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| Mr Gupta |
The Dar es Salaam Stock Exchange (DSE) is ahead of other East
African bourses, securities experts say.
The DSE leads others by introducing second segment market that
target start-up companies, especially Small and Medium Enterprises (SMEs), which
have been left out from the main markets due to stringent conditions.
The Kenya’s Standard Investment Bank Director of Corporate
Finance, Mr Amish Gupta, said the SMEs are one of the important segments for
propelling the economic growth but they normally lack capital.
“DSE has a good platform for growing larger as the mining sector,
telecoms can be tapped to (Enterprise Growth Market (EGM)),” Mr Gupta said on
the sidelines of the investors briefing session on Kenya Airways (KQ) right
issue.
The Director said EGM encourages SMEs to go to DSE for
funding, a move that makes them benefit from experience of running and keeping
books as per the bourse standards. He was speaking in Dar es Salaam on Tuesday.
“This will also push the bourse’s market capitalization and
contribution to GDP,” Mr Gupta who flew from Nairobi to Dar es Salaam to
present KQ’s “Project Mawingu” to investors, said.
Data shows that DSE’s market capitalisation as a percentage of
GDP is 12 per cent compared to 41 per cent of Nairobi Stock Exchange (NSE).
This means DSE market capitalisation grows by one per cent
yearly. It started operations 12 years ago.
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| Mr Shirima |
Tanzania Securities Chief Executive Officer Moremi Marwa said
the reason behind was limited supply as in the last 12 years only 10 companies
were listed on the Dar bourse.
“Lack of liquidity also contributed to the small
contribution to GDP as market turnover ratio is merely 2 per cent compared to
14 per cent of Kenya,” Mr Marwa told the ‘Daily News’ yesterday.
Kenya, the oldest stock exchange market in the bloc has no
EGM segment and left most of the companies relying on the main markets thus
blocking out the SMEs into tapping the market.
Uganda Securities Exchange and Rwanda Over the Counter also
have only main market.
The Capital Markets and Securities Authority (CMSA) said last
month that the operation of EGM will start after sensitizing the public and
investors, later this year.
CMSA’s Manager for Public Relations Charles Shirima said:
“Four applications were received and in the mean time the process of issuing
licence to the potential advisers is on the final stage.”
Mr Shirima said the authority has received a number of inquiries
from potential investors even before the alternative market has started to
operate but hesitated
Source: The Daily News,
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