Tanzania Capital Markets

DSE Dar Es Salaam Stock ExchangeTanzania Capital Markets Executive Summary

To date, there are 24 companies listed at the DSE, for a total market capitalization of TZS21,767.00b (USD9,970.46 m), as of 10th June 2016.

The DSE All Share Index (DSEI), which comprises all listed companies at DSE, has risen to 2,485.78 points.

The total amount of corporate bonds issued since the DSE‘s inception is over TZS 477 billion.

An increase in the amount of government bonds traded in the secondary market has been recorded at almost 94% since 2011.

Tanzania Capital Markets History

Tanzania’s Stock Exchange, the Dar es Salaam Stock Exchange (DSE), was established in 1996 and started business on April 15th, 1998 to support the Tanzanian Government to privatize parastatal entities in order to boost economic growth, reduce the number of non-performing parastatal enterprises and eliminate budgetary support to them.

From the 14 local listed companies in DSE, 7 are result of the privatization process undertook by the Tanzanian Government.

Tanzania Oxygen Limited (DSE:TOL) was the first state-owned company selected for privatization through the DSE.

After TOL’s initial public offering (IPO) at DSE on April 15th, 1998 Tanzania Breweries Limited (DSE:TBL) followed on September 28th of the same year.

Tanzania Cigarette Company (DSE:TCC), Swissport (DSE:SWIS), Tanzania Portland Cement Company (DSE:TPCC), Tanga Cement Company Limited (DSE:TCCL) and National Microfinance Bank (NMB) completed the list of 7 companies out of 330 shortlisted to be privatized.

Following these first state-driven listings, other private companies decided to list in DSE as a part of their corporate growth strategy to raise capital.

TATEPA, CRDB Bank, Precision Air, Maendeleo Bank, Swala Gas & Oil, MKOMBOZI Commercial Bank, and DCB Commercial Bank listed respectively on December 17th, 1999 June 17th, 2009 December 21st, 2011 November 4th, 2013 August 11th, 2014 December 29th, 2014 and September 16th, 2008 respectively.

DSE also counts with seven cross listed companies with Kenya Airways (DSE:KA), East African Breweries (DSE:EAB), Jubilee Holdings (JHL), Kenya Commercial Bank (DSE:KCB), National media group (DSE:NMG), and Uchumi Supermarket (DSE:USL) from Kenya; and Acacia Mining Group (DSE:ACA) from UK.

These companies decided to cross list mainly due to earn a higher visibility and name recognition in the Sub Saharan region and for accessing potential investors in different markets for future plans to raise capital, as it was declared by the companies’ CEOs at the listing moment.

The DSE has also managed to diversify financial instruments on the market with equities, derivatives, government and corporate bonds and Real Estate Investment Trusts (REITs) with the Watumishi Housing Company (WHC-REIT) which was the first REIT in East Africa.

The latest company to list at DSE is Mucoba Bank (DSE:MUCOBA), after raising a capital of more than TZS2b during its initial public offering (IPO).

The DSE launched its own IPO of 15m ordinary shares at TZS500 per share on 16th May 2016. The IPO has been open for 3 weeks and has officially close on 3rd June 2016.

The exchange intends to self-list its shares on the secondary market under the ticker “DSE” on 12th July and make its shares tradable.

Tanzania Capital Markets Regulation

The Capital Markets and Securities Authority (CMSA) is a government agency established to promote and regulate securities business in Tanzania that has been established under the Capital Markets and Securities Act, 1994.

The Act sought to establish the legal framework for the regulation of the securities industry that is supplemented by regulations promulgated by the Tanzanian Ministry of Finance.

The establishment of the Dar es Salaam Stock Exchange was part of the government’s broader economic reforms aimed at stimulating a dynamic private sector to be the primary engine for economic growth in Tanzania.

The DSE started operations with TOL Gas Limited as the first company that was followed by Tanzania Breweries Limited (TBL) during 1998.

The growing demand for the Tanzanian Stock Exchange services, make it to introduce the Central Depositary System (CDS) in 1999 aiming at facilitate deliveries for DSE trades.

After the listing of first corporate debt in 1999, first Treasury Bonds in 2002 and first cross listing of a foreign company from Kenya in the Air Transport Services industry in 2004, the Dar es Salaam Stock Exchange decided to deploy an Automated Traded System (ATS) linked with the CDS to easily match bids and offers through an electronic interface.

These improvements due to increasing demand have helped the DSE to manage a market capitalization that has grown approximately 260% since 2011 when it recorded TZS 5,926 billion.

The value of shares traded has grown from TZS 48.25 billion in 2011 to TZS 273 billion recorded in 2014, while DSE’s income has done so from TZS 2.01 billion to TZS 3.5 billion in 2014.

Tanzania Capital Market Players

The Tanzanian capital market is composed of 24 listed companies, 10 licensed brokers and 3 custodian banks.

DSE Listed Companies

CompanySecurity CodeActivityIPO Price (TZS)September 16th, 2016 Price (TZS)
Acacia Mining ACAMining (gold).25,16512,950
CRDB BankCRDBBanking350290
DCB Commercial Bank (DCB)DCBBanking380430
Dar es Salaam Stock
Exchange
DSEBourse5001,350
East African Breweries EABLAlcoholic Beverages in Kenya, Uganda, Tanzania and Mauritius2,3005,450
Jubilee HoldingsJHLInsurance5,86010,080
Kenya Airways KAAir Transport21580
Kenya Commercial Bank (KCB)KCBBanking440570
Maendeleo BankMBPBanking500600
Mkombozi Commercial BankMKCBBanking1,0001,000
Mwalimu Commercial BankMCBBanking500550
Mucoba BankMUCOBBanking250400
National Microfinance
Bank (NMB)
NMBBanking6002,750
National Media Group (NMG)NMGMedia3,6002,550
Precision Air ServicesPALAir Transport475470
SWALA Gas and OilSWALAOil & Gas Sector500500
Swissport TanzaniaSWISLogistic Services. Airports handling of passengers and cargo2256,360
Tanzania BreweriesTBLAlcoholic beverages, fruit beverages and non-alcoholic beverages within Tanzania55012,850
Tanzania Cigarette CompanyTCCManufacturing, marketing, distribution and sale of cigarettes41011,740
Tanga Cement Company TCCLProduction, sale and marketing of cement3001,860
TOL GasesTOLIndustrial Sector. Production and distribution of industrial gases,welding equipments, medical gases500800
Tanzania Portland CementTPCCProduction, sale and marketing of cement4352,280
TATEPATTPGrowing, processing, blending, marketing and distribution of tea and instant coffee330650
Uchumi SupermarketUSLSupermarkets25080
Yetu MicrofinanceYETUBanking500600