Stock market investors up by 132pc

Dar es Salaam. The number of investors - participating in trading activities at the Dar es Salaam Stock Exchange (DSE) - has more than doubled during the past few months as promoters and regulators bring the market closer to the people.

The Capital Markets and Securities Authority (CMSA) and the DSE have been undertaking several stock market awareness creation campaign programmes that have seen the number of investors at the DSE rising from about 200,000 in August last year to the current 465,000, according to the CMSA director of research, policy and planning, Mr Nicodemus Mkama.

The initiatives in question include the capital markets competition for university students as well as several other schemes that are being undertaken by the DSE with an aim of imparting the public with the necessary knowledge on the opportunities provided by the Exchange for capital raising and for investment.

Apart from students, the CMSA’s awareness programme also targets the general public in beefing up capital markets and financial literacy in which regard the authority’s experts have made several presentations at gathering for accountants, engineers, lawyers and legislators among others.

“So this competition, coupled with other programmes, has helped to double DSE investor base from about 200,000 in August last year to about 465,000. There are also over 120,000 others who have invested with the Unit Trist of Tanzania collective investment schemes,” said Mr Mkama.

And, in what emphasises the significance of the stock market in the economy, he said going by the current market capitalisation, the DSE currently accounts for 38 per cent of Tanzania’s gross domestic product.

Going by this trend, the contribution of the capital markets industry in the gross domestic product will also grow from the existing 38 per cent.

Such initiatives have seen the CMSA being named as the Most Innovative Capital Market Regulator in Africa – an award it received on September 19, 2016, in New York.

Before the win, CMSA was ranked on position four in Africa after South Africa, Namibia and Botswana. “We just started the challenge last year, but unlike in the past when Tanzanians used to go abroad, other countries are now coming to learn from us with a view to see how they can replicate the students’ competition in their respective countries,” said Mr Mkama.

And, these initiatives seem to have won the heart of the government which has promised to continues with implementation of strategies for sustainable environment, policy, legal and practical promotion of investment through the capital markets.

“In an effort to build the capacity and expertise to the participants of the capital markets, the Authority should continue to provide more training focused on increasing the number of practitioners of capital markets,” the Deputy Finance and Planning Minister, Dr Ashatu Kijaji said during a ceremony to award winners of the capital markets competition for university students in Dar es Salaam last week.

She urged CMSA to improve the public education and provide more services to the different parties in implementing the critical role of the authority in developing the capital markets in the country.

This year’s competition attracted 7791 participants from various universities and higher learning institutions, according to the CMSA chief executive officer, Ms Nasama Masinda

The first part of the competition featured Questions and Answers (Quiz Competition) and respondents were furnished with 100 questions which were answered using mobile phones.

The second part of the competition featured the Writing of Essays (Essay Competition) where the students were required to use concrete examples in writing an essay on “Opportunities and benefits of using the capital markets in secure financing for the company’s operations and development projects”.