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Dar-es-Salaam, Tanzania, September 6 2012 –
IFC, a member of the World Bank Group, NIC Capital and the Dar-es-Salaam Stock Exchange are hosting a workshop for senior government and financial market officials, investors, and representatives of financial institutions to support the development of local capital markets in Tanzania.
Participants in the workshop, which takes place on September 6, will discuss how to make Tanzania’s capital markets stronger, so more long term funding is available in the country. Issues addressed will include improving the regulatory environment for bond issues in Tanzania, and building skills of actors in the local markets.
Dan Kasirye, IFC Country Manager for Tanzania, said, “Financing Africa’s development requires long term investment – especially in sectors such as infrastructure, industry, housing and microfinance. Local bond markets can be an important source of this funding as they mobilize funds from local and international investors, making them available for economic development. “
Irungu Nyakera, Managing Director NIC Capital, said, “Local Bond Markets are an integral part of local capital markets without which, there would not be liquid cash available for companies to grow, the economy to develop and the government to invest in. Bonds help raise capital to build necessary infrastructure in tune with the overall long-term and short-term objectives of the borrowing corporations or governments.”
Gabriel D Y Kitua, the Chief Executive Officer of the Dar es Salaam Stock Exchange, said, “Dar es Salaam Stock Exchange has come of age and can now facilitate listing of companies of all size, corporate bonds of any class, sovereign and sub sovereign bonds. During the last 12 months, the market capitalization more than doubled while a substantial achievement was recorded in secondary trading of bonds. It is time companies, the Government, Municipal Authorities and investors turn to growth opportunities through the capital markets.”
The workshop was supported by Efficient Securities Markets Institutional Development (ESMID) Africa, a joint program by IFC, World Bank and Swedish International Development Cooperation Agency (SIDA), which develops securities markets to finance priority sectors such as infrastructure, housing and microfinance.
In Africa, the ESMID program works in Kenya, Uganda, Tanzania, Rwanda, and Nigeria, where it helps simplify procedures for issuing and trading bonds; builds capacity of market participants; and spread the concept of securities markets regionally.
ESMID’s work with local authorities has developed a framework for regional bond issues in East Africa and helped shorten the approval process for new bond issues in Tanzania from about 270 days to 60 days. In 2010, ESMID supported the first local currency bond issue by a microfinance institution - PRIDE Tanzania.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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About Dar es Salaam Stock Exchange
DSE is a sole Stock Exchange in Tanzania; The DSE facilitates the Government and companies to raise funds/capital through the issuance of equities and debt securities.
DSE’s mission is to provide a responsive securities exchange that promotes economic empowerment and contributes to the country’s economic development through offering a range of attractive and cost effective products and services. Over 16 years of its operations DSE has managed to mobilize investment of more than USD 1.85 billion for both equity and bond market segments. Currently the DSE Market Capitalization stands at USD 8.16 billion and outstanding bonds are worth USD 1.45 billion. For more information, visit
www.dse.com
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About NIC Capital
NIC Capital is a subsidiary NIC Bank and through partnership with group companies including NIC Bank (Kenya), NIC Bank (Tanzania), NC Bank (Uganda), ICEA Lion Insurance Group, ICEA Lion Asset Management, East Africa Re, among others, NIC Capital has grown tremendously and now has the capacity to successfully execute and place significant amounts of debt, equity and hybrid instruments through our debt and equity execution platforms. For more information, visit
www.nic-capital.com
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