News Column

Privatised Firms With Govt Shares to List On Dar Bourse

June 18, 2014

PLANS are underway for privatized companies with government shares to list on the Dar es Salaam Stock Exchange with a view to selling shares to the public in order to entrench people's ownership of the firms.

Finance and Economic Affairs Deputy Minister Mwigulu Nchemba said he had instructed the Treasury Registrar to consult with the Ministry of Energy and Minerals and the Ministry of Communication, Science and Technology to prepare regulations and procedures that would enable those companies to list on the stock market.

He was responding to a supplementary question from Peter Serukamba (Kigoma Urban - CCM) who wanted to know when the government would sell its shares in Airtel and National Microfinance Bank (NMB) and other privatised entities to the wananchi.

The government has 31.8 per cent shares in NMB, one of the two largest banks in Tanzania. Mr Nchemba said the Treasury Registrar, in consultation with the two ministries, would come up with regulations and procedures to facilitate the companies list on the DSE.

The deputy minister said there were indications of foul play in some of the privatized companies for not listing on the stock exchange despite various incentives in place to attract them to do so."

There is an indication that something is being hidden with regard to the operations of the companies," he said.

Earlier, Mr Nchemba had said that private companies operating in the country were not obliged to list on the stock exchange, saying listing was an individual firm's decision.

He was responding to Mr Richard Ndassa (Sumve - CCM), who wanted to know why large private companies in telecommunications, mining, banks and beverage industries had not listed on the Dar es Salaam Stock Exchange.

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Source: AllAfrica

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