The Ministry of Finance and Economic Affairs said the commencement of
Enterprise Growth Market (EGM) will be known next month.
The (outgoing) Minister for Finance, Mr Mustafa Mkulo, said the
'modified' regulations are expected to be approved this month to trigger the
establishment of Enterprise Growth Market Advisor (EGMA).
"Technocrats are finalising the recommended changes on the
regulations and will be gazetted this month... I want to incorporate the
commencement date of the EGM in this year's budget speech," Mr Mkulo told
the 'Daily News'.
The minister was the chief guest at the farewell and welcoming function
for Capital Market and Securities Authority (CMSA) chairperson and CEO on
Wednesday night.
The out-going Chairman is Dr Idris Rashid and CEO is Dr Fratern Mboya,
while the incoming Chairman is Ms Grace Rubambey and CEO is Ms Nasama Massinda.
The minister, apart from showering praise to Dr Mboya and Dr Rashid, asked the
CMSA new team to forward their plans and budget for this year later this month
to enable him incorporate it in this year's government budget.
"The government is keen to see capital markets being fully
utilised by Tanzanians and foreigners in raising capital at all levels...
(especially) the newly emerging sectors like gas, oil and mining," Mr
Mkulo said.
He urged CMSA to increase its education and awareness fund so as to
reach many would-be capital seekers to Dar es Salaam Stock Exchange (DSE) hence
attracting portfolio investments and not only waiting for direct investments.
The New CMSA Chairperson, Ms Rubambey, said companies in telecoms,
power generating, mining and other sectors should consider raising capital
through local capital markets.
She said: "The government through the Ministry of Finance will
continue to support the capital markets because it is aware of its contribution to economic
development".
Dr Mboya said his success at the CMSA helm was not without his Chairman
Dr Rashid and the new chairperson Ms Rubambey. He left CMSA to open his EGMA
firm.
The new chair and CEO were among the team that was directly responsible
for creation of the CMSA in mid 1990s. Dr Rashid, the former central bank
governor, was also the key person in the creation of the authority that was a
unit at BoT.
CMSA has picked four EGMA firms, but they have expressed concern over
down payment capital of 2bn/- in cash, saying the condition is prohibitive and
unrealistic. They have instead asked for an insurance bond of equivalent
amount.An industry source said the Ministry of Finance is amending the 2bn/- capital clause.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinaza
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