DSE to open doors to foreign investors

Dar es Salaam- Tanzania (PANA) -- Tanzania is preparing guidelines for foreign investors to start trading on the Dar es Salaam Stock Exchange (DSE) by next year, the chief of the country's securities market announced Tuesday.
Fratern Mboya, chief executive officer of the Tanzania Capital Markets and Securities Authority, said opening the door to foreign investors would boost business at the bourse and enable companies in East Africa to be cross-listed.
In principle, he said, the government has accepted a recommendation to put in place a regulatory structure that would let foreigners trade on the DSE where a capital account would be opened in 2003.
The DSE was launched in April 1998, but the government was reluctant to allow foreign participation before local firms and Tanzanians in general were versed in trading on the stock exchange.
Currently, only five Tanzanian companies are listed on the DSE.
They are TOL Limited, Tanzania Breweries, Tanzania Cigarettes Company, Tanzania Tea Packers and the East African Development Bank which sells bonds only.
Kenya, Tanzania and Uganda, which together form the East African Community, have adopted a common policy to allow international investors to take part in their bourses.
The Nairobi-based East African Breweries now trades its shares on the stock exchanges of Nairobi and Kampala.
Performance of the DSE has been on an upward trend, said Mboya, citing the number of instruments traded on the bourse, the volume of trade and market capitalisation.
Nairobi Stock Exchange is the most vibrant in East Africa, with 53 listed companies and a market capitalisation of 1.
193 billion dollars.
The DSE market capitalisation currently stands at 281 million dollars.
For Kampala Stock Exchange, market capitalisation is around 151.
3 million dollars.

04 september 2001 10:29:00

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