4 November 2018

Tanzania: Govt Cancels Nic Privatisation Process

THE government is finalising the procedure to remove its National Insurance Corporation (NIC) from privatisation process after announcement to privatise the state-owned insurance corporation eleven years ago.

Deputy Permanent Secretary in the Ministry of Finance and Planning, Ms Suzana Mkapa, noted here yesterday that instead of privatising NIC, the government will carry out major reforms for NIC to run its operations profitably.

"The government is determined to revive its National Insurance Corporation to competitively run its activities," said the Deputy Permanent Secretary while opening NIC workers council meeting. Ms Mkapa informed the NIC workers council that the government will thus extend their work contracts to a period of three months beginning November after three years work contracts had expired last month.

She explained that the government extends the employment contracts for NIC workers pending solution currently sought by the state to decide the future of NIC; urging workers to remain tolerant while the government is seeking for a solution. Ms Mkapa underscored the need for NIC workers to start improving their performance to enable the company run its activities profitably.

Earlier, the Managing Director of NIC, Mr Sam Kamanga appealed to the government to decide on the future of the insurance company after workers decided to enter short term contracts after every three years since announcement of privatisation.

He urged the government to increase business capital for NIC to run its operations competitively in the market, noting that NIC has presently a business capital amounting to 2.9bn/-.

Mr Kamanga said the increase of business capital will help NIC to uplift the level of its efficiency, saying the insufficient business capital remains a major challenge for them to carry out operations efficiently.

As for the NIC workers council meeting, the NIC Managing Director said the second meeting of NIC workers council will discuss strategic plans that will improve operations.

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