What is the ownership structure of the stock exchange in your country?

Dar es Salaam Stock Exchange is set up an a non-profit company. It is a private mutual entity limited by guarantee without share capital.

Members of the DSE include listed companies, licensed dealing members (brokers and dealers), institutional investors, investment advisory firms and other institutions with an interest in the development of the exchange.

What immediate and mid-term developments is the exchange pursuing?

Our short- and medium-term plans include encouraging more listings through increase public awareness and education of potential issuers and investors, actively participating in advocacy on policy development for issues related to the development of the capital market, that is privatisation through listing into the exchange and implementation of legislative actions such as the Mining Act and EPOCA, both of 2010, introducing new products and additional instruments such as the micro-savings products (M-Akiba), financial derivatives, collective investment schemes and REITS.

We will also implement proposed measures that will result in creation of additional liquidity in the exchange, for example by increasing the number of intermediaries that will engage existing and potential investors, and also introducing measures that will increase our efficiency in human and ICT infrastructure resources.

Another target is to initiate actions towards implementation of the DSE demutualisation as recommended in the 2012 DSE Demutualisation Study.

Do you plan to sell your shares to the public to fund these projects?

DSE will from the next financial year start implementation of the recommendation of the demutualisation study of 2012. This is after DSE has experienced three years of financial stability, sustainability and profitability. These are key attractive aspects of any capital raising and listing intent.  

What are the timelines?

The process will involve changing DSE into a private company limited by shares; carrying out the valuation of DSE to determine the value of the company, its business and shares; changing the company from a private to a public one whose shares can be freely transferred; engaging various advisers in capital raising and listing, including preparation of selling and listing documents; upon approval by the capital markets regulator, offering of shares to the public followed by self-listing. The process is expected to take two years — 2015 to 2017.

Are there other companies intending to list on the bourse?

Swala Oil & Gas (T) will list in the first week of August following a successful capital raising that was oversubscribed while Uchumi Supermarket has also been approved by the regulator for cross-listing at the exchange and will be listed at the DSE in the next few weeks.

Another two applications are going through our approval processes and may be listed this financial year.