Swala Oil and Gas (Tanzania) plc has launched Swala Energy Trust Company Limited (the “Trust”). The Trust will own 7.5 million shares in Swala and will invest profits from the gradual sale of the same to support and uplift the welfare of the communities where the oil and gas company operates.
A first of its kind in the East African region, the trust is a further development to the successful Initial Public Offer prospectus (IPO) launched last year which was oversubscribed by 39 percent, Swala’s Chief Executive Officer, Dr David Mestres Ridge said at the weekend. The Trust, which is designed to be independent of Swala, is will be overseen by a board of directors that have considerable experience in this area and will own 7.5 million shares in Swala that, at today’s market price, are worth nearly 49bn/-, he said. These shares will be used to generate venture capital to finance community-oriented development projects in Swala’s areas of operations.
The trustees of the Trust will be entitled to sell up to 10 percent of the 7.5 million shares every year to support these investments, and will work closely with local and existing structures to run a variety of programs that will benefit local communities.
The Trust is currently conducting a study to establish key partners and identify specific community needs around Swala’s areas of operations.Mestres Ridge said: “We are delighted to announce the launch of Swala Energy Trust, which will be responding to the specific requirements of communities where we operate in”. He said the Trust has been designed to allow for substantial increase in livelihoods to many Tanzanians who continue to face multiple challenges including in the areas of health, education, sanitation and poverty.
The trustees of the Trust will be entitled to sell up to 10 percent of the 7.5 million shares every year to support these investments, and will work closely with local and existing structures to run a variety of programs that will benefit local communities.
The Trust is currently conducting a study to establish key partners and identify specific community needs around Swala’s areas of operations.Mestres Ridge said: “We are delighted to announce the launch of Swala Energy Trust, which will be responding to the specific requirements of communities where we operate in”. He said the Trust has been designed to allow for substantial increase in livelihoods to many Tanzanians who continue to face multiple challenges including in the areas of health, education, sanitation and poverty.
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