Meet deadline of listing on DSE, cellphone firms told
National Economic Empowerment Council executive secretary Beng’i Issa speaks yesterday in Kibaha about mobile phone firms’ floating of 25 per cent of their shares to the public. PHOTO|THE CITIZEN
CORRESPONDENT
What you need to know:
- In June this year, Parliament endorsed the 2016 Finance Act which, among others issues, amended the Electronic and Postal Communications Act, (Cap. 306), to compel mobile phone firms to offload 25 per cent of their shares to Tanzanians via the Dar es Salaam Stock Exchange (DSE).
- The firms were given six months to undertake listing preparations, signaling that initial public offerings (IPOs) could start between December 2016 and January 2017.
Kibaha. The National Economic Empowerment Council (NEEC) called upon phone companies yesterday to abide by the provisions of the Finance Act 2016 and offload 25 per cent of their shares to the public as deadlines for doing so approaches.
In June this year, Parliament endorsed the 2016 Finance Act which, among others issues, amended the Electronic and Postal Communications Act, (Cap. 306), to compel mobile phone firms to offload 25 per cent of their shares to Tanzanians via the Dar es Salaam Stock Exchange (DSE). The firms were given six months to undertake listing preparations, signaling that initial public offerings (IPOs) could start between December 2016 and January 2017.
“With this move, existing mobile phone firms will be duty-bound to list their shares on the stock market in a period of six months from July 1, 2016…..Similarly, companies that will be registered in the country after July 1, 2016 will have to list on the stock market after two years of their operating in the country,” the Finance and Planning minister, Dr Philip Mpango said in Parliament in June. But speaking on sidelines of a course for 49 empowerment coordinators here yesterday, NEEC executive secretary Beng’i Issa said so far, no mobile phone firm has managed to list its shares at the stock market, noting that doing so would be the only way through which over 20 million Tanzanians – who subscribe to the mobile phone networks – can actually become shareholders for the same companies.
“Over 20 million Tanzania for a long time now have been customers of these companies. It’s high time the companies listed their shares at DSE as demanded by the law, to allow Tanzanians to buy shares and become part of the owners of those companies.” Ms Issa is confidence that locals will come out in large numbers to purchase shares in the firms.
She said NEEC will make a close follow-up to ensure compliance with the provisions of the Finance Act of 2016, but did not say what the council will do to companies that will ignore the law.
