Dar es Salaam-based businessman Hans Macha has gained TZS2 billion ($847,000) since the start of the year on the back of a double-digit surge in the shares of CRDB Bank on the local bourse.
This surge was the result of sustained buying pressure on the shares of the Dar es Salaam-based bank, as investors hunt for stocks with impressive value on the local bourse to hedge against the recent decline in the purchasing power of the Tanzanian shilling.
The Tanzania National Bureau of Statistics report revealed that annual inflation reached 3.8 percent in July from 3.6 percent in June, the highest since December 2019.
A persistent rise in inflation erodes the value of the local currency. It is in line with standard practice for local investors and hedge fund managers to seek an investment that will hedge against rising inflation rates.
In its half-year earnings report, the bank posted a 26-percent rise in profits from TZS70.4 billion ($30.4 million) in 2020 to TZS88.6 billion ($38.2 million) in 2021. This result was in line with analyst expectations, as it sustained investor buying interest in the bank.
As of press time, 7:25 AM (UTC), Sept. 17, shares in CRDB Bank on the Dar es Salaam bourse were worth TZS255 ($0.1099) per share.
Investor interest in the bank has caused the share price to rise from TZS195 ($0.084) on Jan. 4 to TZS255 ($0.1099) at the time of writing. This translates to a 31-percent gain for investors in 255 days.
Macha, who holds a 1.9-percent stake in the Tanzanian bank, has seen a gain of $847,000 since the start of the year.
Data tracked by Billionaires.Africa revealed that the market value of his stake has increased from TZS6.4 billion ($2.75 million) on Jan. 4 to TZS8.35 billion ($3.60 million) at the time of writing.
The Dar es Salaam-based businessman also holds a two-percent stake in Maendeleo Bank, a leading financial institution in Tanzania offering banking products and services to owners of micro, small and medium enterprises.
