.

“We expect to procure a consultant for the project by August,” Mrosso said. The plant will use natural gas from Mtwara, 228 miles south of Dar es Salaam, once the offshore terminus there is operational, he said.

The China Railway Construction Engineering Group and China Major Bridge Engineering Co. are jointly building a bridge that will cost 214 billion shillings. When completed it will link Dar es Salaam to Kigamboni island east of the city.

To contact the reporter on this story: David Malingha Doya in Dar es Salaam at dmalingha@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net

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