Capital market investment value increases by 8pc

GOVERNMENT’s efforts to attract more investments have continued to bear fruits, with increasing of investment value in the capital market by 8.1 per cent in the past year.

Capital Market and Securities Authority (CMSA) revealed on Saturday that investment value has jumped to 34tri/- by December last year up from 31.4tri/- recorded by December 2021.

“An enabling environment put by the Sixth-Phase Government under the leadership of President Dr Samia Suluhu Hassan has brought positive results in the development of financial sector, especially in the capital market,” CMSA Chief Executive Officer Nicodemus Mkama stated.

Mr Mkama cited the government’s decision to scrap withholding tax on corporate bonds as one of the measures that created a good investment climate.

He made the revelations in Dar es Salaam when officiated the listing on the Dar es Salaam Stock Exchange (DSE) the Fursa Sukuk Bond of the KCB Bank.

Mr Mkama noted that out of the total investment value, 17.1tri/- has come from the corporate bonds.

Therefore, the Fursa Sukuk Bond, worth 165.8bn/-, has therefore come to further swell the investment value to a total of 34.11tri/.

Speaking about the KCB Fursa Sukuk bond, he said the window for Initial public offerings (IPOs) was opened on November 9 and closed on December 5 last year, during which a total of 11bn/- has been obtained, thus surpassing a target  of collecting 10 bn/-.

The listing of the KCB Sukuk bond will boost financing of the development projects in the country.

“The money obtained from the sale of the Sukuk bond would be invested in the projects that meet criteria under the Shariah through the KCB Sahl Banking window,” he stated.

He said that currently there are over 20 countries in Europe, Asia, and Africa that have provided bonds according to Shariah.

On his part, KCB’s Head of Sahl Banking, Mr Amour Muro, noted that the bond offers new and unique investment opportunities to people in Tanzania and East Africa at large regardless of their religions.

“We are happy that the Sukuk bond has received a bog response from Tanzanians, something which made us surpass a target of collecting 10bn/-,” Mr Muro explained.

He said the listing of the Sukuk bond on the DSE would further provide an opportunity to its investors to sell their shares to other investors.