Tanzanian bourse opens for business with SA software
THE development of stock exchanges across Africa to meet the growing demand for capital received a boost on Friday when the Dar es Salaam Stock Exchange went live, using a South African software company’s trading and settlement technology.
Securities and Trading Technology (STT) was chosen in April to provide the Tanzanian exchange with solutions to improve its trading ability, as SA’s expertise in running efficient financial markets is increasingly called upon to help other countries in Africa grow their markets.
The plan is to increase the number of securities and bonds traded in Tanzania from the current 25 companies.
The CEO of the Dar es Salaam Stock Exchange, Moremi Marwa, said on Friday the new system would help the exchange achieve “true delivery” and improve risk management for investors.
“This is in line with our strategic intent of introducing new products and increasing accessibility to our system through the use of mobile, internet and SMS trading facilities,” Mr Marwa said.
The focus will now be on enterprises and government long-term fundraising, value and liquidity creation for investors.
STT MD Michelle Janke said the Tanzanian exchange had become her company’s third exchange to go live using its integrated exchange solution.
Furthermore, Tanzania was STT’s first African exchange to go live with its equities platform, as well as its central securities depository system.
An International Monetary Fund report last month found that Tanzania’s economic growth was projected to remain strong at 7% next year and in the medium term.
Inflation is at 6%, gradually converging to the authorities’ 5% mediumterm objective.
However, the country’s external current account deficit remains among the largest in the region, at 14% of gross domestic product this year.
Former JSE director Allan Thomson has been involved in setting up the Bond and Derivatives Exchange of Zambia and the Nairobi Securities Exchange’s derivatives exchange for the East African region, as governments in Africa are increasingly looking to offer more opportunities to investors.
Mr Thomson is working with STT in a consortium to rival SA’s authorised central securities depository, Strate.