Tanzania Capital Markets Report

DSE Dar Es Salaam Stock Exchange

Tanzania Capital Markets Executive Summary

The Dar es Salaam Stock Exchange (DSE) market capitalization reached TZS22tn in August 2016 from less than TZS6tn in 2010, growing at a rate of 110% per year over the past 5 years.

The liquidity of the Tanzanian stock market grew at a rate of 56% annually since 2010, reaching an average turnover of over TZS800b per year.

Currently (2016), there are 24 listed companies at the DSE, 10 licensed brokers and 3 custodian banks.

Table of Contents

History of Capital Markets in Tanzania

Tanzania Capital Markets Players

Dar es Salaam Stock Exchange Listed Companies

Stock Exchange Brokers in Tanzania

Tanzania Outstanding Government/Corporate Bonds

Dar es Salaam Stock Exchange Performances

Tanzania Indices Performances

Tanzania Stocks Performances

Tanzania Bonds Performances

Tanzania Capital Markets Outlook

History of Capital Markets in Tanzania

In 1996, the Tanzanian stock exchange was incorporated as a private company limited by guarantees (a non-profit making body) and became operational in 1998.

The first company to list at DSE was Tanzania Oxygen Limited (DSE:TOL) in 1998, which was also the first state-owned company selected for privatization through the capital markets.

This was followed by Tanzania Breweries Limited (DSE:TBL), 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).

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

These include TATEPA, CRDB Bank, DCB Commercial Bank, and Precision Air that listed at the DSE during 1999–2011.

The latest company to list at DSE is Mucoba Bank (DSE:MUCOBA), after raising a capital of more than TZS2b during its IPO in June 2016.

RELATED:  Dar es Salaam Stock Exchange Weekly Report: November 18th-25th 2016

In 2013, the DSE launched a second tier market, the Enterprise Growth Market (EGM) with lower listing requirements.

The EGM is designed to attract small and medium companies with high growth potential. So far, the EGM has attracted 5 companies, including YETU Microfinance Bank, Mkombozi Commercial Bank, Maendeleo Commercial Bank, Mwalimu Commercial Bank, and Swala Oil & Gas.

In 2015, the DSE was demutualized, i.e. it changed its registration status from being limited by guarantee to being limited by shares.

Moremi Marwa, CEO of DSE, explained that the bourse aims at maximizing the value of investment through the process of demutualization.

The DSE is the third Exchange in Africa to demutualize after the Johannesburg Stock Exchange (JSE) and the Nairobi Securities Exchange (NSE).

In May 2016, the DSE launched its own IPO of 15m ordinary shares at TZS500 per share. The Tanzanian bourse raised TZS35.8b from more than 3,000 investors, which is equivalent to 377% in excess of the targeted capital.

Following the oversubscribed IPO, the bourse exercised the green shoe option of 35% to take up an additional TZS2.6b.

After exercising the option, the total capital raised from the DSE IPO is TZS10.1b. In July 2016, following the successful DSE IPO, the Tanzanian bourse listed itself at the secondary market under the ticker “DSE”.

Tanzania Capital Markets Players

Login To Read The Full Report

If you don’t have an account, free register here.