Murhandziwa Ltd from South Africa has received a five year long license to run Tanzania’s national lottery, committing to invest the total of 70 billion of Rands over three years.
The financial injection will help to set up the necessary infrastructure to further back the potential return on the investment. The first ticket is expected to be sold on 4th of July, which is at the same time the official start of Tanzanian National Lottery.
Professor Bongani Aug Khumalo, CEO of Gidani International which is the parent company of Murhandziwa Limited, stated that the South African company will work on employing the natives of Tanzania from the very start of the project. It will increase the local economic prosperity by transferring the know-how and subsidizing the training of Tanzanian staff.
Shaking on it
The infrastructural part of the project will be completed through the use of exclusively African materials as well as local technicians who will oversee their deployment. They will build four thousand terminals and a thousand mobile selling points.
Impact on the Tanzanian economy
Prof. Khumalo stated that this is a huge step for Tanzania’s government that will see R40 billion in annual taxes, but also a solid achievement made by Gaming Board of Tanzania (GBT).
“The National Lottery will have a telling effect on skills development and sustainable livelihoods while a good number of Tanzanians will be employed directly by Murhandziwa Limited, while many more translating into thousands will benefit from the spin-off employment opportunities as many suppliers will provide services and goods to Murhandziwa Limited,” Khumalo stated.
He stated that the strategy is mirrored in 200 initial jobs that will lift the lottery of the ground in the first year, but that he expects an additional thousand jobs from ticket selling. The overall amount of money collected by the state will substantially increase over five years, with the overall amount reaching almost R270 billions.
Gaming Board of Tanzania
GBT officials confirmed that the license contains several stipulating amendments that honor state legislation which are enhancing responsible gambling and support the cooperation between the Murhandziwa Ltd and the National Lottery of Tanzania.
Tarimba Abbas, general director of the GBT stated that they are pleased with the share of tax money allocated to the board and thinks the cooperation will be fruitful.
They also corroborated Murhandziwa’s stand on the reasons behind establishing a national lottery, claiming they fundamentally address the structural poverty and prioritize the socio-economic issues in the country.
While this agreement is expected to bear fruit only after July, the media hype around the expansion of gambling might push the South African Parliament to vote in favorite of the Remote Gambling Law pushed for by the PM Geordin Hill-Lewis. Otherwise, we will see how South African Murhandziwa Ltd can prosper from this seemingly beneficial partnership.