MARKET DATA REVIEW : Case for govt role in capital markets development

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.

>This is the third of a series of four articles in which I seek to share my view on the state of Africa’s financial markets -- their roles in propelling socio-economic prosperity, opportunities and challenges that we face as we try to develop our financial markets.

If one takes a good look into our economy, it is relatively easy to notice that there are five main sources from which our finances for investment activities are ultimately derived from.

>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.

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.

For one measure — market capitalisation and stock indices — stock markets across the world have had mixed results for the year just ended, 2015.

>Last week we dwelt on the concept of return and risk on investment in securities (i.e. shares and bonds) listed in the stock market. We learnt that the return on an investment consists of dividend, interest, rent or other income added to the increase in the value of the asset over a set period.

>Back in 2010 two pieces of legislation (Mining Act of 2010 and the Electronic and Postal Communication Act of 2010) were passed by our Parliament and got signed by the president with all the optimism that these laws entailed to fulfill, including some of the dream of local citizens, especially the aspect of the requirement that companies with Special Mining Licences and those operating in the telecommunication sector will be required to offer shares to the public and subsequently list on...

Two weeks ago in my article titled “In the Creation of a Good Society,” in the introductory part of it I summarised some thinking and propositions from various political, economic and moral philosophers and thinkers, from both ends of the spectrum, as they opined what entails a good society, especially as is defined by value that characterises such a society.