DAR ES SALAAM: YOU can now buy and sell securities listed on the Dar es Salaam Stock Exchange (DSE) from any NMB Bank branch, thanks to the partnership deal signed on Monday between the lender and top stockbroker Orbit Securities.
The financial facilitative service agreement follows NMB’s acquisition of approval to act as an agent of licensed stockbrokers at the Dar bourse from the Bank of Tanzania (BoT) and the Capital Market and Securities Authority (CMSA).
Announcing the two developments before inking a deal in Dar es Salaam on Monday, NMB CEO Ruth Zaipuna said, apart from commercial benefits, the bank has ventured into this line of business to increase the number of equity and debt trading outlets.
“We are announcing the securing of the approval to start selling and buying both shares and bonds listed at DSE through all our 231 branches countrywide and that starts with the signing of this agreement with Orbit Securities,” Ms Zaipuna said, noting that currently a few people invest in the capital and securities market.
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She said the BoT and CMSA approval now allows investors to use NMB’s wide branch network to trade in shares and bonds of firms listed at DSE and also enables it to contribute to the growth and development of the whole financial sector.
Referring to Finscope’s 2023 report, she said only 0.5 per cent of Tanzanians use the capital markets to generate income or raise capital for investment purposes.
“NMB is present in almost all districts of Tanzania which means it reaches more people and increases the number of Tanzanians using the capital and securities market,” she said.
Rooting for NMB to hasten similar agency arrangements with other brokers, DSE acting CEO Mary Mniwasa said the development has been longer overdue in terms of making the stock market vibrant and addressing the limited market outreach of the brokerage firms.
According to her, the strategic deal offers many Tanzanians the opportunity to use and invest in corporate shares and bonds as well as government securities which many could not do because of proximity reasons.
“This is a very big step in the vibrancy and development of DSE and the future looks more promising now for the whole capital and securities market,” she noted.
Mr Alfred Mkombo, who represented the chief executive officer of CMSA, said the NMB financial service is a historic revolutionary feat for not only the capital markets and the financial sector but also the whole national economy at large. Orbit Securities CEO Mr Godfrey Gabriel said the partnership has opened a new chapter in the subsector and ushered in a new era for investors’ participation in the trading of both corporate and government securities.
“These joint efforts make it possible to attain the target set in the Financial Sector Development Master Plan of ensuring at least five percent of all Tanzanians can access capital markets products and services by 2030,” he said.
He said NMB’s innovation prowess and unmatched market outreach and the stockbroker’s huge market experience and its over 60 per cent lion share of all equity trades executed at the bourse are set to make a huge difference not only in the market but also in people’s lives through financial inclusion.
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