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THE MWALIMU NYERERE MEMORIAL ACADEMY

DEPARTMENT OF ECONOMICS

FIELD ATTACHMENT AT ZANZIBAR ELECTRICITY CORPORATION

NAME OF PRACTICAL TRAINING ORGANIZATION: ZANZIBAR ELECTRICITY


CORPORATION (ZECO)
NAME OF STUDENT : HUSSEIN MAKAME ALI
REGISTRATION NUMBER : MNMA/C3.AC/0011/21
MODULE CODE :
MODULE NAME : FIELD PRACTICAL
TRAINING

THE FIELD REPORT AT ZECO STARTING FROM 26TH JULY 2021 UP TO 17TH
SEPTEMBER 2021.
DECLARATION
I HUSSEIN MAKAME ALI decelerate that, this field report is my own original work and has
not been presented and will not be presented to any other Institution for a similar or any other
Certificate in Accountancy award.

Signature……………………………………………………….

Date…………………………………………………………….

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TABLE OF CONTENTS

DECLARATION 1
TABLE OF CONTENTS 2
LIST OF ABBREVIATIONS 3
LIST OF ILLUSTRATIONS, FIGURES, MAPS, TABLES. 4
ACKNOWLEDGEMENT 5
EXECUTIVE SUMMARY 6
CHAPTER ONE
1.0 Historical Background for ZECO ………………………………………………………………….7
1.1 Functions of ZECO ………………………………………………………………………………….8
1.2 Visions, Mission, Roles and Objectives of ZECO…………………………………………… 8
1.3 Organization Structure of ZECO……………………………………………………………………9
ZECO Organization Chart………………………………………………………………………10
CHAPTER TWO 11
2.0 ACTUAL WORK / TRAINING DONE AND DEPARTMENT DUTIES UNDERTAKEN 11
2.1 Department and Duties undertaken 12
2.2 Professional Experience and Skills Acquired 13
2.3 PROBLEMS ENCOUNTERED AND POSSIBLE SOLUTIONS 12
2.3.1 Problems Encountered 15
2.3.2 Possible solutions 15
CHAPTER THREE 16
3.0 CONCLUSION AND RECOMMENDATION 16
3.1 Conclusion 16
3.2 Recommendations 16

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LIST OF ABBREVIATION
ZECO - Zanzibar Electricity Corporation
PWD - Public Work Department
DO - Delivery Order
GRN - Goods Received Note
LPO - Local Purchase Order
SR - Store Requisition
IFT - Invitation for Tender
TUKUZA - Tumia umeme kwa uangalifu Zanzibar
ZSFPC - Zanzibar State Fuel and Power Corporation

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LIST OF ILLUSTRATIONS, FIGURES, MAPS, TABLES.

Logo of Zanzibar Electricity corporation

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ACKNOWLEDGEMENT
First my sincere thanks should go to the Almighty God who loves me and blesses me and
enabled me to be alive, I can do all things in him who strengthens me to be who I am now.
I would like to give my special thank my parents Mr. and Mrs. Hussin Makame Ali and to all of
my family at all for their love and support during the whole period of my study, I would like to
acknowledge my fellow classmates and friends for one way or another who provided me with
moral and material support which enable me to compete this thesis especially, Maryam Juma and
Khamis azan and all my fellow students basic of those of Accounting Studies’ class of
2021/2022 for their support may God bless you all for your cooperation at the University life.

My sincere gratitude goes to my supervisor for guidance and friendship which made this field
report possible and sacrificing time to assist me despite the limited time provided for undertaking
this study. By managing to provide me with advice concerning the success of the study. I thank
you

I appreciate The Zanzibar Electricity Corporation staff members at Head Office for their tireless
support during my field practical training and their contributions towards the accomplishment of
this study. Special thanks to them. May my Almighty God enlarge their territories?

Lastly with great honor I do reorganize the support to thank the Mwalimu Nyerere Memorial
Academy (MNMA) they groomed me to be a man who I am today. May God bless them all and I
do love them all.

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EXECUTIVE SUMMARY

This report includes the task and duties performed by MR HUSSEIN MAKAME ALI at the
Zanzibar Electricity Corporation (ZECO) that was allocated at Zanzibar for the period
approximately two months starting from 26th July 2021 to 11th September 2021.

The report is written according to the guidelines for the fieldwork provided by the Faculty of
Accountancy, whereby each chapter is concisely written and covers valuable contents as per
fieldwork guidelines. The tasks and duties described in this report are based on a core set of
values, valid information and I believe that I have become a more effective Accountant and I
have developed an approach that I can call my own. To be precise, my approach incorporates
much of what I have learned from Tanzania Zanzibar Electricity Corporation (ZECO).

This report mainly explains main works which I perform under the finance department and
revenue department including capitalization of assets, requisition to purchase, print bills,
recording cheques, recording daily cash collection, preparation of bank reconciliation, register
new customers.

The most things I gained during my field is not only to get how to apply knowledge but also
how to interact with people of different sex and age in the working environment, another thing is
hard working whereby I used to work for eight hours effectively and this taught me to be self-
committed to my works and try to arrange my own timetable.

The big challenge is about the things that I faced during the field including the use of software
system for accounting, another challenge is the time used for field work was very small to me

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CHAPTER ONE
INTRODUCTION
1.0 HISTORICAL BACKGROUND FOR ZECO

The development of the electricity sector in Zanzibar started in the beginning of the 20th
century. In the year 1908, coal-fired generators were first installed to provide Electricity in
Unguja Island. In 1954 the coal technology was abandoned and diesel Generators introduced
and used until 1980, when Unguja Island was connected to the Tanzania National Grid,
through a 132kV 45MW submarine cable, in 2013 new Submarine was connected with
capacity of 132kV 100MW which is still in use to date.
Public electricity supply in Pemba Island was installed in 1958, with the Commissioning of
the Tibirinzi power station. Over the years additional small generating units were installed
by the Revolutionary Government of Zanzibar, in response to the growing demand. In 1985,
the Government commissioned Wesha power station to replace Tibirinzi power station, with
three diesel generator sets of 1.5MW each. To date, Pemba Island is connected to the
national grid by Submarine cable from Pangani via Majani Mapana Tanga to Ras Mkumbuu
Pemba, with the capacity of 20MW, 33kV.
The State Fuel and Power Corporation (SFPC) was established in 1964 under the then
Ministry of Water, Construction, Land and Environment by Presidential Decree No. 12 of
1964. It was made responsible for managing the power stations and providing services on
both islands. Sector reform under the Act No.3 of 2006 transferred regulatory issues from
the utility to the parent ministry and established the Zanzibar Electricity Corporation
(ZECO) thereby replacing ZSFPC to facilitate the generation, transmission, transformation,
distribution, supply and use of electricity in the Islands of Zanzibar.
ZECO is 100% owned by the Government through the Ministry of Land, Housing, Water
and Energy, which assumes a supervisory role to the Corporation. The Corporation is
governed by the board of directors, appointed by the Government who supervise the ZECO
management and ensure the implementation of the Government’s policies. ZECO is
expected to provide reliable and affordable electricity in Zanzibar, as an important input in
boosting economic growth and social development in the isles.

The new Act has just been passed by the House of Representatives to form a ZANZIBAR
ELECTRICITY CORPORATION (ZECO).
The new Act will now allow the private sectors to participate in the Electricity Sector.

1.1 FUNCTIONS OF ZECO

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 The establishment, acquisition, maintenance and operation of work and undertaking for
the generation, transmission, transformation, distribution and supply of electricity to
consumers in Zanzibar.
 The investigation of new additional facilities for the generation and supply of electricity
in Zanzibar.
 To enter into contracts with any Public, local authority or any other process.
 To enter into agreements for purchases of electricity in bulk from independent power
producers within or outside Zanzibar for resale to the Customers/Consumers.

1.2 VISION, MISSION, ROLES AND OBJECTIVES OF ZECO

❖ Vision Statement
To be an efficient and commercial focused utility supporting the development of
Zanzibar.

❖ Mission Statement
To transmit, distribute and supply electricity in the most effective and sustainable
manners.

❖ Roles and Objectives of ZECO


ZECO was established under the objectives of generating transmitting, distributing and
selling of electricity in Zanzibar, under this objective ZECO has a role to ensure that the
population in Zanzibar has a reliable and accessible good quality of electricity at
affordable price and to the better quality of services to meet the needs of its customers.

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1.3 ORGANIZATION STRUCTURE OF ZECO

The Ministry of Water Construction, Energy and Land has supervisory role to ZECO. The
The Board of Directors has an overall responsibility of ZECO business.

General Manager, manages the day to day activities of the Corporation. ZECO has line
Managers who supervise five functional departments and one branch located at Pemba
Functional departments are Finance department, Administrative department, Commercial
Department, Corporate Planning and IT department.

Every departmental Manager has its assistants from different sectional work from top to
Law level in sections

The following diagram shows the Organization structure of ZECO from top levels to
Law levels for working structure at ZECO.

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ZECO ORGANIZATION CHART
MANAGEMENT TEAM & ASSISTANTS
BOARD OF DIRECTORS
GENERAL MANAGER
Chief Internal Corporation
Auditor Secretary

Core Reform Public Relations


Managers Officer

Corporate Information
Commercial Administration Operations Pemba Branch Finance
Planning Technology
Manager Manager Manager Manager Manager
Manager Manager
Deputy Operations
Deputy Operations
Transmission
Generation
Distribution

Human Senior Senior IT System


Supplying Administrative IT Network
Resources Maintenance Operating Development
Officer Officer Designer
Officer Engineer Engineer Analyst

Principal Principal Principal


Research & Corporate Accountant Accountant Accountant
Development Monitoring Expenditure Revenue Budget
Officer Officer
System
Distribution Planning
Control &Plant
Engineer Engineer
Engineer

Large Branch Internal Audit Administrative Diesel Mains Customer Care


Customer Care TUKUZA Unit Billing Unit Accountant Officer Officer Engineer Engineer Officer
Customers
Officer Officer Officer
Officer

Financial Technical Assistant Corporation


Audit Officer Audit Officer Secretary

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CHAPTER TWO
2.0 ACTUAL WORK / TRAINING DONE AND DEPARTMENT DUTIES UNDERTAKEN
2.1 Department and Duties undertaken

Brief of the task undertaken


 Registration of the customer’ print bills.
To register new zeco customer and customer who change old meter in zeco system in order
to have all equivalent details of customer, print customer bills through zeco system called
customer and affinity, add, capitalize,
Lesson learned
In the 21st century most organizations or companies use computers to perform their duties
and there is different software in computers which perform different work, and also differ
from one organization to another. It depends on the task performed by the organization. zeco
use computer to perform their duty and used different software example in printing customer
bill use customer and infinity which is more powerful compare to old one, another system
used by zeco is the system of customer registration in the database of the zeco, SAP Business
One software used by finance department to register organization assets, luku system and
system of provide key change.

 Preparation of bank reconciliation.


I was given a concept of bank reconciliation whereby I had to compare cash books and bank
statements. Bank statements are prepared on a regular basis normally every month. It helps
ensure that cash is not stolen from your business and it is a means of identifying and fixing
errors.
Lesson learned
How Zeco work,
ZECO uses the system of departments to perform their duty and each and every department
has their duty to perform although it depends on each other in order to perform their duty
well. Example the department of revenue which deal with the collection of company revenue
(bill payment from customer), finance department which deal with the company assets and

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also their engineer department which deal with the problem of service line and infrastructure
of the company,
The main purpose of the department system is to increase responsibility to employees and
provide good services to their customers.

 Deal with customers and record cheque.


Deal with different customers of zeco such as customers for new connections, change meters
and also customers ask for any assistance from zeco. customers ask for a refund of units and
their debts. Records cheque received from customers in cheque book.
Lesson learnt
Team work
In any organization teamwork is very important in order to increase the productivity of the
company and good services to their customer. In zeco team work is among their strategy of
increase productivity of the company, responsibility of the employees and good services to
their customer although zeco have different department which perform different duty but all
department cooperate together to reach the company goals and objectives, example revenue
department support the finance department in manage company assets and finance
department support engineering department in materials of service line and budget for project
and maintenance.

 Records cheque, provide budget.


Recording cheques received from the zeco customers in the cheque book in order to keep
records of the organization. provide a budget after receiving the estimated cost of the project
from the staff of the organization in order to keep records on the amount be used.
Lesson learnt
Keeping records
In an organization dealing with customers like zeco it is very important to keep records, zeco
has a database of keeping record of the customer details and the information of the
organization like project, revenue and expenses of the organization during the year. And also
keep records of their customer proper and safe in order to ensure the safeguard of the
customer information for future use, each and every details of customer kept well example

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name of customer and place where service connected and information of customer payment
like date of payment, amount name and crust reference.

 Capitalization, realization.
Capitalization is the process of registration of organization fixed assets and the most assets of
the organization are service lines. Realization is the process of set-off liability of the
organization, in this process there are two accounts; advanced against service line and
consumer contribution.
Lesson learnt:
Commitment
In order to increase productivity of the company and perform well must be high degree of
commitment to staff of the company regardless their status, organization like zeco need more
committed person to perform well their duty because is the one among the important
organization to the growth of our nation and is only company authorized to supply electricity
in our country. Most zeco employees are committed to their duty. They arrived on time at the
place of their duty and committed to help the problems of the customer until they reach the
solution and also have the passion to perform their work.

 Issue form for new services (fresh customer).


Issue application forms for new customers who ask for the new connection of the service
line, fill all relevant information of the customer required.
Lesson learnt:
How to handle different types of customer (customer care)
There are different types of customer some customer are more talkative and others are so
harsh but as the service provider must handle all types of customer in different ways, in zeco
service provider gave more time customer to express themselves and his or her took more
time to listen the information or details from customer which help them to provide relevant
explanation of the problems faced by customer, they committed to help customer until they
satisfied on what they provided from zeco staff. Is responsible for zeco to ensure their
customer is satisfied by the services provided, example of services provided are to ask for

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new connection, purchases details of the customer, key change, tokens, refund of unit,
electrical problem and meter broken.

 Items of cheque to be valid.


Important items of cheque to be valid there are date, signature, correct amount between in
words and in numbers, name of payer and payee.

Lesson learnt:
Important of bank reconciliation
As accountant is very important to prepare bank reconciliation in order to compare the
balance of cash book and bank statement, to fail to prepare bank reconciliation cause the cost
to the company by pay different penalties, accountant may cause the bounce of cheque which
may cause by different causes one of them is insufficient fund which caused by make
payment although there are no enough money in the bank account but if accountant prepare
bank reconciliation his or her make payment according to the money available in the bank
account of the company.

 Receive payment from customer.


Receive payment from the organization customer for the services provided, there are
different payment systems there are customers who made payment by cash, bank (cheques)
and TISS system (Tanzania interbanking settlement system). Payment may be for new
connections, changed meters and for LUKU.
Lesson learnt:
Payment system
Mostly there are two system of payments which are common used by many of company
which are payment by cash and payment by bank (cheque), but at zeco there are three system
of payment which are payment by cash, bank (cheque) and by SAP business one system and
Cash payment is mostly used by the customer who does not pay a huge amount of money
commonly for payment of electricity for domestic uses.

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Banks are mostly used by the customers who pay huge amounts of money per month for
electricity used by them, commonly used by large businesses which may pay more than
twenty million.
TISS is mostly used by the institute and ministry which command their bank to pay directly
to the ZECO bank account.

2.2 PROBLEMS ENCOUNTERED AND POSSIBLE SOLUTIONS


2.2.1 Problems Encountered
 When SAP business One system shake the service can stop the organization to function
so that make high queue
 Grievance to the customers which delay in get the services in such in any problem faced
they makes more blaming instead of solution to be made
 When we faced up with difficult customers in an organization that either not understood
about the service that we provide is not easy to prove them something right when they
say wrong
 Overworked is the another problem to the organization because we are as scholar we
must learn more thing that can held as to do overtime

2.2.2 Possible solutions


 By using continuously updating of the accounting software’s in the organization that can
prevent in delaying of work and services
 By using polite language good communication is the only way to solve those problem
encountered
 By provide good and qualified services in the organization by organize good work system
 By motivate students in monetary in case to recover the cost of daily routine

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CHAPTER THREE
3.0 CONCLUSION AND RECOMMENDATION
3.1 Conclusion
As a Mwalimu Nyerere Memorial Academy Student and Trainee to the ZECO in my field
training I have come to understand that it is important to attach to customer satisfaction, ethical
business behavior and respect towards other employees to escape the Collision Damage Waiver.
Work by these principles and adhere to them at all times.
Apart from providing electricity as their system of service which offers electricity with high
quality and also selling of meters. Emergency service is also available.
It is important to offer class services to people through a user-friendly system to build up a good
career and good service for the Brand of every activity it is performed or is about to be
performed should be in a good quality.
3.2 Recommendations
The company needs skilled workers who have the skills and expertise to deliver a job well done
and keep your customers satisfied, saving your business money to resolve mentioned problems.
And providing Positive Work Relationships with those skilled workers improve workplace
relations, as they will be able to get on with the job at hand and work harmoniously with their
colleagues so as to increase the chances of Loss Damage Waiver. And encourage the Personal
Effects Coverage to customers.
Mwalimu Nyerere Memorial Academy as an institution should try to maximize the field training
duration of its students, so that they can get more experience in practical ways through the tasks
assigned. And also allowances to the students practicing training in its organization they took
practices at least to cover the cost the students incurred during the field time plus the service the
student provides to the organizations.

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