Dar Stock Exchange Turns Over U.S. $211 Million

Dar es Salaam — Trading volumes at the Dar es Salaam Stock Exchange (DSE) reached Tsh340 billion (about $211.78 million) a year, thanks to improved efficiency and easier access for investors.
DSE said, three years ago, it had been trading at Tsh50 billion ($31 million) per year. However, introduction of new schemes has simplified trading and sharply increased turnover.
Moremi Marwa, the DSE Chief Executive Officer, told East African Business Week in Dar es Salaam last week, the new initiatives have helped the bourse to grow its businesses.
"Up to end of this year, we expect to earn over Tsh150 billion ($93.43 million)," Moremi said. He said the leading sector is industrial, followed by banking.
Moremi said the DSE is now trading between Tsh40 to Tsh50 billion ($24.92 million to $31.14 million) quarterly which grew from Tsh10 billion ($6.23 million) traded three years ago.
"The development has been attributed by the four major improvements. The shifting from Local to Wide Area Network, to cut settlement cycle, extended trading hours as well as to create awareness to the general public about DSE businesses," he said.
He said the bourse has improved its settlement cycle, that is, delivery versus payment for both equities and bonds.
The improvement means it now only takes three days to make deliveries and payment for shares, unlike the previous five days.
"If you buy CRDB shares (a leading bank) today, you will receive your certificate within three working days. The one that sold you the shares will also receive his cash during that same time," Marwa said as an example.
Similarly, he added deliveries and payment for bonds will now be done in just one working day compared to three days previously.
Security situation has also been improved to reduce payment risks involved during transaction for both equities and bonds.
DSE has shifted from the Local Area Network to Wide Area Network in a move meant to make its services accessible by market brokers in the comfort of their offices wherever they are. "Market brokers can now conduct trading activities right from their offices," he said.