TANZANIAN small and medium enterprises (SMEs) now have the means to access the capital market after the Dar es Salaam Stock Exchange (DSE) yesterday launched an initiative dubbed ‘Endeleza’ for building their capacity.
The initiative is aimed at empowering the SMEs to make their businesses have sustainability, good governance and transparency which are among the criteria for accessing the capital market and attracting investors.
The window is aimed at profiling and visibility enhancement for qualifying SMEs with the ultimate objective to provide access to potential private capital from investors and financiers.
Before the launching of the Endeleza, the SMEs that have been admitted for the programme went through experiential learning as well as coaching and mentoring.
Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama, graced the launching of the initiative in Dar es Salaam. Mr Mkama said the initiative was a positive gesture to boosting of Tanzania’s economy through attracting more investors in the capital market sub-sector.
“This initiative would enable increasing listed companies on the DSE, thus attracting more investors and boost the national economy,” Mr Mkama stated. He urged the DSE and stakeholders of the capital market to motivate more companies to participate in the initiative.
“The government through the CMSA will continue creating an enabling environment in the capital market subsector for stimulating economic growth,” Mr Mkama said.
There are eight SMEs admitted to the programme, namely Selcom, Raha Beverages Company, AKM Glitters Company, Victoria Finance Plc, FINCA Microfinance Bank, AML Finance Limited, Techno Image and Reni International Company.
DSE Chief Executive Officer Moremi Marwa said these SMEs are nurtured to enable them to get funds from private investors, angel investors, private equity funds, venture capital funds, crowd-funding platforms, and banks and other financial institutions.
“The ultimate objective is to provide qualifying SMEs with access to potential private capital to enable them grows. “And preparing SMEs to qualify for funds from investors and different types of financiers,” Mr Marwa said.
A representative from Raha Beverages, one of the admitted firms, Mr Adolf Olomi, said they previously wanted their firm to join the DSE but they did not know what procedures to follow. But after a capacity building under the initiative, they started addressing some challenges that hindered them to list the company on the DSE.