Yaliyomo Contents

2003Annual Report Taarifa ya Mwaka

Head Office: Tanga Cement Company Limited, Pongwe Factory Area, P.O.Box 5053 Tanga, TanzaniaEmail: tcctan@tanga.net

DSM Offices:50 Mirambo Street, P.O.Box 78478 Dar es Salaam, TanzaniaTel: +255 22 2120135, Fax: +255 22 2119569, Email: tccldar@raha.com

Environment page 22 Corporate Social Investment page 16

quality page 24

• Vidokezo vya mapato 5• Maelezo mafupi kuhusu

wakurugenzi 6• Taarifa ya Mwenyekiti wa Bodi ya

Wakurugenzi 11• Taarifa ya Mkurugenzi Mtendaji 13

• Huduma za kijamii – Shule ya msingi Montessori iliyoko

Mwanza 16– Hospitali ya Mnazimoja

iliyoko Unguja 18– Huduma za kijamii za Kampuni 21

• Mazingira 23• Ubora 24

• Utawala wa Kampuni 27• Taarifa ya ongezeko la thamani 35• Taarifa ya Wakurugenzi wa Bodi 39• Sera za Uhasibu 43• Taarifa ya Mapato 47• Mizania ya Kampuni 49

• Financial Highlights 4• Board of Directors and profiles 6• Chairman’s Statement 10• Managing Director’s Report 12

• Corporate Social Investments and Visions:– Montessori Primary school in Mwanza 16– Mnazimoja Hospital in Zanzibar 18– Corporate social investments 20

• Environment 22• Quality 24

• Corporate Governance 26• Value added Statement 34• Directors, Officers and Administration 36• Report of the Directors 38• Accounting Policies 42• Report of the External Auditors 44• Income Statement 46• Balance Sheet 48• Cash Flow Statement 50• Statements of Changes in Equity 51• Notes to the Financial Statement 52• Notice of Annual General Meeting 71• Corporate Information 72• Proxy Form 73

Content 3

Yaliyomo Contents

• Year on Year revenue growth of 30%

• Net Profit after tax 36.3% higher than 2002.

• Record Dividend declaration of TShs100 per share.

• Record Sales levels.

financial highlights4

financial highlights

Bildtitel fuer bild 1

Revenue

Dividends per share

Earnings per share

Audited Audited Audited Audited2000 2001 2002 2003

Audited Audited Audited Audited2000 2001 2002 2003

Audited Audited Audited Audited2000 2001 2002 2003

Audited Audited Audited Audited2000 2001 2002 2003

Profit after Taxation

TSh Billions

TShs

TSh Billions

TShs

60

50

40

30

20

10

0

7

6

5

4

3

2

1

0

• Ongezeko la mwaka hadi mwaka lamapato la asilimia 30.

• Faida baada ya kodi ya asilimia 36.3 zaidi ya faida ya mwaka 2002.

• Gawio la pekee la shilingi mia kwa hisa.

• Kiwango cha mauzo cha kujivunia

vidokezo vya mapato 5

Vidokezo vya mapato

Bildtitel fuer bild 1

Mapato

Gawio kwa hisa

Mapato kwa hisa

Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa2000 2001 2002 2003

Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa2000 2001 2002 2003

Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa2000 2001 2002 2003

Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa Zilizokaguliwa2000 2001 2002 2003

Faida baada ya kodi

TSh Billions

TShs

TSh Billions

TShs

60

50

40

30

20

10

0

7

6

5

4

3

2

1

0

ChairmanDave James King (40)South African B Comm. B Acc CA (SA)

Dave James King isDirector of Holcim(South Africa) (Pty)Limited and serves onnumerous subsidiaryboards of Holcim (SouthAfrica) and HolcimMauritius InvestmentHoldings Limited.

MwenyekitiDave James King (40) Raia wa Afrika ya KusiniB Comm. B Acc CA (SA)

Dave James King niMkurugenzi wa Kampuniya Holcim ya Afrika yaKusini na ameshikiliaukurugenzi wa kampunitanzu mbalimbali zaHolcim Afrika ya Kusinina Holcim MauritiusInvestment HoldingsLimited.

Executive DirectorLeon Edward Hooper (45) BritishBSc (Hons) Chemical Engineering

Leon Hooper is the Chief Executive and ManagingDirector of Tanga Cement Company Limited. Leon isa Director of various companies including CementDistributors (East Africa) Limited and East AfricanRailway Haulier. He is a councilor of Confederationof Tanzania Industries, Vice Chairman of TanzaniaPrivate Sector Foundation, Deputy Chairman of EastAfrica Cement Producers Association and sits on theboards of National Business Council, NationalConstruction Council and many others.

Mkurungenzi MtendajiLeon Edward Hooper (45) Mwingereza BSC ( Hons) Mkemia

Leon Hooper ni ofisa Mtendaji Mkuu na Mkurugenziwa Kampunia ya Saruji ya Tanga. Leon ni Mkurugenziwa makampuni mbalimbali yakiwemo Kampuni yaWasambazaji wa Saruji Afrika Mashariki na Kampuniya Reli ya Afrika Mashariki. Ni mjumbe wa Ushirikawa Wamiliki wa Viwanda Tanzania, Makamumwenyekiti wa Taasisi ya Wazalishaji binafsiTanzania, Makamu Mwenyekiti wa Umoja wa AfrikaMashariki wa Wazalishaji wa Saruji, na ni mjumbewa bodi ya Wakurungezi wa Baraza la Taifa laWafanyabiashara na Baraza la Taifa la Wajenzi namengine mengi.

Board of Directors and Profiles6

Board of Directors and Profiles

Dave James King Leon Edward Hooper

Maelezo mafupi kuhusu Wakurugenzi

Mwanaidi Sinare Maajar (51) Tanzanian LLM (Dar es Salaam), LLB (Dar es Salaam).

Mwanaidi Maajar is an Advocate and a Corporateand Mining Law Consultant. She is a founding part-ner of Maajar, Rwechungura, Nguluma and MakaniAdvocates. She has extensive experience of corpo-rate set ups, corporate restructuring, privatization,divesture of public corporations, mining law andother matters. She is the current Chairperson of theTanzania Women Lawyers Association and sits onvarious representative bodies, the International BarAssociation and BRELA amongst others. Her compa-ny is one of the most respected Law firms inTanzania.

Mwanaidi Sinare Maajar (51) Mtanzania- LLM (Dar – es- Salaam), LLB (Dar es Salaam)

Mwanaidi Maajar ni Wakili na Mshauri wa masualaya makampuni na sheria za madini. Ni mbiamwanzilishi wa Kampuni ya Mawakili ya Maajar,Rwechungura, Nguluma na Makani. Ana uzoefumwingi wa mfumo wa makampuni, urekebishaji wamakampuni, ubinafsishaji wa mashirika ya umma,sheria za madini na mengine mengi. Kwa hivi sasa nimwenyekiti wa Umoja wa Chama cha WanasheriaWanawake Tanzania na mjumbe mwakilishi wa bodimbalimbali.

Karl Meissner-Roloff (51) South African - BSc (Hons)

Karl Meissner-Roloff is the ManagingDirector of Holcim (South Africa) (Pty)Limited. He was appointed a Non-Executive Director of the Company witheffect from 16th December 2002. Heholds a Bachelor of Science Degree inCivil Engineering (BSc. Civ.Eng.) andhas many years experience in thecement industry.

Karl Meissner-Roloff (51)Raia wa Afrika ya Kusini – BSc (Hons)

Karl Meissner- Roloff ni MkurugenziMtendaji wa kampuni ya Holcim yaAfrika Kusini. Aliteuliwa kuwaMkurugenzi wa kampuni tarehe 16December 2002. Ana Shahada yaUhandisi (BSc. Civ. Eng.) na ana uzoefuwa miaka mingi katika nyanja yaviwanda vya Saruji.

Maelezo mafupi kuhusu Wakurugenzi 7

Mwanaidi Sinare Maajar Karl-Meissner-Roloff

Venance Francis Ngula (60) TanzanianBA, BA (Hons),MA (Economics)

Venance Ngula holds an MA inEconomics and has served theTanzanian Government in numerouscapacities from MP to Deputy Ministerof Finance. He has also served on theboards of various enterprises, includingTanzania Housing Bank and NationalSteel Corporation.

Venance Francis Ngula (60) MtanzaniaB.A., BA (Hons), MA Economics

Venance Ngula ana shahada ya Juu yaUchumi na ameitumikia serikali yaTanzania katika ngazi mbalimbali kuto-ka katika Ubunge hadi Unaibu Waziriwa Fedha. Pia amekuwa mjumbe wabodi katika mashirika na makampunimbalimbali zikiwepo Benki ya Nyumbana Shirika la Chuma la Taifa.

Professor Samuel Mwita Wangwe (55) TanzanianPHD (Economics) BA (Economics)

Professor Wangwe is a highly respected academicwho over the past 30 years has been involved in hischosen discipline at the highest levels. He read forhis doctorate in collaboration with Nobel PrizeWinner Prof. Amartya Sen at Oxford and has held lec-turing posts at the University of Dar es Salaam. FromApril 1994 he was elected pioneer Executive Directorof ESRF in Tanzania until April 2002. ProfessorWangwe has published over 10 books and 60 articles.He continues to act as an independent consultant.

Professor Samuel Mwita Wangwe (55) MtanzaniaPHD (Econimics) BA (Econimics)

Profesa Wangwe ni msomi anayeheshimika ambayekatika muda wa miaka 30 iliyopita amekuwa akijihu-sisha na taaluma yake kwa kiwango cha juu.Anasomea Udaktari kwa ushirika na mshindi watunzo la Prof. Amartya Sen huko Oxford na amewahikushikilia nafasi ya Ukufunzi katika Chuo Kikuu chaDar – es – Salaam. Tangu April 1994 aliteuliwamwananzilishi na Mkurugenzi Mkuu wa Taasisi yaUtafiti wa Masuala ya Uchumi na Jamii (ESRF) yaTanzania hadi April 2002. Profesa Wangwe ameandi-ka zaidi ya vitabu 10 na tungo 60. Anaendeleakufanya shughuli za ushauri binafsi.

Board of Directors and Profiles8

Venance Francis Ngula Prof. Samuel Mwita Wangwe

Board of Directors and Profiles

Maelezo mafupi kuhusu Wakurugenzi

Dr. Peter Eliezer Temu (67) TanzanianBSc Economics, MA Economics(Stanford) Phd Economics (Stanford)

Peter Temu has worked as anAcademician and served the TanzanianGovernment and the United Nations invarious capacities until retiring in 1996as Director – MultinationalProgramming and Operational Centre.He holds a doctorate in Economicsfrom Stanford University and is nowretired.

Dk. Peter Eliezer Temu (67) MtanzaniaBSc Economics, MA Economics(Stanford), Phd Economics (Stanford)

Peter Temu amekuwa akifanya kazikama msomi aliyebobea katika serikaliya Tanzania na Umoja wa Mataifa kati-ka ngazi mbalimbali kabla ya kustaafumwaka 1996. Amekuwa mkurugenziwa kituo cha kimataifa cha mipango naamepata udaktari wa Filosofia wamasuala ya uchumi kutoka Chuo Kikuucha Stanford na sasa amestaafu.

Company SecretaryEmil Luke Moul (45) BritishFCMA FCIS T.ACPA

Emil Moul is Tanga Cement’s FinanceManager and Company Secretary. Heis a Chartered ManagementAccountant (FCMA) and a CharteredSecretary (FCIS). He joined TangaCement in March 2001. He has twentyyears business experience in executiveand senior management positions inlisted world-class multinational com-panies.

Katibu wa KampuniEmil Luke Moul (45) Mwingereza FCMA FCIS T.ACPA

Emil Moul ni Meneja wa Fedha naKatibu wa Kampuni ya Saruji ya Tanga.Amebobea katika taaluma ya Uhasibuna mambo ya Uongozi. Emil niMhasibu msajiliwa katika taaluma yauongozi (FCMA) na msajiliwa mwenyetaaluma ya Uhazili (FCIS). Amejiungana Kampuni ya Saruji ya Tanga mwen-zi wa Machi 2001. Ana uzoefu wamiaka 20 wa kuendesha biashara naameshikilia nafasi za juu za utawalakatika makampuni ya kimataifayaliyosajiliwa katika masoko ya hisa.

Maelezo mafupi kuhusu Wakurugenzi 9

Dr. Peter Eliezer Temu Emil Luke Moul

The year endedDecember 2003 was arecord year for TangaCement in many respects.

Production of bothClinker and Cement wereall time records.

The very strong localmarket sales growthexperienced towards theend of 2002 continued to2003 and as a conse-quence record sales wereset in 2003. The totalsales of 576,631 tons rep-resents a Tanga Cementand a Tanzanian cementindustry new benchmark.

We continued to cementour position as marketleaders throughout 2003and managed to win anumber of tenders forroad and other construc-tion contracts throughour logistic and supplychain superiority.

The interim profitannouncement reflecteda projected profitincrease of 25% against2002 profit after tax. I ampleased to report that dueto the strong sales per-formance and good costcontrol the net profit aftertax of Tshs 6.38 billion is36% above the 2002 netprofit after tax.

Dividend declaration As a result of the highlevel of liquidity a totaldividend payment of100% of the previousyear's profit after tax isproposed.

A dividend of Tshs 79 pershare is therefore pro-posed for payment,bringing the total divi-dend for the year to Tsh100 (2002 - Tshs 55).

Chairman’s Report10

Chairman’s Statement

Dave James King, Chairman

ProspectsThe sales growth level experiencedover the past year has been impressiveand symptomatic of the continuingpositive gains being made in theTanzanian economy as a whole. It isextremely unlikely that this level ofoverall growth is going to be sustainedover 2004. However, a number of ini-tiatives directed at reducing productioncosts and maximising the benefit ofTanga Cement's logistics advantage areexpected to continue providing posi-tive earnings growth above expectedinflation.

The records that were set in 2003would not have been possible withoutthe strong foundation of dedicatedemployees and the loyalty of our cus-tomers, shareholders and other stake-holders. It is with pride that I therefore,on behalf of the Board, express mygratitude for an excellent year's resultsand look forward to even greaterachievements in 2004.

Dave James King Chairman of the Board

Mwaka ulioishia Desemba 2003, ulikuwawa mafanikio kwa kampuni ya Saruji yaTanga katika nyanja nyingi.

Uzalishaji wa saruji na bidhaa zitokanazona saruji ulikuwa wa kiwango cha juu.

Ukuaji mkubwa wa soko la mauzo yandani ulionzia mwishoni mwa mwaka2002 uliendelea hadi 2003 na matokeoyake mauzo ya juu yalipatikana mwaka2003. Jumla ya tani 576,631 ziliuzwa nakuweka kiwango kipya cha kampuni yaSaruji ya Tanga na soko la Saruji Tanzania.

Tuliendelea kuongoza kwa mauzo ya sarujikatika mwaka mzima wa 2003 na tuli-fanikiwa kupata zabuni mbalimbali zaujenzi wa barabara na zabuni nyingine zakandarasi kupitia mfumo wetu ulio borazaidi wa usambazaji na ugavi.

Faida ya awali iliyotangazwa ilionyeshamakisio ya ongezeko la asilimia 25 ukilin-ganisha na faida baada ya kodi ya mwaka2002. Nina furaha ya kutoa tamko kuwakwa sababu ya utendaji madhubuti wamauzo na usimamizi mzuri wa kuthibitigharama, faida baada ya kodi ni shillingibilioni 6.38 ambayo imezidi kwa asilimia36 ya faida halisi ya mwaka 2002 baada yakodi.

Tamko la GawioKutokana na hali nzuri ya ukwasi, tunapendekeza malipoya gawio la kiasi asilimia mia moja zaidi ya faida ya 2002baada ya kukata kodi.

Gawio la Tshs 79 kwa kila hisa linapendekezwa kulipwana kufikisha malipo yote ya gawio kufikia Tshs 100 (2002 –Tshs 55)

MatarajioOngezeko la kiwango cha mauzo mwaka uliopitalimekuwa la kutia moyo na ongezeko linaonekana kuwasambamba na ukuaji wa uchumi wa Tanzania kwa ujum-la. Hakuna uwezekano mkubwa kuwa ongezeko hilikubwa litaendelea kuhimili hadi 2004. Hata hivyo,mikakati mbalimbali iliyoelekezwa katika kupunguzagharama za uzalishaji na kuongeza mafanikio ya Kampuniya Saruji ya Tanga katika mikakati ya usambazaji yanatege-mewa kuendelea kuchangia ukuaji wa mapato juu yaongezeko la mfumuko wa bei.

Mafanikio yaliyofikiwa mwaka 2003 yasingefikiwa bilakuwapo msingi bora wa wafanyakazi wanaojituma nauaminifu wa wateja, wenye hisa na wadau wengine. Nikwa kujivunia haya, kwa niaba ya Bodi ya Wakurugenzininatoa pongezi zangu kwa mafanikio na faida ya mwakana tunaungalia mwaka 2004 kwa nafanikio makubwazaidi.

Dave James KingMwenyekiti wa Bodi

Taarifa ya Mkurugenzi wa Bodi ya Wakurugenzi 11

Taarifa ya Mwenyekiti wa Bodi ya Wakurugenzi

In many ways 2003 was a remarkableyear for Tanga Cement. The highdemand for cement both within thecountry and within the region resultedin huge challenges being set for everypart of the organization. The chal-lenges were met and targets achieved.The following is a list of some of thenew benchmarks set in 2003.

Achievements• Record Production level of both

cement and clinker.

• Record sales not only for Tanga Cement but for any Tanzanian cement operation.

• Record profits of TShs 6.38 billion after tax and growth of 36.3% against 2002 figures.

• Record dividend of 100 TShs per share.

• Selection of Tanga Cement in PriceWaterhouseCoopers survey of the top Twenty (20) most respected East Africa companies for the second year in a row.

Challenges for 2004The National cement consumptionwithin Tanzania has grown by over10% over 2002 levels. One of the chal-lenges for the future is to achieve moreefficient methods of distribution toensure cement reaches inland locationsmore efficiently. This will be especiallyimportant during a year when thenational rail company is scheduled tobe privatized.Tanga Cement’s focus in the year 2004is to address the potential problem of apoor rail infrastructure and road net-work and to consolidate the advantagesprovided by its significant distributionnetwork of dedicated rail wagons, loco-motives and strategically placed ware-houses.Other areas that will undoubtably pres-ent challenges in 2004 are:

• Persistent electrical power supply problems.

• Continuing aggressive attitudes of tax authorities, which add to the cost of business.

• Increased competition within the East Africa context.

Managing Director’s Report12

Managing Director’s Statement

“One of the Challengesfor the future is to achievemore efficient methods of

distribution.”

Katika nyanja nyingi 2003 ni mwakawa kujivunia kwa kampuni ya Saruji yaTanga. Mahitaji makubwa ya sarujihapa nchini na hapa kwenye kandayetu ya Afrika Mashariki ulisababishamsukumo mkubwa kuwekwa katikasehemu zote za kampuni. Matarajioyalifikiwa na malengo kupatikana.Ifuatayo ni orodha ya baadhi ya viwan-go vipya vilivyowekwa mwaka 2003.

Mafanikio• Kiwango ambacho hakijawahi kufiki-

wa cha uzalishaji wa juu wa Saruji nabidhaa zitokanazo na saruji.

• Mauzo makubwa ambayo hayajawahikufikiwa sio kwa kampuni ya Saruji ya Tanga pekee bali kwa shughuli za Saruji nchini Tanzania.

• Kiwango ambacho hakijawahi kufikiwa cha faida ya Tshs bilioni 6.38 baada ya kodi na ukuaji wa asilimia 36.3 ukilinganisha na tarakimu za mwaka 2002.

• Kiwango ambacho hakijawahi kufikiwa cha gawio la Tshs 100 kwa hisa.

• Kuchanguliwa kwa kampuni ya saruji ya Tanga katika utafiti uliofanywa na PriceWaterhouseCoopers kuwa mion

goni mwa makampuni ya juu ishirini (20) yanayoheshimika sana Afrika Mashariki kwa miaka miwili katika mchuano huo.

Changamoto kwa 2004Kiwango cha ukuaji na utumiaji sarujikatika Tanzania kimekua kwa zaidi yaasilimia 10, ukilinganisha na kiwangocha mwaka 2002. Moja ya changamototuliyo nayo ni kufikia ufanisi wa usam-bazaji ili kuhakikisha saruji inayafikiamaeneo ya sehemu za bara kwa ufanisi.Hili litakuwa jambo la umuhimu mkub-wa kipindi hiki cha mwaka ambaoShirika la Reli la Taifa linatarajiwa kubi-nafsishwa.

Kampuni ya Saruji ya Tanga inaulengamwaka 2004 katika kushughulikia tatizosugu la mawasiliano duni ya reli namtandao wa barabara, na kudumishamafanikio yaliyokwisha patikana kwaukubwa wa mtandao wake wa usam-bazaji wa mabehewa ya reli, magarimoshi na sehemu muafaka za mabohari.

Masuala mengine ambayo bila shakayataleta changamoto katika mwaka2004 ni:

• Ukatikaji wa umeme wa mara kwa mara

Taarifa ya Mkurugenzi Mtendaji 13

Taarifa ya Mkurugenzi Mtendaji

Leon E. Hooper

“Moja ya chang-amoto tuliyo nayokwa siku zijazo nikufikia mfumomzuri zaidi wausambazaji.”

• The effective dialogue with Government and other stakehold-ers to allow the successful imple-mentation of new Income Tax and Labour Laws.

Future ProspectsThe local cement market growth isanticipated to continue being funded byDonor and Government spending ofinfrastructure during 2004 and demandis hence likely to maintain 2003 levels.Tanga Cement’s objectives as alwaysare to reduce costs by improving oper-ating efficiencies and hence improveprofitability. The imminent East Africatrade union is seen ultimately as anopportunity rather than a threat andgreat strides continue to be made tomake Tanga Cement the most efficientcement producer in East Africa.The foundation of our success is builton developing dedicated professionalemployees. During 2004 new initiativeswill be taken to further enhance profes-sional development of our employees.At the same time as optimizing ouroperations Tanga Cement will continueto support the various private sectororganizations whose objectives arefocused on driving down the cost of

business in Tanzania, reducing bureau-cracy and ultimately establishing andenabling a more dynamic economy.

Leon E. HooperManaging DirectorTanga Cement Company Limited

Managing Director’s Report14

“ The foundation of our strength is builton developing dedicated professionalemployees.”

“The imminent EastAfrica Trade union isseen ultimately as an

opportunity rather thana threat”.

• Ongezeko la tabia ya ufuatiliaji wa kodi unaofanywa na mamlaka za kodiambayo huongeza gharama za biashara

• Ongezeko la ushindani ndani ya nchiza Afrika Mashariki.

• Mazungumzo makini na yenye mafanikio na serikali na wadau wengine kuwezesha kutekelezwa kwasheria mpya ya Kodi ya Mapato na Sheria za Kazi.

Matarajio ya baadaeUkuaji wa soko la ndani la Sarujiunategemea kuendelea kutokana naukuaji wa misaada ya wafadhili namatumizi ya serikali katika miradi yamiundo mbinu kwa mwaka 2004 nasoko linategemea kuwa katika kiwangocha mwaka 2003. Mkakati wa Kampuniya Saruji ya Tanga kama illivyo kawai-da umekuwa ni kupunguza gharamakwa kuongeza ufanisi wa utendajihivyo kuimarisha faida. Muungano wabiashara unaotegemewa na jumuiya yakibiashara ya Afrika Masharikiunaonekana kuwa changamoto badalaya tishio na hatua mbalimbali zinaen-delea kuchukuliwa kuifanya Kampuniya Saruji ya Tanga kuwa yenye ufanisimkubwa zaidi katika uzalishaji wa

saruji katika Afrika ya Mashariki.Msingi wa mafanikio yetu umejengwakatika kuendeleza wafanyakazi wenyeutaalamu na ari. Katika mwaka wa2004 mikakati mipya itachukuliwakuendeleza taaluma za wafanyakaziwetu. Kwa wakati huo huo ili kufanik-isha shughuli zetu kwa kiwango chajuu, Kampuni ya Saruji ya Tanga itaen-delea kuunga mkono taasisi mbalim-bali za kibinafsi ambazo malengo yakeyameelekezwa katika kupunguzagharama za kuendesha biashara hapaTanzania, kupunguza urasimu na hati-maye kujenga na kuwezesha mfumowa uchumi endelevu.

Leon E. HooperMkurugenzi MtendajiKampuni ya Saruji ya Tanga.

Taarifa ya Mkurugenzi Mtendaji 15

“Ujio wa muunganowa kibiashara waAfrika Masharikiunaonekana hatimayekama changamotobadala ya kikwazo.”

“Msingi wa nguvu yetu umejengwa katika kuen-deleza wanafanyakazi wenye utaalamu na ari.”

16

Contributing to the development ofTanzanian Communities

Corporate Social Responsability 17

Uchangiaji wa kuendeleza jamii ya Kitanzania

School kids enjoy their new building

Montessori Primaryschool in MwanzaThese students of Mon-tessori Primary School inMwanza can now looktowards a concretefuture. Tanga Cementhas given thesechilderen a solid educa-tional foundation bydonating the much-needed cement to builda block of apartments,

leaders of tomorrow!Shule ya msingi Montessori iliyokoMwanza to the reactionary Republican,yet eight Democrats vanquished threequite slippery constitutions. The sleazybudgets patriotically restructures onereally kinder gentler audit, so the slip-pery income taxes tours three slightlyivy-league gross national products. Oneoptimistic government resigned quitetetchily, because three Presidents sto-ically elected eight sleazy Republicans,

which includes fourclassrooms. As theMontessori PrimarySchool pupils look for-ward to sitting for theirfirst Standard Sevenexaminations, they canrest assured that TangaCement has secured forthem a dependable, reli-able learning environ-ment. Good luck to the

19

Supporting sustainable community development

Holding the Society togetherThe Zanzibar Youth Education EnvironmentSupport Association (ZAYEDESA) is one of thebeneficiaries of Tanga Cement’s communitysupport activities. Based in the spice islandscapitals of Unguja and Pemba, ZAYEDESA hasbeen instrumental in various initiatives rangingfrom educational support, drug abuse counsel-ing, medical support and employment genera-tion training. Tanga Cement has a vested inter-est in the welfare of these communities givingthem a sense of hope and uplifting the dignityof the area residents.

Corporate Social Responsability18

A nurse of Mnazi Moja Hospital, Zanzibar

Hospitali ya Mnazimoja iliyoko UngujaHere comes the swahili translation. Based in thespice capitals of Zanzibar and Pemba, ZAYESDAhas been instrumental in various initiatives rang-ing from educational support, drug abuse coun-seling, medical support and employment genera-tion training. Tanga Cement has a vested interestin the welfare of these communities giving thema sense of hope and uplifting the dignity of thearea residents.

Tanga Cement continues to contributesignificantly to the Tanzanian communi-ty by means of its social responsibilitypolicy.

The company contributes 1% of theprofit before tax to specific charities andassociation.

A total of 350 tonnes of cement weredonated during the year to variousgroups and organizations, examples ofwhich were:

ZAYEDESACement donated for community proj-ects in Zanzibar.

EOTFCement donated for Mkuranga DistrictHospital and laboratory in Coast Region

MontessoriCement donated for Montessori Primaryschool buildings in Mwanza Region

Comfort Nursery SchoolCement was donated to construct nurs-ery school for children with disabilitiesin Tanga.

Rombo Education Development FundCement donated for the construction ofschool in Rombo District – KilimanjaroRegion.

AGAPE Schools Committee.Donation was made for the construc-tion of Agape Junior Secondary School.

Mkomazi Wildlife Project.Tanga Cement has been donatingcement to this project for more thanfive years. The cement donated forconstruction of dams for the Rhinoproject.

Corporate Social Investment20

Corporate Social Investment

Montessori Primary School in Mwanza Rosmini Secondary School, Tanga

Kampuni ya Saruji ya Tanga inaendeleakuchangia kwa kiwango kikubwa kwajamii ya Kitanzania kwa kutumia serayake ya kutekeleza jukumu lake kwajamii.

Kampuni inachangia hadi kufikia asil-imia 1 ya faida yake kabla kodi kwavikundi ambavyo vinasaidia jamii.

Jumla ya tani 350 za saruji zilichangiwakwa mwaka huu kwa vikundi na taasisimfano wake ni:

ZAYADESAKampuni ya Saruji imelipatia shirikahilo saruji ili kufanikisha miradi yajamii huko Zanzibar.

EOTFKampuni ya Saruji imelipatia shirikahilo saruji kwa ajili ya kujenga hospitaliya Wilaya ya Mkuranga na maabarahuko mkoani Pwani.

MontessoriSaruji iliyochangiwa kwa ajili ya majen-go ya shule ya msingi ya Montessorihuko mkoani Mwanza.

Comfort Nursery SchoolSaruji iliyochangiwa kwa ujenzi washule ya awali kwa watoto wenye ule-mavu huko Tanga.

Rombo Education Development FundSaruji iliyochangiwa kwa ujenzi washule wilayani Rombo, mkoaniKilimanjaro.

AGAPE Schools CommitteeSaruji iliyochangiwa kwa ajili ya ujenziwa shule ya sekondari ya Agape.

Mkomazi Wildlife ProjectKampuni ya Saruji ya Tanga imekuwaikichangia saruji mradi huu kwa zaidiya miaka mitano iliyopita. Sarujiimechangiwa kwa ajili ya ujenzi wamalambo ya maji kwa mradi wa Faru.

Huduma za kijamii za Kampuni 21

Huduma za Kijamii za Kampuni

School kids in Mwanza The new fish market in Zanzibar

Environment22

Tanga Cement uses alternative fuels as fossil fuel replacement and helps to reduce CO2

emission.

Kampuni ya Saruji ya Tanga inazo serabayana kuhusu mazingira.

Katika kipindi cha mwaka 2003, Nyota4 za usalama za NOSA ziliendelezwakuwekwa na juhudi kubwa zilifanywaili kupata nyota kiwango cha Nyota 5.

Kampuni ya Saruji ya Tanga ilitunukiwatunzo ya ISO 14001 katika utunzajibora wa mazingira – hii ikiwa ni kam-puni ya pili kupata tunzo hii kwaTanzania na ni ya pekee katika viwan-da vya saruji.

Mazingira 23

Tanga Cement has a clear environmen-tal policy.

During the course of 2003 the 4 StarNOSA safety grading was maintainedand great strides were taken towardsachieving a 5 Star ranking.

Tanga Cement has also been recom-mended for ISO 14001environmentalmanagement certification. Once award-ed it will be the second company inTanzania to achieve this award, and theonly Cement Company.

Environment Mazingira

Tanga Cement was certi-fied as ISO 9001:2000compliant during thecourse of 2003.

The company continuesto produce high qualityproduct with all of theaspects of managementbeing optimized toensure the appropriateStandards are adhered to.

Kampuni ya Saruji yaTanga imetunukiwa tunzoya ISO 9001:2000 kwakuendeleza ubora wasaruji kwa mwaka 2003.

Kampuni iliendelea kuza-lisha bidhaa za ubora wakiwango cha juu, uon-gozi ukiwa na nia yakuhakikisha viwangohusika vya uboravinatekelezwa.

Quality24

Quality Ubora

Ubora 25

In 2002 Tanga Cement receivedISO 9002 certification.

Tanga Cement continues to improve itslevels of corporate governance and dur-ing the course of the year a number ofnew committees have been formed inline with established best practice.

Tanga Cement believes that high stan-dards of corporate governance are fun-damental to achieving its long termstrategic goals and to meeting the needsof company stakeholders.

Board of Directors The board is primarily responsible forsetting the broad direction of the com-pany by approving strategic objectives,key policies and financial performancecriteria.

Accountability to shareholders andresponsibility to other stakeholdersremains of paramount consideration inboard decisions, being balanced againstthe demands of the regulatory environ-ment in which the group operates.

The board structure comprises one(1)executive director and seven(7) nonexecutive.

Each shareholder having a 12.5%shareholding is entitled to nominate adirector.

The non-executive directors are select-ed on the basis of their experience,knowledge and independence.Becauseof their calibre and number they carrysignificant weight in the board’s delib-erations and resolutions.

The strong independent composition ofthe board provides for independent andobjective judgement in the decisionmaking process and ensures that noone individual has unfettered powers ofdecision and authority.

All directors are subject to retirementby rotation and re-election by theshareholders at least once every threeyears in accordance with the compa-ny’s Articles of Association. The boardas a whole approves the appointmentof new directors, based on recommen-dations of the Nomination Committee.

The board meets formally at least oncea quarter or more frequently if circum-stances so require, to review mattersspecifically reserved for its decision, in-cluding the review of financial andoperational results, and to considerissues of strategic direction, majoracquisitions and disposals, approval ofmajor capital expenditure and construc-tion tenders as well as any other mattershaving a material effect on the company.

Corporate Governance26

Corporate Governance

Utawala wa Kampuni 27

Kampuni ya Saruji ya Tanga imeendeleakuimarisha viwango vyake vya utawalabora na kwa kipindi cha mwaka huu,kamati mbalimbali ziliundwa zikiwa nisehemu muhimu ya utendaji bora.

Kampuni ya Saruji ya Tanga inaaminikwamba utawala bora ni msingi wamafanikio katika uzalishaji na hata kwawashika dau.

Bodi ya WakurugenziJukumu la awali la Bodi hiyo ni kuwekabayana mwelekeo wa Kampuni kwakuidhinisha mikakati, malengo, sera zamsingi pamoja na mapato ya kampuni.

Bodi pia inawajibika kikamilifu katikamaamuzi yanayowahusu wanahisa nawashikadau wengine.

Mfumo wa Bodi ni ule ambao kunaMkurugenzi Mtendaji mmoja (1) nawakurugenzi wengine saba (7) ambaosio watendaji.

Kila mwanahisa ambaye anamiliki asili-mi 12.5 ana haki ya kumchaguaMkurugenzi.

Wakurugenzi wasio watendaji wanach-aguliwa katika misingi ya uzoefu walionao, elimu na jinsi gani wanavyowezakufanya kazi kwa kujitegemeawenyewe. Hii inatokana na majukumumakubwa ya maamuzi ambayowanatakiwa kuyatoa katika bodi.

Wakurugenzi wanatakiwa kuwa namaamuzi fasaha na ya binafsi katikaBodi.

Wakurugenzi wako chini ya sheriainayowataka kustaafu kwa hiari pundemuda wao unapowadia, ama kuchag-uliwa tena na wanahisa angalau maramoja baada ya kipindi cha kila miakamiwili kufuatana na sheria za Kampuni.Kwa mujibu wa kauli ya Kamati yaUteuzi ya kampuni Bodi ndiyo yenyemamlaka ya kuthibitisha wakurugenziambao wamechaguliwa.

Kwa kawaida Bodi hukutana maramoja katika kipindi cha miezi mitatuama chini ya hapo ili kujadili masualaya msingi yanayohitaji maamuzi yaBodi ikiwa ni pamoja na kupitia masu-ala ya fedha, uendeshaji, mwelekeo waKampuni na kupitisha mapendekezo yamatumizi ya fedha, tenda za ujenzi namambo mengine yanayogusa Kampuni.

Utawala wa Kampuni

Chairman and Managing DirectorThe roles of Chairman and ChiefExecutive are separate. The board is ledby the Chairman, Dave King, who is anon-executive director. The executivemanagement of the group is the respon-sibility of the Managing Director, LeonHooper.

Company SecretaryAll directors have access to the adviceand services of the Company Secretary,and to any other information or docu-mentation they may require. The Com-pany Secretary also keeps the boardadvised of any relevant changes in reg-ulation and company law legislation.

Nomination CommitteeMembers:Leon Hooper - ChairmanMwanaidi Maajar - MemberProf. Samuel Wangwe - MemberVenance Ngula - Member

A Nomination Committee has beenestablished being chaired by theManaging Director Leon Hooper. Therest of the committee are non executivedirectors.Terms of reference and powers delegat-ed to this committee have beenapproved by the Chairman.

The primary purpose of this committeeis to ensure that the board of directorsconsists of people with skills and attrib-utes needed by the company. To dothis it considers the need for new direc-tors, searches for candidates and rec-ommends new directors to the mainboard.

Disciplinary CommitteeMembers:Venance Ngula - Chairman Leon Hooper - MemberMwanaidi Maajar - MemberPeter Temu - Member

The committee’s primary objective is toreview the position of the numerouscourt cases and litigations that TangaCement is involved in and to recom-mend to the board courses of action toresolve issues and reduce risk.

The committee presents recommenda-tions to the board of directors of thequarterly board meeting.

The committee is convened at leasttwice per year, or otherwise as requiredas circumstances dictate.

Corporate Governance28

Corporate Governance

Mwenyekiti na Mkurugenzi MtendajiWajibu wa Mwenyekiti na OfisaMtendaji Mkuu ni tofauti. Bodi inaon-gozwa na Mwenyekiti, Dave Kingambaye siyo Mkurugenzi Mtendaji.Usimamizi wa utendaji wa Kampuniumo chini ya uongozi wa MkurugenziMtendaji, Leon Hooper.

Katibu wa KampuniWakurugenzi wote wanahusika mojakwa moja kwa Katibu wa Kampuniikiwa ni pamoja na haki ya kupata taar-ifa za kampuni kutoka kwa katibu huyo.Katibu ana wajibu wa kuhakikishakwamba Bodi inapata ushauri mbalim-bali kuhusu mabadiliko ama masualaya sheria yanayoihusu kampuni.

Kamati ya UteuziWajumbe:Leon Hooper - MwenyekitiMwanaidi Maajar - MjumbeSamuel Wangwe (Prof.)- MjumbeVenance Ngula - Mjumbe

Kamati ya uteuzi imeundwa ikiwa chiniya uenyekiti wake Mkurugenzi MtendajiLeon Hooper. Wajumbe wengine siowakurugenzi watendaji.

Majukumu yao yameidhinishwa na Mwenyekiti.Lengo la awali la kamati hiyo ni kuhakikisha kwambaBodi ya Wakurugenzi ina watu wenye sifa zinazohita-jika, ufahamu na mchango unaohitajika kwa kam-puni. Ili kuhakikisha kwamba lengo hilo linafanikiwakamati hiyo huangalia kama kuna umuhimu wakuwapata Wakurugenzi wapya wa kampuni, kuwapa-ta wagombea walio na sifa ya wadhifa huo pamoja nakupendekeza majina ya Wakurugenzi wapya kwenyeBodi ya Wakurugenzi.

Kamati ta NidhamuWajumbe:Venance Ngula - MwenyekitiLeon Hooper - MjumbeMwanaidi Maajar - MjumbePeter Temu - Mjumbe

Jukumu la awali la kamati hiyo ni kupitia hali ya kesimbalimbali zilizofikishwa mahakamani zinazoihusukampuni ya Saruji ya Tanga pamoja na kutoa ushaurikwa Bodi kuhusu jinsi ya kukabiliana na hali iliyopoili kuiepusha kampuni dhidi ya matatizo zaidi.

Kamati huwakilisha mapendekezo yake kwa Bodiwakati wa kikao cha Bodi.

Kwa kawaida kamati hiyo hukutana mara mbili kwamwaka, ama kama kuna umuhimu wa kufanyika kwakikao cha dharura.

Utawala wa Kampuni 29

Utawala wa Kampuni