Tanzania Capital Markets

Tanzania Capital Markets Executive Summary

As of September 2020, there are 27 companies listed at the Dar es Salaam Stock Exchange (DSE) with a total market capitalization of TZS 15,183.09 billion (USD 6.5 billion).

The DSE All Share Index (DSEI), which comprises all listed companies at DSE, reached TZS 1,828.80 on 9^th of September 2020, down 14% from its peak for the year at above TZS 2,000 in February of the same year.

At the end of Q1 2020, the total amount of outstanding corporate bonds was TZS 176 billion (USD 76 million) issued by four entities: Trade and Development Bank (TDB), EXIM Bank, National Microfinance Bank (NMB), and Tanzania Mortgage Refinance Company (TMRC).

As of 31^st March 2020, total outstanding government bonds stood at TZS 10,864 billion (USD 4.7 billion), marking a 3% increase from the TZS 10,531 billion (USD 4.5 billion) at 31^st December 2020.

Tanzania Capital Markets History

Tanzania’s Stock Exchange, the Dar es Salaam Stock Exchange (DSE), was established in 1996 as 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 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.

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.

DSE also counts with six cross listed companies: Kenya Airways (DSE:KA), East African Breweries (DSE:EABL), Jubilee Holdings (JHL), Kenya Commercial Bank (DSE:KCB), National Media Group (DSE:NMG), and Uchumi Supermarket (DSE:USL) from Kenya.

These companies decided to cross list mainly to earn a higher visibility and name recognition in the Sub-Saharan region and to access 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 DSE launched its own IPO of 15m ordinary shares at TZS 500 per share on 16th May 2016. As of 9^th September 2020, the DSE trades at TZS 890, an increase of 78%.

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.

Tanzania Capital Market Players

The Tanzanian capital market is composed of 27 listed equity securities, 6 custodians, and 13 brokers.

DSE Listed Companies

Company	Security Code	Activity	IPO Price (TZS)	September 8th, 2020 Price (TZS)
CRDB Bank	CRDB	Banking	350	150
DCB Commercial Bank (DCB)	DCB	Banking	380	265
Dar es Salaam Stock Exchange	DSE	Bourse	500	890
East African Breweries	EABL	Alcoholic Beverages in Kenya, Uganda, Tanzania and Mauritius	2,300	3,680
Jubilee Holdings	JHL	Insurance	5,860	4,560
Kenya Airways	KA	Air Transport	215	80
Kenya Commercial Bank (KCB)	KCB	Banking	440	760
Maendeleo Bank	MBP	Banking	500	490
Mwalimu Commercial Bank	MCB	Banking	500	500
Mkombozi Commercial Bank	MKCB	Banking	1,000	780
Mucoba Bank	MUCOB	Banking	250	400
National Investment Company	NICO	Financials	300	165
National Microfinance Bank (NMB)	NMB	Banking	600	2,340
National Media Group (NMG)	NMG	Media	3,600	385
Precision Air Services	PAL	Air Transport	475	400
SWALA Gas and Oil	SWALA	Oil & Gas Sector	500	490
Swissport Tanzania	SWIS	Logistic Services. Airports handling of passengers and cargo	225	1,180
Tanzania Breweries	TBL	Alcoholic beverages, fruit beverages and non-alcoholic beverages within Tanzania	550	10,900
Tanzania Cigarette Company	TCC	Manufacturing, marketing, distribution and sale of cigarettes	410	17,000
Tanga Cement Company	TCCL	Production, sale and marketing of cement	300	600
TOL Gases	TOL	Industrial Sector. Production and distribution of industrial gases,welding equipments, medical gases	500	600
Tanzania Portland Cement	TPCC	Production, sale and marketing of cement	435	2,160
TATEPA	TTP	Growing, processing, blending, marketing and distribution of tea and instant coffee	330	120
Uchumi Supermarket	USL	Supermarkets	250	5
Vodacom Tanzania	VODA	Telecoms	850	850
Yetu Microfinance	YETU	Banking	500	550

Sources: Dar es Salaam Stock Exchange (DSE)

Last Update: 9th September 2020

March 17, 2021

Tanzania Launch 25-Year Treasury Bond With 15.95% Coupon

The Bank of Tanzania, on behalf of the Government, is announcing the launch of a 25-year Treasury bond on Wednesday, 21st April 2021.

The bond will have the following main features:

Fixed coupon of 15.95%.
Interest payable semi-annually.
Exempt from withholding tax.
Listed at the Dar es Salaam Stock Exchange.

In its press release, BOT explains that the bond in an addition to the existing Treasury bond maturities issued by the Government and is a continuation of its efforts to lengthen the maturity profile of domestic debt, develop the country’s financial markets, raise funds for long-term development projects and provide an anchor for other market instruments such as mortgage financing and corporate bonds.