Law that compels telecom firms to list on stock exchange for review

Arusha. The government has expressed its willingness to return to the negotiation table with stakeholders in the telecommunications sector to review the implementation of the law requiring telecom companies to sell 25 percent of their shares to the public through the Dar es Salaam Stock Exchange (DSE).

Vodacom Tanzania was the first telecom company to comply with the Electronic and Postal Communications Act (Epoca) and the 2016 Finance Act by registering and selling 25 percent of its shares to the public through the DSE.

When Vodacom entered the stock market, the government encouraged Tanzanians to participate by purchasing shares after reviewing and understanding the company’s prospectus.

Speaking on Thursday, 20 February 2025, during a working session with officials from his ministry and stakeholders to discuss the implementation of the 10-year Digital Economy Strategy (2024–2034), Minister for Communication and Information Technology, Jerry Silaa, reaffirmed the government's readiness to engage in dialogue.

Silaa noted that while companies like Vodacom have taken steps to comply with the law, challenges have emerged that require further review and amendments.

“The government, in collaboration with stakeholders, will conduct an assessment of the progress made so far to refine the process and ensure that the telecommunications sector remains productive and beneficial for all parties,” Silaa said.

“I often get asked when other companies will follow suit, but based on your input, it appears that the performance of the early adopters hasn’t been satisfactory. I believe the best way to grow any sector in this market-driven economy is to allow market forces to prevail.

“When the government starts imposing strict conditions, we end up with situations like this. While I don’t have an exact assessment, your observations hold some truth,” he added.

Silaa stressed the importance of the government and stakeholders coming together to chart a more effective path for these companies to operate, aligning with the expectations of President Samia Suluhu Hassan.

“We draft laws to streamline processes, not to restrict them. Laws are not sacred texts. We have Members of Parliament here, and the Parliamentary Committee is present as well. I think this is the right time for us to sit down and develop a better framework for these companies to operate, especially considering the guidelines and vision of President Samia Suluhu Hassan, who has made significant efforts to improve the investment climate in the country,” Silaa concluded.