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Tanzania bars Kenya from its hottest NMB public share sale

Discussion in 'Kenyan News and Politics' started by Sanctus Mtsimbe, Aug 12, 2008.

  1. Sanctus Mtsimbe

    Sanctus Mtsimbe Tanzanite Member

    #1
    Aug 12, 2008
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    http://www.bdafrica.com/index.php?option=com_content&task=view&id=9335&Itemid=5812

    After opting to stay out of Kenya’s biggest share sale in May, Tanzania has deepened its opposition to ongoing efforts to integrate the regional economy by expressly barring Kenyans and Ugandans from taking part in one of its most promising share offers.

    Investors from the two countries, which together with Tanzania were the original members of the East African Community, will not be allowed to buy shares in the National Microfinance Bank (NMB) when the sale begins on Monday.

    Mr Edwina Lupembe, the director general of the Consolidated Holding Corporation (CHC), the department that owns shares in state companies on behalf the government, was quoted saying the share sale would be restricted to individual Tanzanians and companies that are wholly owned by them.


    Fears
    This reluctance by Tanzania to open up its capital markets to foreigners is seen to be arising from fears that trading would destabilise the country’s foreign exchange position.

    Unlike Kenya and Uganda, which have long removed exchange and capital controls from their statute books, Tanzania still relies on restricted currency movements as a macroeconomic tool.

    The rules however appear to be in direct conflict with the East African Customs Management Act, which requires residents of the three countries to be treated as locals when it comes to investment.

    It also sets Tanzania apart from Kenya and Uganda, who have opened their doors to regional investors in compliance with the customs law.

    Last December, Uganda allowed Kenya and Tanzanian investors to buy shares in Stanbic Uganda by according the local resident status. It is under this law that Kenya offered East Africans a chance to buy into Safaricom as residents, an offer that Tanzania declined.

    The National Microfinance Bank of Tanzania enjoys national clout similar to that of Safaricom, Kenya’s leading mobile phone firm, and Stanbic Uganda, the country’s largest bank in terms of branch network.

    It is Tanzania’s second largest bank by assets and its initial public offering of shares was expected to attract investors across Lake Victoria, the natural bond that ties the three countries.


    Forex regulation
    Capital controls remain in place in Tanzania such that movement of foreign exchange is subject to regulation from the Bank of Tanzania. Although Tanzanians are not expressly barred from investing in the other east African countries, they encounter barriers during currency conversion.

    “If they could remove the capital controls, then the sale of IPOs to other east Africans would be possible and easier,” said Rina Karina of Faida Investment Bank.

    The lock-out of Kenyans and Ugandans from NMB throws into the spotlight the uneasy relationship in the customs union. Investment bankers, however, say that the Tanzanian government may be justified in locking out foreigners in the IPO as the country has a small economy and the size of the issue is can be supported locally.

    Suntra Investment Bank chief executive James Murigu said Tanzania’s economy was still so small that it may have little to share with the other countries noting that the IPO itself at Sh3.5 billion is tiny.

    “When you are small, you need to keep all the wealth in the country. That is why Tanzania must have decided to lock out foreigners,” he said.

    The IPO has 105 million shares on offer at Sh35 (Tsh600) each, showing that the total proceeds will be about Sh3.7 billion (Tsh63 billion) – which constitutes 21 per cent of the total stake of the bank.

    The government holds 51 per cent of the bank; Rabobank Nederland 34.9 per cent; National Investment Company (NICO) 6.6 per cent while EXIM Bank Tanzania and Tanzania Chambers of Commerce, Industries and Agriculture (TCCIA) hold 5.8 per cent and 1.7 per cent respectively.

    That the bank was already owned more than 30 per cent by foreigners may have been a factor in limiting more ownership by foreigners. The microfinance bank is still considered a national financial emblem, boasting the largest branch network and number of employees.

    The sale is set to end on September 8.

    Besides restricting participation in IPOs, Tanzania has appeared uncomfortable with cross-listing of shares in the region’s bourses. The Uganda Securities Exchange and the Nairobi Stock Exchange have signed a protocol allowing that.

    NMB conducts out commercial banking serving retail customers, small businesses, and central and local government agencies. In fact, it is the principal commercial bank to the Government for payments nationwide.

    The government sold 49 per cent of the bank in 2005 after conducting an international competitive tender.

    The IPO has been delayed for long as it was first mooted in 2006 and was expected to have been completed by the end of 2007.
     
  2. Wacha

    Wacha JF-Expert Member

    #2
    Aug 13, 2008
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    Safi sana hii. Tanzania should be leading sio kufuata yasiyo na manufaa kwa wabongo.

    Natumaini members hapa wenye uwezo japo kidogo watazichangamkia hizi shares.
     
  3. Sanctus Mtsimbe

    Sanctus Mtsimbe Tanzanite Member

    #3
    Aug 14, 2008
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    Mkuu,

    habri ndo hiyo . . . . Watanzania na waamke sasa, tuache maneno mengi.
     
  4. Sam GM

    Sam GM JF-Expert Member

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    Aug 15, 2008
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    Hapa sio biashara tena huu ni uchuro kidogo kwa sababu biashara inavyokwenda na kufanikiwa ni laid down strategies sio restrictions, kwa mawazo ya haraka utafikiria wamepatia ila ukitazama kwa undani mtu yeyote au kampuni ya Kenya au Uganda wakitaka kununua wanaweza kwa kuregister kampuni bongo, ku-fanya strategic alliance na kampuni yoyote bongo au kumtumia mtanzania kununua. Strategy hii ya restriction imepitwa na wakati kidogo, kwa sababu hata wanaoweka hii restriction si ajabu hawana competitive au operational strategy yoyote ya siku za usoni. Competitive strategy ambayo wanapaswa kuiangalia na pia iwe na timeline ya not more than one year kama wameamua kutumia restriction should involves planning, execution, evaluation and analysis. Na strategy iweze ku-bridge into open market au aggressiveness. Kama tutabaki tu kuwa tunatumia restrictions na hatu-formulate strategy nzuri then hizi hizi mbinu tunatumia zitakuwa zinazaa loop holes ambazo a serious business minded person ata-kubeat in your own game.

    Serikali kwanza inapaswa kujitoa kabisa katika utendaji wa hii bank na isiwe na share yoyote. Kuwepo kwa serikali ndani ya banki hii kunauwa efficiency na autonomy ya kufanya biashara. Tena serikali inavyokuwa na share nyingi zaidi ya shareholders wengine wao ndio watakuwa wanatoa mwelekeo na hasara inapotokea ndio tutaanza kuona mambo ya ATC wanataka pesa zaidi kutoka serikalini.
     
  5. M

    Mbalamwezi JF-Expert Member

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    Aug 15, 2008
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    Mkuu, unaonekana hujui hasa unachotaka kuongelea hapo juu. Inaonekana hujui kuwa August 2005, kundi la Rabobank na kampuni za KiTanzania waliuziwa 49% kwa open tender. HIyo ndo ilikuwa nafasi ya foreiners. Govt ina retain 51%, of which 21% zitauzwa kwa waTz au makampuni yanayomilikiwa na Watanzania kwa 100%.

    Kutokana na hilo, maoni yako kuwa Foreigners wataform alliance na wabongo ili wanunue shares sijui inakuwaje. Na, ukumbuke kuwa uutaratibu huu unawezesha Tanzanian individuals wanunue hisa kwa uwezo wao.

    Makampuni yote ambayo serikali ilikuwa ina offload hisa zake kulikuwa na avenue ya foreingers, na avanue ya locals pia ili kuweka uwiano mzuri.

    Restrictions za kuuza hisa au kununua hisa zinatokana na regulatory mechanism iliyopo sasa. BoT ilishasema kuwa sheria zaweza kubadilishwa ili Watz wanunue hisa abroad...si suala la kukurupuka tu.

    Mkuu UKitaka kujua athari za kuwasikiliza Wakenya kila wanachotaka, fuatilia sakata zima la Safaricom shares ujue zinavyokwenda, ujue namna gani serikali ya Kenya inavyomficha mmiliki wa hisa fulani katika Safaricom (Sijui ni Osama? Lol!), Na uangalie jinsi Wakenya wpatao 800,000 walivyoingizwa mkenge kwa kufichwa Prospectus hadi hisa zilipoanza kuuzwa, Kimunya akikusudia kuficha information fulani juu ya hasara iliyowahi kupatikana nyuma na ambayo ingevunja nyoyo za investors.

    Je, wajua kama bei za hisa za Safariocom zimeshuka zaidi ya hata ile ya IPO waliokuwa wanatung'ang'aniza tununue? Na hakuna anayelliongelea hilo...leo hii nadhani Watanzania wangekuwa wanachekea chooni kwa maumivu hayo, maana Wakenya wenyewe wanasota sana kurejeshewa refunds kwa waliokosa hisa, na KCB haitaki fedha zirejeshwe kwa mara moja kwa sababu zitayumbisha uchumi...

    Je, Kama zingeondoka say 50 billion katika mzunguko wa fedha Tanzania kwenda kununua hisa za Safaricom, what would have been the consequences?

    Inawezekana tunachofanya Watanzania leo twaonekana washamba kwa sababu hata soko la hisa ndo kwanza linatimiza miaka 10. Elimu ya hisa na uwekezaji hatuna, do you think it is fair kukimbilia tunachoambiwa na wasio na nia njema kwetu?

    Wao wanataka chao kiwe chao, chetu kiwe chao...hebu angalia wanavyofanya visa katika maziwa yetu Tarime tunapoexport...wanasema customs systems zao hazitambui kama tanzania tunaexport UHT Milk, kwa hiyo lazima tulipie 60% import duty, wakati katika EAC Customs Union, tunatakiwa tusilipe hata senti, ila wao ndo walipe hapa... Kwa muda mrefu, Wakenya wamekuwa wakiweka pressure mambo mbali mbali ili kuboresha soko lao (Tanzania) huku wao wakitubani hata kwa kidogo tunachotaka kuwauzia.

    Ni hayo tu mkuu nilitaka kushea na wewe na wengine wenye interest na mambo haya.
     
  6. Mwana wa Mungu

    Mwana wa Mungu JF-Expert Member

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    Aug 15, 2008
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    --------------------------------------------------------------------------------
    NB: hii msg nimeikopi toka kwenye thread ya "Tanzania's nationalism a threat to EAC intergration", i think it can still be useful here. just copied and pasted.

    Tanzania suffered its economy during the former EAC, and now we are very careful on how we step into another mess.It must take time for us to put our both feet into that so called EAC. this is in the head of every Tanzanian you ask. and Tanzanians are so very much united about this, if you don't believe it, go ask any Tanzanian you meet in streets or in offices, you will get the clear picture. We had the wound out of that former thing you know, and we don't want to make another mistake.we can be ready to expand to Saddc or any other country where we think we will benefit than to get into another mess again with Kenyans capitalism.

    Right now, Tanzania is not concentrating on efforts to build EAC, we are concentrating on opening the biggest ever,iron mining centre in Mchuchuma and Liganga where billiions of tons are discovered, and coal mining industry for electricity to sell to other countries like Malawi, mozambique and zambia. we have a huge amount of coal already discovered in tz. We have already discovered oil in southern Tanzania and lake Rukwa basin, and another huge oil resource in Pemba. Hii issue ya EAC imekuwa pressurised sana na Kenyans and Ugandans, kipindi cha safaricom watu walitulia walikuwa hata hawaliongelei,lakini NMB zinavyoanza kuuzwa, watu wanaongea why not that time, why now? kwanini sasa tu wakati watz wanauza hisa, mbona kipindi kenya wanauza safaricom wakenya walitulia kimya? this is vita vya chini vinavyoendelea ndani ya mioyo ya wakenya na watz.

    So, please, East African countries, just wait for us to build ourselves first, tujiweke sawa kwenye sheria zetu to protect our people from risks that may come out of the interractions, and when we are done with that, tis when we can start EAC. kwasasa haiwezekani, kwasababu hakuna umoja kati ya watanzania na wakenya. watanzania wanaona bora waungane na waganda,rwanda na burundi kuliko wakenya. what is happening in NMB IPO share sale, ni vita vya chinichini tu kama vile tu vilivyotokea wakati wa safaricom. tusipoteze muda kwenye vitu ambavyo tunajua haviko moyoni, i would advice kwamba tuendelee na business zingine, hii itakuja baadae. this is my opinion. asante.
     
  7. Sam GM

    Sam GM JF-Expert Member

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    Aug 15, 2008
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    Mbalamwezi,

    Hii info uliyoleta mie sikuwa nayo kabisa, thanks, it makes so much sense!
     
  8. M

    Mtanzania JF-Expert Member

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    Aug 16, 2008
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    Mbalamwezi,

    Hiyo 49% unayoisema iliuzwa kwa strategic investors na foreigner wa kawaida asingeliweza kununua. Hizo shares zilikuwa wazi hata kwa kampuni za TZ.

    Tunachofanya sasa sio biashara na hakiwezi kuisaidia sana NMB. Kama sisi tuliruhusiwa kununua shares za Kenya, kwanini tunaendelea kujifungia badala ya kushindana?

    Biashara inaendelea kwa kushindana na wala sio kwa restrictions ambazo ninaziona TZ.

    Competition inaongeza efficiency, inatakiwa tuanze kwa kujifunza kutoka kwa wenzetu kama Kenya na Uganda na sisi tupate ujasiri wa kwenda ku invest nje bila woga.

    Japo naunga mkono dhana ya Watanzania wengi kushiriki katika kumiliki njia kuu za uchumi lakini naamini mafanikio makubwa yatapatikana kwa kushindana na wengine na wala sio
    kubebwa kama inavyoonekana hili la NMB.

    Wakati tunaogopa kushirikiana kwenye EAC lakini tunakabidhi resources zetu nyingi kwa makampuni ya Europe na China. Je hao ndio wako tofauti na hao majirani zetu?
     
  9. KiuyaJibu

    KiuyaJibu JF-Expert Member

    #9
    Aug 18, 2008
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    Fears
    This reluctance by Tanzania to open up its capital markets to foreigners is seen to be arising from fears that trading would destabilise the country's foreign exchange position.

    Unlike Kenya and Uganda, which have long removed exchange and capital controls from their statute books, Tanzania still relies on restricted currency movements as a macroeconomic tool.

    The rules however appear to be in direct conflict with the East African Customs Management Act, which requires residents of the three countries to be treated as locals when it comes to investment.

    It also sets Tanzania apart from Kenya and Uganda, who have opened their doors to regional investors in compliance with the customs law.

    Last December, Uganda allowed Kenya and Tanzanian investors to buy shares in Stanbic Uganda by according the local resident status. It is under this law that Kenya offered East Africans a chance to buy into Safaricom as residents, an offer that Tanzania declined.

    Ni wazo zuri kulinda watu wako ili waweze kujijengea uwezo wao wenye kwa mujibu wa rasilimali zilipo ndani ya nchi kabla ya kuwa ruhusu wageni.
    Tatizo hapa ni kwamba tutakuwa tunapingana na sheria ambayo serikali ya TZ yenyewe ikiwa ni moja ya nchi zinazounda EAC imekwsha ridhia;kwa kutekeleza tamko la CHC nafikiri tunakuwa tumekiuka mkataba na inaweza ikaleta matatizo baadaye ambayo tunaweza tukaanza kutafuta mchawi ni nani pindi maji ya shingo yatakapo...
     
  10. M

    Mbalamwezi JF-Expert Member

    #10
    Aug 18, 2008
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    Kiuyajibu na Mtanzania,

    Ni vema tukawa waangalifu sana tunapotetea hoja za magazeti juu ya what we call opening up markets for competition. Hakuna anayetaka tujifungie, lakini uangalifu ni jambo la maana sana.

    1. Kama kuna sheria zozote zilizovunjwa na Tanzania kurestrict share issue kwa foreigners, mbona Uganda, Rwanda, Burundi hajalalamika? Hata Kenya ni gazeti moja tu linalotumiwa kwa kampeni za wafanya biashara kulipata soko la Tanzania ndo linaloandika sana habari hizi, mbona seriali yao haipeleki suala hili kwenye EAC Minister's council kulalamika?

    2. Nimeonya kuwa tuwe waangalifu kujua markets opening up. Mfano hai ni Maziwa ya Tanzania Kenya yanapigwa vita sana, Je Wakenya unadhani hawaogopi competition? wanaogp ana ndo maana wanayatoza maziwa yetu 60% import duty illegally, kinyume cha makubaliano ya EAC Customs UNion. Kiwanda cha Maziwa cha Arusha Wakenya wamekinunua kumbe wana malengo ya kukiua, ili waongeze soko la maziwa ya Kenya Tanzania (wamekigeuza kuwa sehemu ya kukusanyia maziwa tu, halafu wanakwena kupack kwao halafu wanarejesha kuuza Tanzania...

    In this case, tumewauzia kiwanda in good business faith, unaonaje uhuni wanaotufanyia? Unafahamu Uhuni wanaofanya Kiwanda cha SPM? Hawataki kiwanda hata kimoja hapa kizalishe kitu kama wanaweza kukiua, ila wanataka wafreeze vyote ilio tuwe tuna import toka kwao.

    3. Issue ya NMB shares, hii ipo kwenye sera za kuibinasfisha ile benki toka 2003. Kwamba wageni wataingia kupitia strategic inbvestor atakayeteam up na locals unaona individual foreignors hawawezi kufaidika? Lengo la biashara ya kuuza hisa si kuwashindanisha wanunuaji, la hasha. ni Kuwawezesha wananchi wako mmoja mmoja wanunue hisa ili wafaidike. Ukiwaacha wageni waje, maana yake unaongeza idadi ya wataonunua hisa hizo bila manufaa yoyote yale. Mfano, Hisa milioni moja ukizigawa kwa waTanzania laki tano, maana yake Watanzania hawa watapata kila mmoja hisa mbili, na hela utazopata baada ya mauzo ni zile zile.

    Lakini ukiwakaribisha wageni tuesme milioni moja wengine, wanunue hisa hizo hizo milioni moja, unadhani Watanzania wako watapata hisa ngapi, na wewe je, utaweza kupata fedha zaidi ya zile ambazo ungechuma kwa Watanzania tu? Utachaokuwa umefanya ni kuigawa keki ya Taifa lako kwa wasiokuwa wako, which means watu wako wataendelea kulia njaa baada ya wageni kuchukua kiasi kikubwa. Dhana nzima ya privatization kwa manufaa ya umma haitakuwepo.

    Hisa hizi Zinapokwenda kwenye stock exchange zinakuwa wazi kwa kila mtu, hao wanaopiga kelele watanunua pale Samora.

    Wakenya ni watu wasioitakia mema nchi hii, chunguza. Kila jambo wanataka wao ndo wafaidike, na pale Tanzania inaposhtuka, wanasema we are against Federation. Wao tukuiwa tunataka kufaidika kihalali kabisa, hawataki hata chembe. Udhaifu huu wa ushirikiano tunauona jamani, au tumespecialize kuji criticize tu?

    Juzi juzi gazeti hilo hilo limendika kuwa Tanzania kukataza mahindi kuuzwa Kenya ni anti Federation. You know what? Eti wanasema wana njaa, kwa hiyo wanataka mahindi.

    Lakini ukiangalia, wanataka mahindi kwa ajili ya SGR (state grain reserves) zao, which means kwa ajili ya matumizi ya baadaye. Kwani sisi hatutaki kuhifadhi for future use? For your info, hawa jamaa imefahamika wana mkataba wa kuiuzia WFP tani milioni moja kila mwaka, kwa hiyo wanataka wachukue kwetu kwa bei ya chini ili wakawauzie WFP kwa bei ya juu. Sasa jiulize, hivi hawa wanataka chaskula au wanataka biashara?

    Tunapokuwa waangalifu, tusijione kama tunajilinda sana. Tumeshafanya makosa sana awamu ya Benja, na ndo maana unaona mikataba tunarekebisha.
     
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