DSE, Top 100 Survey partner on enterprise promotion

The Dar es Salaam Stock Exchange (DSE) formalised a strategic partnership with Tanzania’s Top 100 Midsize Companies Survey (Top 100 Survey) for awareness raising and luring small companies to join the Enterprise Growth Market (EGM).

Under newly inked deal, DSE offered 20,000 US dollar (over 32m/-) sponsorship, with expectation of enticing Small and Medium Enterprises (SMEs) to raise relatively cheap capital from the public.

DSE’s Chief Executive Officer Moremi Marwa (pictured) said many SMEs focus on commercial banks, microfinance institutions, government and donors as their capital sources.

“It’s unfortunate that SMEs have not been able to obtain long-term funding for growth,” Mr Marwa told reporters, adding: “EGM is an additional source that provides long-term financing.”

DSE believes that its strategic partnership with the Top 100 Survey will help to cement close working relationship with the widespread SMEs and share financing opportunity available at the alternative market segment.

EGM was introduced over six months ago but is yet to attract a single company so far as some logistics, including regulations and nominated advisers (Nomads) are not in place.

“This (partnership) is part of our awareness drive to woo potential companies to list on the bourse through EGM,” said Mr Marwa, elaborating that the partnership will create a mutually beneficial relationship and enable the market to get SMEs for listing from the survey.

The bourse’s current market capitalisation stands at 14trn/-, about 30 per cent of the country’s GDP estimated at 45trn/-. But, if measured on the basis of only 11 listed local firms, the market capitalisation accounts for hardly 10 per cent or 4trn/- of the GDP.

Financial analysts describe the level of capitalisation on the bourse as insignificant compared to the existing potential. Only 180,000 investors, 0.5 per cent of the population and less than one per cent of estimated 20 million active buyers and sellers have so far bought shares.

KPMG partner Ketan Shah said the group expect a fruitful relationship with the bourse for the benefit of both SMEs and stock traders.

The Top 100 Survey, which has entered its third year, is an initiative of KPGM and MCL to identify fastest growing medium sized companies to showcase their business excellence and highlight some of successful entrepreneurship stories.
Source: The Daily News, reported from Dar es Salaam, Tanzania
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