Why did BoT block Tanzanians from buying safaricom shares? | JamiiForums | The Home of Great Thinkers

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Why did BoT block Tanzanians from buying safaricom shares?

Discussion in 'Jukwaa la Siasa' started by BAK, Jun 10, 2008.

  1. BAK

    BAK JF-Expert Member

    Jun 10, 2008
    Joined: Feb 11, 2007
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    Kenya's Safaricom soars on debut
    BBC News Online

    African mobile phone use has rocketed in recent years
    Shares in mobile phone firm Safaricom soared as much as 60% on their first day of trading after Kenya's biggest ever stock market flotation.

    The stock rose as high as 8 Kenyan shillings ($0.13; £0.06) from a sale price of 5 shillings in trade on the Nairobi Stock Exchange.

    The Kenyan government should raise about $833m from the sale of a 25% stake in the company.

    The sale was the first chance for many Kenyans to own their own shares.

    Foreign investors were required to pay 5.5 shillings, 10% more than the price offered to Kenyans.

    Safaricom's shares ended trading at 7 shillings.

    Investor appetite

    This IPO is the most attractive in our history

    President Mwai Kibaki

    The sale was oversubscribed by more than 500%, a sign that investors have renewed appetite for Kenya's economy after violence in the country following elections earlier this year, analysts said.

    The popularity of the stock offering meant most Kenyans received only 21% of the shares they applied for.

    Michael Joseph, Safaricom's chief executive said: "We went out of our way to create as many shares as we possibly could to let people apply."

    Unlike many Western countries, Kenya's mobile phone market is not saturated - only a third of Kenya's 36 million people own a mobile phone.

    Analysts also said Safaricom's strategy of targeting low-income Kenyans would help boost its customer base.

    President Mwai Kibaki, who launched Safaricom's trading debut said: "This IPO is the most attractive in our history."

    But the share sale caused some controversy.

    Opposition parties had tried to delay the issue because of uncertainty over Safaricom's other shareholders.

    While the government insists it currently owns 60% of Safaricom with the other 40% in the hands of UK giant Vodafone, opposition groups say another firm called Mobitelea also has an interest.

    Registered in Guernsey in the Channel Islands, Mobitelea's owners remain unknown.

    Media reports in Kenya have speculated that Mobitelea owns as much as 10% of Safaricom.

    Safaricom is East Africa's most profitable company, it made profits of $370m last year.

    It employs more than 1,000 people.
  2. G

    Game Theory JF-Expert Member

    Jun 10, 2008
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    Hili suala nilimuuliza Gavana alipokuja UK na akasema kuwa tuan restrictions kuhusu fedha kuvuka mipaka ya Tanzania na tayari bunge lilipelekewa proposal ili kuliondoa hili. I am sure katika kikao cha Bunge knext two weeks hii itakuwa tabled na kupitishwa
  3. C

    CottonEyeJoe JF-Expert Member

    Jun 10, 2008
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    The reason why Tanzanians were blocked is out of sheer stupidity, socialistic mindsets, and a clear lack of foresight from the government. Truth of the matter is that we are still suffering from nyerereism and ujamaa syndrome and thus the reason bado tulivyo, this was a great oppurtunity for the region as a whole and its sheer madness to believe that the government did not foresee this oppurtunity. We got a team of monkeys kwenye hizi instituitions working around the clock to make sure Tanzanians look dumber then we are already percieved to be....
  4. M

    Mwakilishi JF-Expert Member

    Jun 10, 2008
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    Hizi restrictions inaelekea hazi-apply inapofika kwenye "vijisenti" vya mafisadi lakini...
  5. BabaH

    BabaH JF-Expert Member

    Jun 10, 2008
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    Hii ni kawaida kwa nchi ya Tanzania ndugu
    Restriction (Sheria) na mipaka yake hipo kwa ajili ya maskini tu au wale wanaotaka kukukandamiza tu na si vinginevyo kwa Tanzania.
    Hili hata kisura analijua na ndo maana kaamua kuacha kutumia mamlaka ya kikatiba aliyopewa kuwaweka chini ya sheria Mafisadi wenziwe, kwa sababu anajua wazi kuwa sheria ziko kwa ajili ya maskini na sio wao!!