The Dar es Salaam Stock Exchange (DSE) has embarked on a nine-month promotion of the Enterprise Growth Market (EGM), that intends to help small and medium enterprises (SMEs) raise capital through the bourse.The promotion, dubbed ‘wekeza inalipa’ literally translated as ‘invest, it pays,’ seeks to educate and create awareness among SMEs to access relatively cheap capitals through the bourse’s second window - EGM, which has lenient rules for start-ups and on-going businesses.
DSE Chief Executive Officer Moremi Marwa (pictured) said the resolve to embark on the campaign hinges on the bourse’s profound role of offering the required long-term financing to identified feasible projects.
“DSE appreciates SMEs as the key vehicle for wealth creation, with huge potential to contribute substantially to real economic growth,” Mr Marwa told reporters yesterday.
He added: “Even before the campaign, we have received applications from three firms seeking to raise capital through EGM…this shows that some have already started seeing the potential within the capital market.”
Mr Marwa said the cost of going through the entire process of raising the required capital through the equity market -during primary offer to listing -is a mere two per cent of the total capital raised.
“The minimum amount (that can be raised through the market) is 200m/-,” said the DSE CEO during the launch of the nine month promotion.
“The minimum amount (that can be raised through the market) is 200m/-,” said the DSE CEO during the launch of the nine month promotion.
Listing at the main markets required an issuers to have a minimum of 1,000 shareholders, with three consecutive years of profitability, among others rules.
SMEs, most of which operate in financial difficulties, can acquire the required capitals through commercial banks, microfinance institutions and government or donor funded programmes.
SMEs, most of which operate in financial difficulties, can acquire the required capitals through commercial banks, microfinance institutions and government or donor funded programmes.
DSE’s Programmes and Projects Manager, Magabe Maasa said raising capital through the EGM is an available opportunity that SMEs have not tapped yet.
“SMEs should take advantage of this opportunity as they only need to come up with a saleable business idea and leave the rest to the bourse,” Mr Maasa said.
Consnet Group Director, Santus Mtsimbe, said the campaign evaluation would be conducted in daily basis and information shared in various outlets, including social media -facebook, twiter, youtube and blogs.
“SMEs should take advantage of this opportunity as they only need to come up with a saleable business idea and leave the rest to the bourse,” Mr Maasa said.
Consnet Group Director, Santus Mtsimbe, said the campaign evaluation would be conducted in daily basis and information shared in various outlets, including social media -facebook, twiter, youtube and blogs.
In the second quarter of this year, DSE also partnered with ToP100 midsize companies initiative to create awareness toward opportunities that the bourse offers for SMEs.
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania
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