Tanzanian investor Hans Macha is one of the few African businessmen whose investments in publicly traded companies have seen a significant rise since the start of 2022.
Since the year began, the market value of his investments in the banking sector has continued to defy the valuation issues faced by publicly traded firms — particularly in recent weeks.
The market value of Macha’s equity interest in CRDB Bank Tanzania, the country’s largest banking group, has increased by nearly $1.5 million since the start of 2022 amid a double-digit year-to-date rise in the group’s share price.
Macha, a reclusive businessman who owns a total 1.9-percent stake in CRDB Bank, is one of the top 10 richest investors on the Dar es Salaam Stock Exchange thanks to his stake in CRDB Bank, as well as his two-percent position in Maendeleo Bank, a Tanzanian financial services provider that offers banking products and services to the owners of micro, small, and medium enterprises.
Shares in CRDB Bank were trading at Tsh385 ($0.1651) per share as of press time on Sept. 30, unchanged from their opening price on the local bourse. The bank’s share price has managed to remain stable in recent weeks, as investors and other market participants closely monitor financial and economic data as central banks worldwide continue to raise rates to ward off inflation.
Since the start of the year, shares in the group have increased from Tsh280 ($0.12) to Tsh385 ($0.165), representing a 37.5-percent gain for shareholders including Macha and Tanzania’s wealthy Rajabali brothers.
The increase can be attributed to the bank’s strong financial performance, as its profit increased by 97 percent to Tsh250 billion ($107.3 million) in the first half of 2022, compared to Tsh127 billion ($54.5 million) in the first half of 2021, despite the harsh macroeconomic environment.
As a result of price increases, the market value of Macha’s stake in CRDB has risen from Tsh9.17 billion ($3.93 million) at the start of the year to Tsh12.61 billion ($5.41 million) at the time of writing.
This amounts to a total gain of Tsh3.44 billion ($1.475 million) for the leading businessman since the year began.
