Business & Economy

ZSSF shopping mall project to boost investment in Zanzibar

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ZSSF shopping mall project
ZSSF shopping mall project

Zanzibar Social Security Fund (ZSSF) last week signed a contract worth of Sh27.9 billion with CRJE (East Africa) first class building contractor run under the giant Chinese company for the construction of a multi-complex shopping mall at Michenzani in Unguja Urban District.

The recently-launched Sh27.9 billion ZSSF project will diversify the Fund’s investment portfolio currently standing at Sh380 billion in total.

The multi-complex shopping mall will house the commercial offices and office facilities, parking slots, supermarkets, and social and recreation halls, banking and cinema halls and will also provide accessible first class residential apartments.

This is the first investment project the Fund has started this year since its 20 anniversary since its inception in 1998, which took place in August. Dr Suleiman Mohamed, ZSSF Board Chairman, said the new venture is in line with the Fund’s real estate investment strategy and five-year strategic plan 2016/17- 2020/21.

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“The Fund will continue to adhere to its guideline as stipulated in its investment policy which requires the Fund to set aside at least 70% of the funds generated income in a year for investment purposes,” Dr. Mohamed said.

Speaking during the contract signing ceremony on Thursday, Ms. Sabra Machano, the Managing Director, said they invited sealed tenders from eligible registered Class I Building Contractors to submit their sealed tenders as defined in the Public Procurement and Disposal of Public Assets Act No. 11 of 2016 for the construction of ZSSF Michenzani Mall in Zanzibar.

Tendering was conducted through the International Competitive Bidding procedure specified in the Public Procurement and Disposal of Public Assets Act No. 11 of 2016.

“Then after undergoing all necessary evaluation procedures we found that out of 28 tenders competed, TJRE East Africa was the only one class I building contractor had the lowest quotation,” Sabra said.

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She said the tender was announced in various local and international newspapers such as the ‘Daily News’, ‘Zanzibar Leo’, including social media such as the ZSSF and HakiPensheni websites, ‘Zenj News’ and ‘Zanzibar 24- — to mention a few.

The Chairman of the Board of Trustees of ZSSF, Dr. Suleiman Mohamed, explained that such multiple investment building has been planned to be accomplished within the Seventh Phase Isles Government, led by President Ali Mohamed Shein.

“The CCM Election Manifesto (2015/2020), which currently leads all development policy formulation of the Government to insist on industrialization, is also aligned towards economic projects including modern buildings which comprise commercial investments and residential apartments,” Dr. Mohamed pinpointed.

He said that they will ensure that such building is constructed according to the international building standards by taking into account people with special needs and to be completed within the timeframe set which is estimated to be in June 2020.

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Speaking at the signing ceremony in Michenzani last week, Dr Mohamed said the project will also contribute to the economic development of Zanzibar in particular and the country in general.

This is expected to have a direct impact on Tanzania’s economy by significantly reducing the commercial buildings and housing deficit in Zanzibar.

“As board chairman, one of our key objectives is to ensure that we implement a number of real estate projects that have a direct impact on the country’s economy,” Dr Mohamed reported, adding: ‘’We believe that projects such as this one in Michenzani will give us a better opportunity to give ZSSF members a reasonable and consistent return on their investments.

We are making significant progress in real estate in line with our mandate to create value for our insured members,’’ he remarked.