The History of Dar es Salaam Stock Exchange (DSE)

The History of Dar es Salaam Stock Exchange (DSE)

INTRODUCTION

The Dar es Salaam Stock Exchange (DSE) is a state exchange located on Ohio Street, west of Kivukoni, south east of Dar es Salaam, the commercial capital and largest city in Tanzania. DSE was incorporated in September 1996 and started its trading operations in April 1998. Dar es Salaam Stock Exchange market is a member of African Stock Exchanges Association and the World Federation of Exchanges.  The DSE is a public entity with 85 percent shares owned by the public and 15 percent government ownership. The activities of the exchange are monitored and supervised by the Capital Markets and Securities Authority (CMSA) and it operates in close association with the Nairobi Securities Exchange in Kenya and the Uganda Securities Exchange in Uganda.

The historical background of the DSE

The Dar es Salaam Stock Exchange was established by the capital markets and security authority under the Capital Markets and Securities (CMS) act of 1994 in Dar es Salaam, Tanzania. The DSE was incorporated on 19^thSeptember 1996 as a company limited by guarantee without a share capital under the Companies Ordinate; therefore the DSE is a non-profit making body. The exchange became operational in April, 1998 with TOL Gas Limited listing as the first company followed by the Tanzania Breweries Limited (TBL) during the same year. The delay of starting its operations from September 1996 to April 1998 was due to necessary background operational preparations that were inevitable such as training of brokers and formulation of issuance and trading rules. 

The DSE is a non-profit making body created to facilitate the Government implementation of the reforms and in the future to encourage wider share ownership of privatized and all the companies in Tanzania. February 2005, there were seven equity listings on the exchange, up from six equity listings a year earlier. In May 2003, the DSE liberalized its restrictions on cross listings to allow cross listings by companies based in EAC partners Kenya and Uganda. Then, Kenya Airways was the first firm to cross list on the DSE (in December 2004). Tanzania’s tiny bond market is currently dominated by government issues. The Tanzanian government introduced two-year bonds in 1997 and then five- and seven-year bonds in 2002, in moves to lengthen the maturity profile of government debt. Two-year and five-year bonds were first listed on the DSE in 2002, although only Tanzanian residents are eligible to invest in these instruments. In early 2005, other than the Tanzanian government’s bond listings, “corporate” bonds, issued by the East African Development Bank and BIDCO, were listed on the DSE.

On 29 June 2015 the Dar es Salaam Stock Exchange re-registered to become a public limited company. The company changed its name from the Dar es Salaam Stock Exchange Limited to Dar es Salaam Stock Exchange Public Limited Company. The company began selling shares on 16^thMay 2016 and is the third exchange in Africa after Johannesburg Stock Exchange (2006) and Nairobi Securities Exchange (2014) to self list. The company offered 30% of the company’s stock on the stock exchange represented by 15,000,000 ordinary shares.

Ownership of the Dar es Salaam Stock Exchange Public Limited Company

As of December 2019, the company stock was owned by corporate entities and individual and the largest shareholders are listed in the table below.

Rank	Name of Owner	Percentage of Ownership
1	Government of Tanzania	15.0%
2	Briarwood Capital Partners LP	12.0%
3	Mr. Aunali F. Rajabali and Sajjad F. Rajabali	10.0%
4	Nairobi Investments Company Limited Tanzania	5.0%
5	General Public	58%
	TOTAL	100%

 

Market Listing

As of August 2020 there were 27 listed companies in the DSE, five corporate bonds and eight government stocks. The following table present the list of companies listed in DSE as of August 2020.

 

 

Symbol	Company	Date Listed
TOL	Tol Gases Limited	15th April 1998
TBL	Tanzania Breweries Limited	9thSeptember 1998
TATEPA	Tanzania Tea Packers	17thDecember 1999
TCC	Tanzania Cigarette Company Limited	16thNovember 2000
SIMBA	Tanga Cement Company Limited	26thSeptember 2002
SWIS	Swissport Tanzania Plc	26thSeptember 2003
TWIGA	Tanzania Portland Cement Company Limited	29thSeptember 2006
DCB	Dar es Salaam Community Bank	16thSeptember 2008
NMB	National Microfinance Bank	06thNovember 2008
KA	Kenya Airways	01stOctober 2004
EABL	East African Breweries Limited	29th June 2005
JHL	Jubilee Holdings Limited	20thDecember 2006
KCB	KCB Group	17thDecember 2008
CRDB	CRDB Bank	17th June 2009
NMG	Nation Media Group	21stFebruary 2011
ACA	African Barrick Gold	07thDecember 2011
PAL	Precision Air Services Limited	21stDecember 2011
SWALA	Swala Gas and Oil	11thAugust 2014
USL	Uchumi Supermarkets	15thAugust 2014
DSE	Dar es Salaam Stock Exchange	12th July 2016
VODA	Vodacom Tanzania	15thAugust 2017
TICL	TCCIA Investment PLC	16thMarch 2018
NICO	National Investments Company (Limited) Tanzania	03rd June 2018

 

 

 

 

REFERENCES

DSE Handbook (2010): “Dar es Salaam Stock Exchange Annual Report 2010” Eugene, Fama (1989): Notes on efficiency Market

Ziorklui (2001): Capital Market Development and Growth in Sub-Saharan Africa: The Case of Tanzania

Daniel Manase Msaky (2014).Competitive Advantages and Challenges in the Capital Market in Tanzania: the case of Dar es Salaam Stock Exchange (DSE)

Kamazima, B.K, &  Omurwa, J.K. (2018)The Determinants of Emerging Financial Markets Development: A Case Study of the Dar es Salaam Stock Exchange, Tanzania