MARKET DATA REVIEW : Alternative channels of financing real estate projects

There are two major encouraging statements that came to our attention recently, these statements came from the government: (i) the possibility of repossession of previously privatised state owned entities that were sold to some investors; and (ii) state owned entities, agencies and parastatals are now required to refocus on becoming more efficient and raise their financial needs from the local financial market.

>Privatisation is the process of transferring ownership of a business, enterprise, agency, public service, or public property from the public sector (a government) to the private sector.

>Entering into real estate transactions in today’s litigious society without taking advantage of an arbitration clause is like driving a car without a seat belt: it is a dangerous and unnecessary risk. However, most people just cruise through this “Arbitration Clause” part of the contract without really understanding what is happening “there”.

Demutualisation of stock exchanges has captured media headlines in recent years — it seems like most exchanges are doing it (except for Africa, for obvious reasons). A number of exchanges across the globe have demutualised since this idea came into the public attention, especially after the first incident of demutualisation by the Stockholm Stock Exchange in 1993.

It is fairly expected that, we as humans in our own ways should always be in the process of creating a good society — a society where citizens are largely satisfied, one where people are happy and thrive in their undertaking. A good society is one that values decency, responsibility, justice, tolerance and where natural human rights are observed.

Recently, the Dar es Salaam Stock Exchange (DSE) has been taking specific measures to address some of our specific local needs and challenges – it doesn’t serve better for any of us that after more than 15 years since the operationalization of the stock exchange in our economy, it remains just a superfluous high level concept, neither has it been understood nor efficiently used by our local communities to address some of their long-term capital needs on one side or investment...

>This week there is an annual Association of  Stock Exchanges in Africa conference hosted by the Nairobi Securities Exchange.

>Last week I talked of the need to consider local content, participation and economic empowerment in policies and laws we make, especially those involving key sectors of the economy or whenever we execute key policies that impact economic and social aspects of our people.

Since the enactment of the Capital Markets and Securities (CMS) Act, Cap. 79 of 1994 and the establishment of the Capital Markets and Securities Authority (CMSA) in 1996, there has been several developments in the Capital markets in Tanzania.