Capital Markets and Securities Authority (CMSA)
This was said on Tuesday in Dar es Salaam by the CMSA Chief Executive Officer Nasama Massinda, when giving an overview of the Enterprise Growth Market (EGM) which was launched by Prime Minister Mizengo Pinda on the same day.
She outlined the challenges facing the sector as the low awareness of the stock market, capacity of staff and licensed dealers.
She said CMSA’s responsibilities can only be achieved through collaboration with the other key players including the financial sector regulators and the market.
“The National Capital Markets Master Plan will enable our country to address the issue of resource mobilisation through the capital market as a national agenda thereby unleashing the capital market’s potential in the development of our economy, she said.
CMSA strategic plan has proposed that a national committee be established to spearhead the development and implementation of the NCMMP, she added.
According to her, this has been the approach of successful emerging markets such as those of Malaysia and Thailand.
She said the authority has a number of companies that have shown interest in issuing shares to the public and listing under the EGM segment.
“We encourage entrepreneurs to utilise the capital markets for growth of their enterprises as EGM is a market segment on which organisations can grow,” she noted.
Explaining why some companies that are eligible for listing fail to do so she said there are a number of reasons which make them to do so.
One is the low awareness on the benefits of selling shares and listing in the capital markets.
The other is the fear of transparency and compliance to the continuous listing obligation, she said.
She mentioned presence of non formalised business and fear of relinquishing control among the founders as company directors as another reason.
Any company that intends to issue shares and list in the capital markets must meet some criteria including appointing a nominated advisor, furnishing a five year business plan as well as an independent technical feasibility report prepared by the advisor.
Public shareholding should be at least 20 percent of the issued shares and the company must prepare a prospectus which should be duly approved by the CMSA.
Launching the EGM, Prime Minister Mizengo Pinda assured that the government is committed to ensuring that a favourable environment for sustainable capital markets is put in place to enable more locals and foreigners participate in growing the economy and livelihood of Tanzanians
He said ordinary Tanzanians savers can participate in various ways including purchaing securities issued by some listed corporations, formation of investment clubs and collective investment schemes and partnering with foreigners.
“I urge capital markets to continue being innovative and create products that will enable Tanzanians to participate in the industry for investment and realisation of capital for their ventures,” he urged.
Experts say the EGM segment is designed to enable startup, small and medium enterprises that cannot meet the requirements of the Main Investment Market Segment (MIMS) of the DSE to access the capital markets for capital raising, diversification and undertake other corporate services.
The market will exist in conjunction with, and complement the existing MIMS at the exchange.
SOURCE:
THE GUARDIAN
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