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TIBIYO INVESTEE COMPANIES PUMP IN E162M

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MBABANE – Tibiyo TakaNgwane raked in E162 million as dividends from investment companies during the 2017 financial year.

This sum was received from investments at it’s over 20 companies where it owns shares. These companies include, but are not limited to; Royal Swaziland Sugar Corporation (RSSC), Ubombo Limited, Nedbank, Eswatini Finance Development Corporation, Maloma Colliery Limited, Parmalat Eswatini, Royal Swazi Spa Holdings Limited and Tibiyo Properties Limited.
In the annual report for the 2017 financial year, Chairman Prince Fipha reported that revenue from third party managed projects increased by 18 per cent. It rose from E93.5 million in 2016 to E93.5 million in 2017.

He said interest received from investments increased by 37.8 per cent from E4.7 million to E6.6 million while dividends received from investments showed an increase of 36.7 per cent to E162 million from E118.5 million. It was mentioned that the investments committee comprised three members during the reporting period. They were: Vusi Fakudze, who was Chairman, Sigodvo Motsa, and Lindiwe Dlamini. It was clarified that this committee advises management on the placement of organisational funds. It also advises management on proposed new projects before they are brought to the main committee for approval. It was pointed out that Additional adhoc members can be co-opted as and when necessary.

Overall, Tibiyo saw an increase in revenue from E239 million in 2016 to E300 million in 2017, a 26 per cent increase. The main contributing factor to this growth was the increase in dividends received from investee companies. Some of the investee companies, especially in the sugar industry, who adopted new strategies to counter the prolonged drought effects, were able to reap positive spinoffs, which saw them achieving budgeted profits, which was commended. Revenue comprises revenue earned from sucrose sales, share of partnership earnings, interest and dividends earned from investments. Revenue from the sale of sucrose was recognised in the statement of comprehensive income when significant risks and rewards of ownership have been transferred to the buyer.

 

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