The Citizen<\/a> (Dar\u00a0es\u00a0Salaam)<\/p>\n1 December 2011<\/p>\n
\neditorial<\/p>\n
The advantages of the stock market in an economy like Tanzania are many. It is a cheaper and more sustainable avenue for organisations in both the private and the public sectors to raise funding than it would be through financial institutions.<\/p>\n
Moreover, the bourse provides a platform for people to invest their savings in buying shares. It is an alternative to depositing money in a bank, which provides very low interest rates.When people buy shares of a company at the stock market, they effectively become part owners of the enterprise in question.<\/p>\n
Most profitable areas of the economy like mining, tourism, telecommunications and the gas and oil sectors are owned by foreigners and the Dar es Salaam Stock Market (DSE) is currently the only available avenue for local ownership of the economy.<\/p>\n
We are aware that there are better ways to enable Tanzanians to participate in the economy. Encouraging them to invest directly is another way.However, in areas like the extractive industry and telecommunications, big capital and high-end technology and know-how are needed. One way to solve this problem could be through partnership with foreign investors.<\/p>\n
But so far, the DSE is easily the best route available for pushing up local ownership of the economy.That is why encouraging firms, especially those huge, foreign-owned ones, to invest in the most productive sectors should be the top priority of the government.<\/p>\n
We are also aware that the Parliament has enacted laws to oblige companies in the mining and telecommunications industries to list at the Dar es Salaam bourse.This is a good approach but the focus should be on encouraging voluntary listing. More incentives should be provided for companies that show a willingness to list at the bourse.<\/p>\n
At the same time, awareness campaigns should be carried out to attract as more individual investors as possible.<\/p>\n
AllAfrica – All the Time<\/p>\n
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