Sanctus Mtsimbe
R I P
- Jul 14, 2008
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PRESS RELEASE
DSE PUBLIC AWARENESS CAMPAIGN FOR THE ENTERPRISE GROWTH MARKET
DSEs Enterprise Growth Market (EGM) a vehicle to Wealth Creation
The Dar es Salaam Stock Exchange (DSE) would like to inform the general public that it has established a new segment at the DSE. This new segment, namely the Enterprise Growth Market is meant to facilitate long term capital raising for Small and Medium Enterprises (SMEs) in the Country. This program is schedule to run for a period of nine months and will involve the use of various media outlets with the intent to reach into the wider audience for both issuers and investors.
DSE understands that SMEs are considered among the key vehicles for wealth creation and, therefore, have the potential to make substantial contribution towards real economic growth, depending on their growth orientation. The DSEs decision to embark on this major campaign hinges on the DSEs profound role in providing the required long-term financing to the identified feasible (with great potential for growth) projects.
DSE also understand that well nurtured SMEs have a positive impact on the countrys economic development initiatives since their activities are both inclusive and have a wider outreach in creating the multiplier effect in the economy. However, one of the major constraints facing SMEs is access to finance. Therefore, an initiative to provide capital financing solution to SMEs is of utmost importance.
As you are aware, SMEs, due to their nature have unique financial needs. However, so far efforts to provide access to finance by SMEs have focused mainly on commercial banks, microfinance institutions and government/donor funded programs. These funding sources provides mostly short term financing and, in some cases, have not been sustainable. To that effect, SMEs have not been able to obtain long-term funding for growth. There is, therefore, a need to identify additional sources of funds that will provide long term financing.
As one of the key stakeholders in the implementation of the government policy on SMEs, the DSE has worked with other stakeholders to put in place institutional framework in order to address the constraint to long-term financing. Introduction of the Enterprise Growth Market (EGM) on the DSE market segment will serve entrepreneurs and managers of enterprises by facilitating the availability of capital to start or expand their projects.
With is campaign, the DSE will inform entrepreneurs on this window of opportunity and therefore through this, the DSE will be able to have a closer working relationship with the widespread SMEs in the country and can easily share with these entities about the financing opportunity available at the DSES Enterprise Growth Market Segment. Through this campaign, existing and potential investors will also be informed on the existence of this new investment opportunity.
ISSUED BY DSE MANAGEMENT
NB: Genuine official answers for genuine questions will be answered by DSE after forwarding your queries.