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Tanzania to let citizens invest in East Africa’s stock markets

Discussion in 'International Forum' started by Smatta, Feb 10, 2010.

  1. Smatta

    Smatta JF-Expert Member

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    The Tanzania government is set to remove restrictions on movement of capital across its national borders freeing the hands of its citizens looking for higher returns on their investments to put their money in foreign markets.

    Enjoyment of this primed fruit of integration starts in January next year when the country's stringent exchange control rules come to a close allowing Tanzanians to buy equity in listed companies in other EAC member states.

    The move marks a significant step in the 12 year integration project whose progression continues to be shackled by remnants of Tanzania's past socialist policies and a growing wave of nationalism that has sustained the fear of swamping by foreigners in a free market economy.

    Two years ago, Tanzania used these restrictions to bar its citizens from buying shares in East Africa's biggest share sale - Safaricom - blocking attempts by the Kenya government to roll out a region wide initial public share offering (IPO).

    Safaricom – the region's most profitable company – had allocated 65 per cent of the shares issued under its highly publicised IPO to local (EAC) subscribers but got no takers from Tanzania.

    A few months later, the country's capital markets regulator also blocked East Africans from participating in the public share sale involving the National Micro-finance Bank of Tanzania.

    Analysts said removal of the restrictions is the clearest signal yet that Tanzania is slowly stepping back from its protectionist policies in favour of a free market offering hope that the country will also let go of its nationalistic policies on land ownership and movement of labour.

    The clause indicates that East Africa's biggest nation by size and population is set to begin the task of phasing out its exchange controls restriction in December this year ushering in a new era of doing business in the region.

    Tanzania's tight grip on its capital markets bars citizens from investing outside their national borders, a restriction that has diminished the benefits that accrue to its citizens from the regional integration project.

    Tanzania's capital markets regulations not only prohibit citizens from participating in foreign IPOs but also bar its companies and citizens from buying or selling of shares in foreign markets.

    The decision by Tanzania to initially ring-fence her capital markets during the initial phase of the implementation of the common market protocol in July has raised eyebrows among its partners.
    Free movement of capital and other factors of production are the key pillars of a common market that the region evolves into from July this year.

    Appetite for investment cash is expected to grow phenomenally as companies seek to expand production to meet rising demand from an integrated regional market. "It will not be possible initially to issue instruments that target EAC as a single region until all these restrictions are removed," said Jimnah Mbaru, the chairman of Dyer and Blair Investment Bank and former Nairobi stock exchange.

    He however remained positive about the integration project saying Kenyan companies that move into Tanzania will be able to raise money from banks in case they choose not to come back home – the region's deepest capital market -- to float security and debt instruments."

    Kenya has the most advanced capital market in the region with Uganda and Rwanda as the only countries with fully open capital markets that allow for free movement of capital.

    The Uganda Stock Exchange is the smallest in the region with only 11 listed firms compared to Kenya's NSE which has 55 and Tanzania with 15 listed firms.

    Some Kenyan companies like Kenya Airways, East Africa Breweries, Kenya Commercial Bank and Jubilee Holdings are cross-listed in the three markets to sidestep hurdles in movement of capital.

    We are waiting for the movement of labor bit, you can postpone and cry all you want, but some things you just cant evade. One day soon, pen and paper will meet and E Africans will be crossing each others birders with minimal restrictions. watch this space.

    http://www.businessdailyafrica.com/-/539552/851466/-/item/1/-/md64kjz/-/index.html
     
  2. Prodigal Son

    Prodigal Son JF-Expert Member

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    Smatta
    thanks for the post, I think it will be good if you indicate the source of the article or acknowledge.

     
  3. Smatta

    Smatta JF-Expert Member

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    its a businessdaily article, The link is down there.
     
  4. Prodigal Son

    Prodigal Son JF-Expert Member

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    thanks brother
     
  5. K

    Koba JF-Expert Member

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    good news indeed!
     
  6. Ben Saanane

    Ben Saanane Verified User

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    what i knopw for sure..our land will never be taken for granted.Even if they allow land issues in EAC treaty i will bring bk TZ frm the hostages even at the cost of guerilla movement.make no mistake about it,time will tell.

    Economic cooperation is not an issue but it should be done with mutual interest at stake
     
  7. Smatta

    Smatta JF-Expert Member

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    talk is cheap man, talk is cheap. Do you think the integration will come to pass without your land being in the equation? seriously, do you think that that land will forever remain virgin? Lets wait and see.
     
  8. Ben Saanane

    Ben Saanane Verified User

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    That's your perception.we differ by far..i stand to be corrected though!
     
  9. m

    moyo JF-Expert Member

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    It is sad how our brothers and sisters in TZ are held in perpetual poverty by thier govt's outdated policies which limit investment opportunities! it's a positive move though .The other good news is that all their mobile service providers in will be forced to list on the stock market,should that happen we will flock in dar to own all those companies by buying any available shares the way we did with safaricom and i believe our bongo bros and sis will also take this opportunity to follow our footsteps,so that they will stop wailing as usual oh kenya this,ooh kenya that.
    East Africa Community was created for East Africans to grow ecomomically.
     
  10. m

    moyo JF-Expert Member

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    This is the most primitive and backward post i have ever read!!still talking of guerilla movement!!?i pity you.Land is a major factor in production,Tz has a land mass equal to Kenya and Uganda put together sadly it is under utilised.You will be forced to change the land policies to suit the objectives of EAC ,if Rwanda abandoned French in favor of english and swahili so should Tz do the same on land policy.
    I pity you but i will pray for you also,the time for fighting physical wars is over,let us fight the economic wars.We both have common enemies,povety,illitracy and disease.Let me educate you kidogo,when you will see Kenyans or Ugandans in your country remember we will be coming to build Tanzania and E.Africa at large.We will be bringing in much needed Capital ,Skills and experience in the economy and tanzania willl grow.Keep in mind,SADC,EAC and COMESA,will soon sign a custom union.We should be proud as East Africans that we are setting the pace for other African countries,we are achieving what other regions can get only in thier dreams!,no wonder Ethiopia, Southern Sudan and DRC have expessed thier desire to join us in future.WAKE UP BROTHER!!!!!
    Stop your hatred and sit down and plan how you are going to benefit personally from the EAC,for us we did it 10yrs ago.We stand to benefit if united or we perish separatetly.
     
  11. G

    Gangi Longa Senior Member

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    who told you you gonna buy our shares? are you allowed? have we asked for your money in exhange of our shares? for your infomation the law does not permit non Tanzania to buy shares at DSE!
     
  12. K

    Koba JF-Expert Member

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    .....our shares? unachekesha sana wewe.
     
  13. G

    Gangi Longa Senior Member

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    If the law says only Tanzanians can acquire those shares, who are you laughing at ? Keep dreaming dude but otherwise your not a Tanzanian, you should know at the moment neither Kenyan nor Ugandan can buy those shares if floated at the DSE! End of the story
     
  14. eliakeem

    eliakeem JF-Expert Member

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    There is nothing known as removal of restrictions on movement of capital across the national borders. This is just a wishiful thinking of our neighbors. That is why the writer of the article (Omondi) has not mensioned where he got that information. If you need more facts on the matters, check with the relevant authorities, rather than relying on the articles which has no source to counter check the truth.

    Lastly, asiye soma magazeti ni mjinga, lakini anayeamini kila kitu kinachoandikwa kwenye magazeti ni mjinga zaidi.

    I remain,
    Eliakeem.
     
  15. Smatta

    Smatta JF-Expert Member

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    If you cant open your eyes and see what is before you, then there is no more help I can give you except such articles, its sad that you are still in denial.
     
  16. The Quonquerer

    The Quonquerer JF-Expert Member

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    Guerilla war is a must! I will be joining Ben, my comrade in arms! Hiyo ni kwa watu wanaotaka kututumia kama ngazi sisi. Hatuwezi ruhusu mafisadi na watu wa nje tena nao kutuonea kiasi hicho! Tunachohitaji ni win win cooperation. Hio mitaji mnayo au ni kubwabwaja! Kama mnapitia TIC na kufuata utaratibu hiyo poa tu! na nani kawazuia? Si kuleta majembe ya mkono, halafu ajira ni kwa watanzania tu!
     
  17. eliakeem

    eliakeem JF-Expert Member

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    Tehe, tehe, tehe, I'm laughing!!! Smatta, so for you the article is enough to prove beyond the reasonable doubt or at a balance of probability about the capital movement. Pole sana. I know Omondi (may be is you) , is always obsessed with wishful thinking and feeling and talking the serious things from the air, no tangible cite of authority. If I ask Omondi what is the source of your article, he'll give me blah, blah.
    You know what, a serious issues like this, after I have read in the paper, (keen people) always follow the source for more clarification. Not always we are content with what the news papers report, sometimes we need to interact with the source pointed out by the reporter.

    Narudia tena.
    Asiye soma magazeti ni mjinga, lakini anayeamini kila kitu kinachoandikwa kwenye magazeti ni mjinga zaidi.

    I remain.
    Eliakeem.
     
  18. Smatta

    Smatta JF-Expert Member

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    'Sup Kbwoya, where you been homes? About that guerilla war stuff, what i'll tell you is that violence begets more violence, there are a lot of issues at stake in this community, we all have to make sacrifices (all of us, all the countries in this federation), Rwanda are leaving French for English and swahili, Kenya are for the monetary union, Tz must also budge on the movement of labour and land (not a must). Fact of the matter is this, its above you guys, what is decided and supported by your leaders is that eventually, all the factors of production in East Africa will be shared between the member countries...including land and labor. Guess its about time you start accustoming yourselves with these facts, because it doesn't matter how long its going to take but it will come to be enforced.
     
  19. Ben Saanane

    Ben Saanane Verified User

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    Let me pardon your ignorance my brother at least for now!!!!!!

    I really doubt if you know what you are writing here.Are you seriously suggesting that we should sacrifice our land in favor of those who abandoned french and adopting swahili? Well,let me educate you on this,Rwanda adopted English and swahili because:

    Firstly,.Rwanda had a diplolomatic war with their former colonial masters,france

    Secondly, Rwanda just like kenya needs Tanzania's land deadly because their population is booming (but atleast Rwandeese case we can understand coz atleast they did not allow some few corrupt leaders and white setllers to own big land like you kenyans while majority are left landless) so they had to learn swahili as one of the condition for them to join EAC.So it was up to them..nobody forced them to accept those conditions.

    Also,it's a pity for some body like you who claim to be educated to compare cultural sacrifice with economic sacrifice.are you seriously suggesting that we should sacrifice our land in favor of EAC just because one member state sacrificed a foreign or their former colonial language and adopted African language swahili?

    Also,bear in mind that i'm not opposing economic cooperation betwwen EAC member satate.Economic cooperation is good but if it is sincerelly conducted under mutual interest.also it can be succesfully even without including land issue unless we are going to cooperate merely basing on land issues!!

    Also can you point out the sacrifice made by Kenya,rwanda,Burundi and Ugandans?

    Also,We cannot bend too low to allow you to exploit our vital interests just because Kenyans allowed some few thugs in the gvnmt to own big plots and left majority poor kenyans landless including you Smattaa,Moyo,Mkenya,nomasana,mnairobi and other poor folks landless.

    Afterall you guys are not goin to benefit from EAC insteady some of your corrupt leaders and few capitalist asins in your country are the ones who are going to benefit..here i stand to be corrected though!

    Also you are talking about aspirations of DRC ,Sudan and Ethiopia in joining EAC..are you suggesting that we should establish a community just to accomodate political and economical handicaps of our neighbours.Are we just going to forge economic alliance in a big population with poor purchasing power and stand proud of it? I really doubt your economic literacy,pardon my manner for telling the truth.

    About fighting phisical war it's not primitive idea,it depends if it's worth fighting.And also it depends on who are you fighting with,so on this case phisical war it's necessary we are fighting with uncivilized people.

    I can see you highest degree of uncivilization basing on what you comment here,what you guys talk abt Tanzanians and on how you percieve others!

    I still insist i will do whatever i can do to ensure that our vital interests are not going to be taken for granted,i will make sure that the spirit and respect of real Tanzanian is going to be restored,even if our leaders are going to make mistake in taking desicion.We are not citizens of banana republic.make no mistake about that!



    As for Tanzanians now:

    Let's work hard and seize all opportunities available in the common markets.lets work hard brothers and prove to them that we are not prone to their selfish exploitation.Show them jeuri ya Mtanzania.we have all potentials to Emerge as giant nation in Africa.we have all what it takes to buid a wonderful nation on this Planet.

    Mungu Ibariki Tanzania
     
  20. S

    SpinDoctor Member

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    Eti "inherently lazy and uneducated"! Kwahiyo Wakenya wamesoma sana...hahahah.....Kubali tu kuwa kutokana na kuwa ardhi yote ya rutuba Kenya (almost 95%) imechukuliwa na inamilikiwa na watu wachache- the likes of Mungikis...na ndugu zao; ndio maana sasa hivi mnaitolea macho ardhi ya Tanzania. Na ndugu yangu Smatta ana ndoto zile za fisi kumnyemelea binadamu akitarajia kuwa kuna siku mkono utadondoka!! Keep dreaming!
     
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