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Tanzania: East Africa Hopes to Have Regional Stock Exchange in a Year – Experts |
| Source: |
allAfrica.com |
| Source Date: |
Tuesday, July 09, 2013 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Tanzania |
| Created: |
Jul 09, 2013 |
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The regional stock exchange would involve the integration of capital markets of four Eastern African countries, including Kenya, Uganda, Tanzania, Rwanda. Burundi, currently does not have a stock market.
Kitariko said while it has taken a long time to integrate the stock exchanges, given that the EAC Common Market Protocol was signed in 2007, as long as countries have the political will, he was optimistic it would happen within the envisaged period. He added that the integration of the stock exchange will create a much bigger market for the region, and a larger pool of capital for investment.
The combined capitalization of the four Eastern African stock exchanges is equal to an average US$ 31 billion, more attractive to investors than that of individual national exchanges.
Dar es Salaam Stock Exchange (DSE) Chief Executive Director, Mr Gabriel Kitua, said the Dar bourse was ready for the regional exchange as it would be a magnet for investments into the region, especially for Uganda and Tanzania.
"The DSE and USE have long been dogged by lack of liquidity and outside investor interest as there are simply too few institutions and individuals who wish to invest in East Africa, but the regional market may change things," said Mr. Kitua.
Kitua said the two countries are currently designing an East African Depository Receipt that will allow direct trading of shares and make it easy for investors to move securities from the exchange where they were originally listed, deposit them with a custodian who re-issues them in the new market in the form of depository receipts, which will act like shares.
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Tanzania: East Africa Hopes to Have Regional Stock Exchange in a Year – Experts Tanzania - Kampala — East Africa's dream of a regional stock exchange that merges into one the stock markets of the five East Africa Community member states is likely to take off in a year or two key players in the region have said Definitely we want to have one stock exchange Technically I think we are almost there Maybe it will happen in about a year or two said Kenneth Kitariko Chief Executive Officer of African Alliance Uganda's leading brokerage firm Mr Kitariko who is also a member of the Governing Council of the Uganda Securities Exchange was speaking to African journalists at an event organized by the Thomson Reuters Foundation in Kampala last week
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