Tanzania: Two banks will enter the DSE in 2016
This would raise the number of listed financial institutions from seven to nine.Two financial institutions are expected to enter the Dar Es Salaam Stock Exchange (DSE) this year, stockbroker Orbit Securities has revealed.
This would raise the number of listed financial institutions on the stock exchange from seven to nine. In total, the DSE has a total of 23 listed companies.
The general manager of Orbit Securities, Juventus Simon, told Tanzania Daily News that it was too early to name the banks, but said their IPO "will begin anytime after the second half of the year starts".
The DSE has multiplied development efforts in recent years and recorded in 2014 a capitalisation reaching 17.301 billion Tanzanian shillings (€7.1 billion), up 27.8 per cent on the previous year.
The Bank of Tanzania (BoT)'s Financial Stability report of March 2014 also showed that the banking and financing index (BI) was the main driver of growth, with a 62.1 per cent appreciation. Industrial and allied share index increased by 27.0 per cent and TSI 46.1 per cent.
The bond market also recorded significant growth, with 960.76 billion Tanzanian shillings worth of Treasury bonds with different maturities being listed during the year ending March 2014, equivalent to 6.4 per cent increase from the 903 billion Tanzanian shillings listed during the corresponding period in 2013.