According to CORE Securities Dar es Salaam Stock Exchange (DSE) Weekly Market Report for the week ended Friday January 29th 2016, the market total turnover…
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 9th 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 31st 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 31st 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 9th 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)|
|DCB Commercial Bank (DCB)||DCB||Banking||380||265|
|Dar es Salaam Stock |
|East African Breweries||EABL||Alcoholic Beverages in Kenya, Uganda, Tanzania and Mauritius||2,300||3,680|
|Kenya Airways||KA||Air Transport||215||80|
|Kenya Commercial Bank (KCB)||KCB||Banking||440||760|
|Mwalimu Commercial Bank||MCB||Banking||500||500|
|Mkombozi Commercial Bank||MKCB||Banking||1,000||780|
|National Investment Company||NICO||Financials||300||165|
|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|
Sources: Dar es Salaam Stock Exchange (DSE)
Last Update: 9th September 2020
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