Dar es Salaam Stock Exchange - History, Affairs, Market Listing

Dar es Salaam Stock Exchange – History, Affairs, Market Listing

The Dar es Salaam Stock Exchange (DSE) is situated to the west of Kivukoni, Ohio Street, in South-Eastern Dar es Salaam, Tanzania’s largest city and commercial capital. The stock exchange was founded in September 1996 and began trading operations in April 1998. Dar es Salaam Stock Exchange is a member of the World Federation of Exchanges and the African Stock Exchanges Association. It opens for five days every week, Monday to Friday, with the trading commencing at 10 am and ending at 2.00 pm.

Kenya’s Nairobi Securities Exchange
Kenya’s Nairobi Securities Exchange

The Dar es Salaam Stock Exchange’s activities are supervised and monitored by the Capital Markets and Securities Authority (CMSA). Dar es Salaam Stock Exchange works closely with Kenya’s Nairobi Securities Exchange (NSE) and the Ugandan Uganda Securities Exchange (USE). There are plans to amalgamate all three and form a common bourse for East Africa.

Category Public
Address Golden Jubilee Towers, 14th Floor, Ohio Street, Dar es Salaam
Coordinates  39°17′21.0″E 6°48′48.9″S
Founded September 19 1996
Owner Tanzanian Government (15 per cent) Public (85 per cent)
Honourable mentions Pius A. Maneno – Chairperson
Marwa Morem – CEO
Currency Tanzanian Shilling
Number of listed companies 29
Market cap As of June 2015 Tshs 23,721.49 billion
Indices Dar es Salaam Stock Exchange Index- DSEI

Tanzania Share Index- TSI
Banks, Finance and Investment– BI
Industrial & Allied- IA

Website Stock Exchange Website

History

Incorporation

Dar es Salaam Stock Exchange was founded by the CMSA under the 1994 CMS Act in Tanzania’s Dar es Salaam. It was then incorporated on September 19 1996. Dar es Salaam Stock Exchange was a non-profit-making organization because its incorporation as a private company limited had been by guarantee rather than as a result of possessing share capital in the Companies Ordinate.

Tanzania Breweries Limited (TBL) worker on the bottle assembly line
Tanzania Breweries Limited (TBL) worker on the bottle assembly line

The Dar es Salaam Stock Exchange started its operations on April 15 1998 with the first two companies being TOL Gas Limited and Tanzania Breweries (TBL) respectively, with both of them joining in 1998. The holdup was because of the inevitable background preparations for operations such as the formulation of trading and issuance rules and training of brokers.

Demutualisation

2011 2012 2013 2014 2015 2016 2017 2018 2019
Value of Shares traded (Tshs Billion) 48.25 44.45 73.00 272.45 879.22 733.66 711 208 625
Tanzania Share Index (TSI) 1,051.92 1,206.99 1,840.11 3,561.62 4,684.09 3,706.15 3,919 3,431 3,691
Market Capitalization (Tshs Billion) 5,926 12,773 14,058 18,902 23,721 21,728 23,076 19,677 17,105
Summary of Expense and Income
Income (Tshs Billion) 2.01 1.81 2.09 3.5 4.35 4.79 10.70 6.43 8.39
Deficit /Profit (TShs Million) n/a −338.85 186.35 501.01 1,942.85 2,010.26 5,266 1,757 3,547
Expenses (Tshs Billion) 1.73 2.25 2.04 3.00 3.07 3.10 5.44 4.67 4.84
Summary of Bonds and Securities
Outstanding Listed Govt. Bonds value (Tshs Billion) 1,912.97 2,287.31 2,991.77 3,696.15 4,263.67 4,896.85 8,108 9,436 10,533
Fixed Income Securities Trading (Tshs Billion) 363 248 452 477     –
Treasury Bonds Listed (Tshs Billion) 918 433 977

On June 29 2015, the Dar es Salaam Stock Exchange was re-registered as a public limited company. The name of the company was changed to Dar es Salaam Stock Exchange Public Limited Company. It started selling its shares on May 16 2016 and became the 3rd African exchange to self-list after the Nairobi Securities Exchange in 2014 and the Johannesburg Stock Exchange in 2006. 30 per cent of the company’s stock were offered on the stock exchange and were represented by 15 million ordinary shares.

Corporate Affairs

Business Trends

In June 2011, the Dar es Salaam Stock Exchange began its 5-year plan. Its financial year starts on July 1 and ends on June 30. In 2017, it was adjusted to follow the calendar year.

Ownership

The stock of the company was under the ownership of individuals and corporate entities as of 2019 December. The biggest shareholders are shown in the least below

Ownership of Dar es Salaam Stock Exchange Stock
Rank Owner name Percentage Ownership
5th General Public 58.0
4th National Investments Company Limited Tanzana 5.0
3rd F. Rajabali, Sajjad Rajabali and Mr Aunali 10.0
2nd Briarwood Capital Partners L.P 12.0
1st Tanzanian Government 15.0
TOTAL 100

Services

Dar es Salaam Mobile Trading launched on August 20 2015 to enable people in rural areas where there are no brokers. The platform was named “soko la hisa kiganjani”. A design of Maxcom Africa, it is conformable with all cell phone operators in Tanzania. The objective of this program is to enable more people to take part in the Dar es Salaam Stock Exchange market as presently there are merely 400,000 participants in a nation with 50 million people.  By the end of 2015, more than 1000 entrepreneurs used the program. The popularity of the platform continued to rise and at the termination of 2016 Quarter 1, the number of traders of the mobile platform had risen to 3000.

Mobile tradiing - soko la hisa kiganjani
Mobile tradiing – soko la hisa kiganjani

Dar es Salaam Stock Exchange Listed Companies

There were twenty-seven listed companies, eight government bonds and five corporate bonds as of August 2020. The present market listings in the Dar es Salaam Stock Exchange are summarized in the table below.

Main Exchange

Company Symbol Date listed ISIN Notes
     Gases Limited      TOL 15/04/1998 TZ1996100008 Oxygen production, Welding equipment, Industrial gases
Tanzania Cigarette Company Limited TTC 16/11/2000 TZ1996100032 Tobacco products, Cigarettes
Tanzania Tea Packers TATEPA 17/12/1999 TZ1996100065 Tea Distribution and packing, Coffee distribution and packing
Tanzania Breweries Limited TBL 09/09/1998 TZ1996100016 Beer Distribution, Beer Brewing, Beer Marketing
Tanzania Portland Cement Limited Company TWIGA 29/09/2006 TZ1996100024 Cement
Swissport Tanzania PLC SWISS 26/09/2003 TZ1996100040 Ground Handling, Aviation, Cargo Handling
Tanga Cement Company SIMBA 26/09/2002 TZ1996100057 Cement
National Microfinance Bank NMB 06/11/2008 TZ1996100222 Finance, Banking
KCB group KCB 17/12/2008 KE0000000315 Finance, Banking
Dar es Salaam Community Bank DCB 16/09/2008 TZ1996100214 Finance, Banking
Jubilee Holdings Limited JHL 20/12/2006 KE0000000273 Insurance
East African Breweries Limited EABL 29/06/2005 KE0000000216 Gin, Beer, Spirits
National Media Group NMG 21/02/2011 KE0000000380 Printing, Publishing, Broadcasting, Television
Precision Air Services Limited PAL 21/12/2011 TZ1996101048 Aviation Services
CRDB Bank CRDB 17/06/2009 TZ1996100305 Finance, Banking
Swala Gas and Oil SWAL 11/08/2014 TZ1996101865 Gas and Oil
African Barrick Gold ACA 07/12/2011 GB00B61D2N63 Mining
Dar es Salaam Stock Exchange DSE 12/07/2016 TZ1996102434 Stock Exchange
TCCIA Investment PLC TICL 16/03/2018 Finance, Mutual Fund
Uchumi Supermarkets USL 15/08/2014 KE0000000489 Supermarkets
National Investments Company (Limited) Tanzania NICO 03/06/2018 Finance, Mutual Fund
Vodacom Tanzania VODA 15/08/2017 TZ1996102715 Telecommunication Service Provider
Kenya Airways KA 01/10/2004 KE0000000307 Aviation
  • Kenya Airways and East African Breweries are cross-listed at the Nairobi Securities Exchange and in Uganda’s USE.
  • KCB (Kenya Commercial Bank) Group and Uchumi Supermarkets and Nation Media are cross-listed at the USE , the Rwanda Stock Exchange and Kenya’s NSE.
  • National Investments Company Tanzania was delisted in 2011 and listed again on June 3 2018. It was initially listed on July 15 2008.

EGM – Enterprise Growth Market

Company Symbol Date Listed ISIN Notes
Mwalimu Commercial Bank MCB 27/11/2015 TZ1996102129 Banking
MUCOBA Bank PLC MUCOB 10/09/2016 TZ1996102419 Banking
Mkombozi Commercial Bank MKCB 29/12/2015 TZ1996101972 Banking
Maendeleo Bank MBP 04/11/2013 TZ1996101683 Finance, Banking
Yetu Microfinance PLC YETU 10/03/2016 TZ1996102344 Microfinance
JATU PLC JATU 23/11/2020 Agriculture

For more investment in Tanzania articles click here!