SONGAS PAYS TZS 11 BILLION DIVIDEND TO GOVERNMENT

Dar es Salaam, 28 November 2017 –Songas Limited, the country’s leading Tanzanian gas-to-power company, has paid the government TZS 11.6 billion, in dividends as a result of its shareholding in the Tanzanian gas-to-power company.

Songas Limited is a strategic partner with the Government in meeting the growing demand for energy and includes ownership by Tanzanian sector entities, Tanzania Petroleum Development Corporation (TPDC), Tanzania Electric Supply Company Limited (TANESCO) and Tanzania Development Finance Company Limited (TDFL) as well as Globeleq, a leading independent power producer solely focused in Africa. 

Songas Limited Managing Director, Nigel Whittaker, said TANESCO will receive TZS 2.9billion while TPDC will receive TZS 8.7 billion, both amounts being net of withholding tax.  The amounts are determined by each entities shareholding in Songas.

The government also benefits from its 32% shareholding in TDFL, which receives TZS 2.3 billion in dividends.  Furthermore the government, via TRA, benefits from the withholding tax on dividends.

“Since 2004, Songas has been helping to power Tanzania’s industrialisation by providing approximately 20% of reliable and cost-effective electricity to the national grid, in addition to supplying natural gas to various manufacturing operations in Dar es Salaam. 

Songas offers an alternative and affordable form of energy and positions the company as an important regional energy producer” said Mr. Whittaker during the cheque handover to the Treasury Registrar, Dr Oswald Mashindano, in Dar es Salaam today.

Songas is currently the cheapest thermal generator of electricity in East Africa.

By using domestic gas instead of imported fuel, TPDC estimates that since Songas began its operations in 2004, it has saved the Tanzanian economy more than TZS 11 trillion.

About Songas:

Songas is a leading Tanzanian gas-to-power company generating 180 MW (approximately 20%) of Tanzania’s electricity which is supplied to the national grid and distributed by the national utility, TANESCO.  It also supplies natural gas to industrial customers to use in manufacturing processes.