THE government has challenged Dar es Salaam Stock Exchange (DSE) to list more firms while raising share trading awareness among Tanzanians.<\/p>\n
The challenge was sounded on Tuesday by the Minister of State in Prime Minister\u2019s Office (Investment), Angellah Kairuki when launching Yetu Microfinance second primary offer.<\/p>\n
The stock exchange managed to increase stockholders by 18 per cent from 463,000 in 2015 to 544,300 in 2019.<\/p>\n
The minister said despite some achievements that have been registered by DSE in the past years, still there are areas that the bourse has to work hard in order to improve its performance.<\/p>\n
\u201cStill [DSE] has number of challenges ahead so that the exchange could support the availability of investment capitals,\u201d Ms Kairuki said.<\/p>\n
She said the bourse has to think outside the box on how to woo more company to list on DSE and educating the masses on the benefit of buying and selling of shares.<\/p>\n
\u201cDSE is an important institution on investment capitals. Think outside the box and come up with innovating models that will attract \u2018wananchi\u2019, and companies to invest into share and debt markets,\u201d Ms Kairuki said.<\/p>\n
DSE was also challenged to see what the Microfinance Act 2018 mean to them on educating and enabling Saccos and their members to invest on stock or debt instruments.<\/p>\n
The exchange was also tasked to work diligently with banks and come up with models that will help firms to access affordable and less condition loans via the exchange.<\/p>\n
\u201cThe loans will enable investors to lessen the dependability on private banking loans. This will enable the economy to have capital mix status,\u201d she said.<\/p>\n
Yetu Microfinance Bank Managing Director, Altemius Millinga said there are over 8,000 registered companies in the country but only 23 are listed on DSE.\u00a0\u201cThis is a little number,\u201d Mr Millinga said.<\/p>\n
Yetu, primary business is set to provide financial services to lower end market of financial market. It is also focusing at raising at least 2bn\/-in a two month second IPO.<\/p>\n
The microfinance bank offloaded 3,636,365 shares to market at a price of 550\/-per share.<\/p>\n
However, the \u2018Daily News\u2019 spot survey showed that the main challenge that face DSE on listing fresh companies at the bourse is that most companies are family owned and no one opt to lose a grip on it.<\/p>\n
Norman Sigalla\u2019s research: The Benefits for Listing Securities with The Dar Es Salaam Stock Exchange in Tanzania identified a number of benefits to list on the bourse.<\/p>\n
\u201cThe reality is that there are many benefits for listing securities with the DSE,\u201d the research said.<\/p>\n
It founded out three major benefits being those related to the firms improving their financial status\/capital, benefits resulting from waver of various taxes imposed by laws and benefits of financial liquidity and improved market for goods and services produced by the listed firm.<\/p>\n
The paper also identified some hurdles that keep at bay firms from listing on DSE that some firms do not know the benefits of listing shares and individuals who have subscribed shares with the firms do not know the benefits articulated through listing shares with the DSE.<\/p>\n","protected":false},"excerpt":{"rendered":"
THE government has challenged Dar es Salaam Stock Exchange (DSE) to list more firms while raising share trading awareness among Tanzanians. The challenge was sounded on Tuesday by the Minister of State in Prime Minister\u2019s Office (Investment), Angellah Kairuki when launching Yetu Microfinance second primary offer. The stock exchange managed to increase stockholders by 18 […]<\/p>\n","protected":false},"author":84,"featured_media":1529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[1576,886,2156],"class_list":["post-3978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-angellah-kairuki","tag-dse","tag-yetu-microfinance"],"yoast_head":"\n