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Friday, 11 September 2020

WHY THE STOCK MARKET IS THE RIGHT PATH TOWARDS YANGA AND SIMBA’S FINANCIAL FREEDOM

By Godwin Semunyu

Soccer goes down to the roots of Tanzania’s history. It is through the soccer fields in Jangwani and Kariakoo that the late Mwalimu Nyerere and the TANU comrades converged with the locals during the freedom fighting movements.

In Tanzania, whether you are a sports fan or not, you are somehow expected to support one of the two teams of Yanga or Simba. A friend once joked that we are first Tanzanians, then we mention our tribes, followed by our support for either of the two teams. I see no lie. Each club is estimated to enjoy a fan base of between 15-20 million followers. One of the biggest in Africa.

However, with all their mighty brand prowess and lucrative fan bases, Simba and Yanga are still living in the world of financial dependency. Relying heavily on funds from sponsors and “wafadhili,” in exchange for advertising values.

Leveraging on their brands’ equity, they are without a doubt the “adverting heavens” to most local businessmen. Perhaps that is their blessings in disguise. As a result, the clubs have developed a tendency of over-reliance to sponsors and individual benefactors, with minimal revenue alternatives, a recipe for the rise of a solo voice, with financial muscles, to take the helm.

The downside to this situation, however, is the fact that it lacks a going concern and sustainability. When the dominant voice stumbles, so does the entire institution. Yanga fans learned the hard way when their previous benefactor stepped down abruptly. Within three months, they went from being the richest club in East Africa, to a club pleading for fans’ contributions to pay salaries.


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