By Fumbuka Ngwanakilala | From Reuters
Up to six companies, most of them banks and micro-finance specialists, could list on Tanzania’s stock exchange this year, the chief executive of the bourse said.
Moremi Marwa told the Reuters Africa Investment Summit he also expected the government to approve regulations for the mandatory listing of shares in mobile phone operators by April.
Like other African bourses, Tanzania’s exchange wants to encourage more firms to list or use the exchange to raise funds via corporate bonds, a potentially cheaper route than borrowing from banks where lending rates can be 18 to 30 percent.
“This year we anticipate five or six IPOs (initial public offerings),” Marwa said in an interview in the commercial capital Dar es Salaam.
“Four listings will be on the Enterprise Growth Market and we anticipate one or two listings on the main market. These IPOs will mainly be from the financial and banking sector,” he said.
Micro-finance firms offer financial services to low-income individuals or those who do not have access to typical banking services.
Read more at Reuters