TANZANIA: TOTAL investment value of the capital markets increased by 31.2 per cent until the end of January this year, thanks to the
government initiatives in driving economic growth and development in the country.The CMSA’s Chief Executive Officer (CEO) CPA Nicodemus Mkama said the initiatives have resulted in an increase in value to the tune of 37.3tri/- until the end of January this year from 28.4 tri/- registered at the end of January 2021.
“Various initiatives including the development of thematic and innovative capital market products and services, promotion of technology-enabled financial service distribution channels, and increasing the number of certified capital market professionals have opened new market frontiers,” said Mr Mkama during the capital market stakeholders’ workshop on the implementation of the Financial Sector Development Master Plan (FSDMP).
He stressed that the government through the regulator of the capital market has been at the forefront in undertaking initiatives that have positioned the financial markets and capital markets in particular at higher heights.
Additionally, a 61.6 per cent increase in trading turnover on the Stock Exchange to 9.3tri/- during the three years ended January 31 this year from 5.8tri/- recorded during the corresponding period.
Speaking on the implementation of the Master Plan progress, Mr Mkama said the plan registered several successes and some of the notable strides include the issuance of the first Green Bond with the big ticket size in Sub-Saharan Africa dubbed ‘Kijani Bond’ raising 171.83bn/- to finance environment-friendly projects and businesses.
This Bond attained a success rate of 430 per cent. Similarly, the issuance of the first Gender Bond in Sub-Saharan Africa dubbed ‘Jasiri Bond’ raised 74.2bn/- to finance Small and Medium-sized Enterprises (SMEs) owned and operated by women, as well as those owned by men but producing goods and services that have direct impact to women.
In addition, the Tanzanian capital market has celebrated the issuance of a multicurrency Social Bond dubbed “Jamii Bond” raising a tune of 212.94bn/- to finance sustainability projects and businesses.
Mr Mkama stressed that to support the development of sustainable financing instruments, Tanzanian capital markets last week launched the Initial Public Offer (IPO) of Tanga UWASA Water Infrastructure Green Revenue Bond to raise 53.12bn/- to finance water infrastructure improvement and environment conservation in Tanga city.
On her part, Permanent Secretary for the Ministry of Finance Dr Natu El-Maamry Mwamba said as a strategy to spur effective and coordinated development of the financial sector in the country, the ministry in collaboration with other financial sector stakeholders developed the 10-Year FSDMP for the period 2020/21 -2029/30.
The main objective of the Master Plan is to have a stable, sound, efficient and inclusive financial sector that contributes significantly to resource mobilisation for the economic growth and development of our country.
“The Master Plan articulates strategic initiatives that are being implemented by all financial sector stakeholders in alignment with specific objectives and supplemented with key strategic interventions, targets, and key performance indicators to ensure that the ultimate goal of having a stable, sound, efficient and inclusive financial sector is attained,” said Dr Mwamba.
He urged all players in the capital markets to keep up with the innovation journey and effectively contribute towards the successful implementation of the targets outlined in the Action Plan for the Capital Market Subsector to fulfill the Master Plan objectives.
“With the current pace, I am confident that the collaborative endeavours among stakeholders within the various financial subsectors will facilitate an increase in the contribution of the financial sector to the Gross Domestic Product (GDP) from 3.7 per cent which was recorded in 2018 to the desired 10 per cent by end of 2030,” he added.
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