DAR ES SALAAM: PRESIDENT Samia Suluhu Hassan’s three years in power has seen the...
capital markets sector record notable performance, including value of investments, attracting more investors and increased combined trading turnover of equities and bonds on the stock exchange.Conducive policy, regulatory and operational environment has been a major driver, according to Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Mr Nicodemus Mkama.
Mr Mkama told the ‘Daily News’ yesterday that economic diplomacy and international relations policy implemented by President Samia Suluhu Hassan have witnessed increased participation of local and international investors.
The authority’s boss elaborated that despite the effects of Covid-19 pandemic and global geopolitical tensions, the Tanzanian capital markets recorded 20.6 per cent increase in total value of investment to 40.1tri/- by end of last month compared to 33.3tri/- recorded by end of February in 2021.
On the other hand, the combined trading turnover of equities and bonds on the stock exchange increased by 87.7 per cent to 11.2tri/- by end of February this year compared to 6.0tri/- during the corresponding period in 2021.
The authority further noted that the Net Asset Value of collective investment schemes had a 297.1 per cent momentous increase to 2.0tri/- as of February 29th in 2024 compared to 500.3bn/- as of February 29th 2021.
The Tanzanian capital market also celebrated issuance of a multicurrency Social Bond dubbed “NMB Jamii Bond” raising 212.9bn/-, a success rate of 284 per cent and it was part of Multicurrency Medium Term Notes (MTN) worth 1tri/- approved by the CMSA.
“The funds raised from the Bond are used to finance social and sustainability projects and businesses, including those owned by the youth. This initiative supports President Samia’s vision on economic empowerment for youth,” Mr Mkama stated.
During the period, the first Green Bond with the bigticket size in the Sub-Saharan Africa dubbed “CRDB Kijani Bond” was issued, raising 171.83bn/-, a success of 430 per cent and was part of Multicurrency Medium Term Notes (MTN) worth 780bn/- approved by the authority.
The proceeds of the bond are used to finance environment-friendly projects and businesses.
This initiative supports implementation of government commitment on Climate Finance to support adaptation and mitigation measures against effects of climate change, he added.
Similarly, issuance of the first Gender Bond in Sub-Saharan Africa dubbed “NMB Jasiri Bond” raising 74.2bn/- to finance small and mediumsized enterprises owned and operated by women, as well as those owned by men but producing goods and services that has direct impact to women has been witnessed in the Tanzanian capital markets.
This bond was also part of the MTN programme worth 200bn/- and attained a success rate of 297 per cent. The bond is listed on the Dar es Salaam Stock Exchange (DSE) and cross-listed on the Luxemburg Stock Exchange (LuxSE).
“This underscores the President’s aspirations in empowering women and promoting gender equality in the country,” he said.
Similarly, the country’s capital markets recorded successful issuance of an Ethical Sharia Compliant Sukuk Bond dubbed “KCB Fursa Sukuk” which raised 11bn/-, a success of 110 per cent.
The funds raised from the Sukuk bond are utilised to finance small and medium sized Sharia compliant businesses.
This augments government’s strategy of having diversified products in the financial sector that attract a wide range of investors with different ethical background and therefore facilitating financial inclusion as enshrined in the Third National Financial Inclusion Framework.
Furthermore, in support of implementation of Government Alternative Project Financing (APF) Strategy launched by Finance Minister Dr Mwigulu Nchemba, the CMSA facilitated issuance of a 10-year Tanga UWASA Water Infrastructure Green Revenue Bond to raise 53.12bn/- for financing water infrastructure improvement and environment conservation in Tanga City.
The Tanga UWASA bond which is an innovative, sustainable blended capital market product with elements of subnational, water infrastructure, green, revenue bond is a milestone pathfinder transaction, showcasing other subnational institutions and municipalities in financing revenue generating projects through capital markets.
Mr Mkama also pointed out that during the three years’ period of Dr Samia in office, the CMSA implemented initiatives that led to increase in certified capital market professionals recognised internationally; increase in licensed market intermediaries and launching of Continuous Professional Development (CPD) Programme.
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