Achievements and challenges as the DSE turns 20

The official number of current listings comprise of 28 equity securities, 5 corporate debt securities (though there have been 15 entities that have issued corporate debt securities and listed in the DSE) and about 140 Government (Treasury) bonds. Excluding cross-listed securities from the London Stock Exchange (LSE) and Nairobi Securities Exchange (NSE), all other securities have been issued and listed in the local currency. DSE’s [sometimes] relatively innovative tendencies have created one of the region’s exchange platforms that is aligned to the best international standards and practices as they related to delivery and settlement (DvP) of cash and securities as required by IOSCO Principles. DSE is using an automated trading systems (ATS) that is linked to the national payments system and central depositories both at the DSE and Bank of Tanzania.

To cement further on the development we pursue, this year, we have been thoroughly evaluated and inspected by the World Federation of Exchange towards becoming a full member to this global organ, if this will crystalize we will be the 8th among 29 stock Exchange in Africa to achieve this milestone; this year also FTSE Russell – one of the leading global providers of stock market indices and associated data service, including markets/countries’ classification, reached out to the DSE, informing us that as part of the FTSE Country Classification Annual Review, the FTSE Russell Country Classification Advisory Committee and the FTSE Russell Policy Advisory Board have approved the addition of Tanzania to the “FTSE Watch List” for possible Classification into Frontier Market Status, from the current status of being Unclassified.

The equity market size as at December 25, 2018 is about Sh20 trillion (of which 50 per cent equivalent to Sh10 trillion emanates from domestic listed companies); while the debt/bonds market size is Sh9.2 trillion - about 98 per cent being government bonds. Average annual liquidity is about Sh500 billion for equity instruments and about Sh600 billion for bonds – (this year - 2018, equity turnover is Sh200 billion and bonds turnover Sh990 billion). Investor base for listed equity instruments is about 550,000 and about 2,000 investors for bonds instruments. Relatively, the stats above could make us feel good – but in a situation where domestic market cap is only 10 per cent of the GDP, where bonds market size is only about nine percent of the GDP, and where local investor base is only one per cent of the population – one should not feel good.

Achievements and challenges as the DSE turns 20

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