The first oil and gas Company to list on the Dar es Salaam Stock Exchange, Swala (Tanzania) has set aside 7.5 million shares to help empower communities.
The firm has announced the launch of another company, Swala Energy Trust Company Limited, as a vehicle for this purpose.
Swala said the newly conceived company (Trust) will own 7.5 million shares in Swala and will invest profits from the gradual sale of these shares to support and uplift the welfare of communities where Swala operates.
A first of its kind in the East African region, the trust is a further development to the successful Initial Public Offer prospectus (IPO) launched last year which was oversubscribed by 39%.
The Trust, which is designed to be independent of Swala, is overseen by a board of directors that have considerable experience in this area, Swala’s Chief Executive Officer, Dr David Mestres Ridge said.
The trust owns 7.5 million shares in Swala that, at today’s market price, are worth nearly Tsh49 billion ($26.78 million).
Ridge told the East African Business Week that these shares will be used to generate venture capital to finance community-oriented development projects in Swala’s areas of operations.
He said the trustees of the Trust will be entitled to sell up to 10% of the 7.5 million shares every year to support these investments, and will work closely with local and existing structures to run a variety of programs that will benefit local communities.
According to him, the Trust is currently conducting a study to establish key partners and identify specific community needs around Swala’s areas of operations.
“We are delighted to announce the launch of Swala Energy Trust, which will be responding to the specific requirements of communities where we operate in,” Ridge said.
The Trust has been designed to allow for substantial increase in livelihoods to many Tanzanians who continue to face multiple challenges including in the areas of health, education, sanitation and poverty, he added.
