Govt to reassess telecom companies' necessity to list shares on DSE

Arusha. The government has announced plans to reconsider the law that mandates telecom companies to list 25 percent of their shares on the Dar es Salaam Stock Exchange (DSE).

This move is part of an effort to assess the law's effectiveness and address the challenges faced by telecom companies in the country.

Currently, only Vodacom Tanzania has complied with the stipulations set out in the Electronic and Postal Communications Act (Epoca) of 2020 and the Finance Act of 2016, which require telecom companies to list 25 percent of their shares on the DSE.

Other telecom operators are still in the process of meeting this obligation.

The Minister for Communications and Information Technology, Mr Jerry Silaa, made the announcement on Thursday, February 20, 2025, during a working session with ministry officials and stakeholders to discuss the country’s ten-year digital economy strategy (2024-2034).

While acknowledging the challenges faced by telecom companies, including Vodacom, Mr Silaa highlighted that the performance of listed companies has not been as strong as anticipated.

He suggested that a more market-driven approach might be beneficial.

“We are receiving many questions about when other companies will join the listing process. But, as your explanations show, the performance of those who have already listed hasn’t been great. I believe the best way to grow any sector in this market economy is to let market forces drive it,” remarked Mr Silaa.

He added that the government, in collaboration with stakeholders, would review the steps taken thus far and explore ways to ensure continued growth and profitability within the telecommunications sector.

“We create laws to make things easier, not to restrict ourselves. Laws are not set in stone. There are Members of Parliament here, and the Parliamentary Committee is also involved. I believe now is the right time for us to sit down and design a better framework for these companies to operate,” Mr Silaa explained.

Current situation

The Tanzania Communications Regulatory Authority (TCRA), Director-General, Dr Jabiri Bakari, confirmed that the legal requirement for telecom companies to list on the DSE remains in place.

He noted that companies are at varying stages of the listing process.

According to DSE regulations, listed companies are required to publish annual financial reports, providing greater transparency and allowing both the government and the public to gain a clearer understanding of the financial health of the respective companies.

Zan Securities CEO, Mr Raphael Masumbuko, emphasized the importance of this transparency for accurate tax assessment and ensuring compliance with revenue laws, thereby contributing to a fairer tax system.

Mr Masumbuko also explained that the requirement for telecom companies to list on the DSE arises from the fact that many of their major shareholders are foreign investors.

By selling part of their shares on the domestic market, local citizens can benefit.

“Companies listed on the stock exchange can become major taxpayers due to increased efficiency and transparency,” said Mr Masumbuko.