Dar-es-Salaam, Tanzania, September 6
2012 – IFC, a member of the World Bank Group, NIC Capital and the
Dar-es-Salaam Stock Exchange are hosting a workshop for senior government
and financial market officials, investors, and representatives of financial
institutions to support the development of local capital markets in Tanzania.
Participants in the workshop, which takes
place on September 6, will discuss how to make Tanzania’s capital markets
stronger, so more long term funding is available in the country. Issues
addressed will include improving the regulatory environment for bond issues
in Tanzania, and building skills of actors in the local markets.
Dan Kasirye, IFC Country Manager for Tanzania,
said, “Financing Africa’s development requires long term investment –
especially in sectors such as infrastructure, industry, housing and microfinance.
Local bond markets can be an important source of this funding as they mobilize
funds from local and international investors, making them available for
economic development. “
Irungu Nyakera, Managing Director NIC Capital,
said, “Local Bond Markets are an integral part of local capital markets
without which, there would not be liquid cash available for companies to
grow, the economy to develop and the government to invest in. Bonds help
raise capital to build necessary infrastructure in tune with the overall
long-term and short-term objectives of the borrowing corporations or governments.”
Gabriel D Y Kitua, the Chief Executive Officer
of the Dar es Salaam Stock Exchange, said, “Dar es Salaam Stock
Exchange has come of age and can now facilitate listing of companies of
all size, corporate bonds of any class, sovereign and sub sovereign bonds.
During the last 12 months, the market capitalization more than doubled
while a substantial achievement was recorded in secondary trading of bonds.
It is time companies, the Government, Municipal Authorities and investors
turn to growth opportunities through the capital markets.”
The workshop was supported by Efficient Securities
Markets Institutional Development (ESMID) Africa, a joint program by IFC,
World Bank and Swedish International Development Cooperation Agency (SIDA),
which develops securities markets to finance priority sectors such as infrastructure,
housing and microfinance.
In Africa, the ESMID program works in Kenya,
Uganda, Tanzania, Rwanda, and Nigeria, where it helps simplify procedures
for issuing and trading bonds; builds capacity of market participants;
and spread the concept of securities markets regionally.
ESMID’s work with local authorities has
developed a framework for regional bond issues in East Africa and helped
shorten the approval process for new bond issues in Tanzania from about
270 days to 60 days. In 2010, ESMID supported the first local currency
bond issue by a microfinance institution - PRIDE Tanzania.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, mobilizing capital in international financial markets, and
providing advisory services to businesses and governments. In FY12, our
investments reached an all-time high of more than $20 billion, leveraging
the power of the private sector to create jobs, spark innovation, and tackle
the world’s most pressing development challenges. For more information,
About Dar es Salaam Stock Exchange
DSE is a sole Stock Exchange in Tanzania;
The DSE facilitates the Government and companies to raise funds/capital
through the issuance of equities and debt securities. DSE’s mission
is to provide a responsive securities exchange that promotes economic empowerment
and contributes to the country’s economic development through offering
a range of attractive and cost effective products and services. Over 16
years of its operations DSE has managed to mobilize investment of more
than USD 1.85 billion for both equity and bond market segments. Currently
the DSE Market Capitalization stands at USD 8.16 billion and outstanding
bonds are worth USD 1.45 billion. For more information, visit www.dse.com.
About NIC Capital