DSE, AfriCapital partner to boost investment flows

THE Dar es Salaam Stock Exchange (DSE) and AfriCapital Holdings have signed a Memorandum of Understanding (MoU) aimed at boosting country’s investment ecosystem.

The partnership is primarily focused on increasing the number of investment-ready companies and bridging the gap between private and public capital in the country to boost overall market capitalisation.

DSE Chief Executive Officer Mr Peter Nalitolela said during the signing ceremony over the weekend that the collaboration will play a key role in preparing local companies for listing through initial public Offerings (IPOs) hence attracting more investors to the exchange.

“These strategic initiatives are crucial as we pursue innovation in capital markets, expanding our ecosystem to include broader segments of society especially youths, women and SMEs,” he said.

The agreement seeks to formulate a seamless transition where companies can grow within capital frameworks before entering the public market. Africapital’s Founder and CEO Mr Burak Büyüksarag said the partnership will focus on identifying and supporting promising local companies with the potential to list on the stock exchange in the near future.

“Beyond increasing IPO activity, our goal is to raise awareness of country’s capital markets among foreign and institutional investors, encouraging them to invest in homegrown businesses,” he said.

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He added that the company already has a strong pipeline of projects, with at least two or three companies showing potential to list within the next three to four years.

“Ultimately, this initiative aims to attract substantial foreign capital through the stock market not just through traditional foreign direct investment (FDI),” he added.

He further underlined the desire to promote country’s capital market on a global stage, since the international investors are largely unaware. Moreover, the MoU sets a strong foundation for cooperation across multiple areas, including facilitating crossborder investments, enhancing Tanzania’s appeal to global investors and supporting the international expansion of country’s companies.

Other key areas of collaboration include the promotion of both foreign and domestic direct investment, investor education, IPO readiness, capacity building and skills exchange, all aimed at building a steady pipeline of qualified companies for listing.

Currently, the DSE has 28 listed companies, where 22 are local and six foreign, with a combined market capitalisation of 20.9tri/-. In addition, the number of investors on the market has grown to 673,000, with about 87,000 actively using ‘Hisa Kiganjani’- a digital trading platforms.