DSE launches 'Enterprise Growth Market' campaign

The Dar es Salaam Stock Exchange (DSE) has launched a massive nine month media campaign aimed at educating investors and issuers on the newly established Enterprise Growth Market (EGM) this following the low show of interest towards the venture.

Speaking to reporters in Dar es Salaam yesterday the DSE Chief Executive Officer Moremi Marwa, said the move is meant to facilitate long term capital rising for small and medium enterprises (SMEs) in the country.

"We understand that SMEs are the key vehicles for wealth creation…they make a substantial contribution towards real economic growth, " he said noting that if nurtured, SMEs have impact the country positively.

“SMEs are very inclusive and have a far reaching multiplier effect...they touch most of the community,’ the CEO added.
With that said, he acknowledged that a major constraint limiting the sector’s potential is access to finance.

“…this new initiative is meant to provide capital financing solutions to them...” he said explaining that traditionally, SMEs depend on commercial banks, microfinance institutions and government or donors for funding.

"These funding sources provide mostly short term financing but in most cases they are not sustainable," he said and offered the SMEs reassurance that with the new DSE initiative they now have an alternative access to funding and one that is sustainable and long term.

EGM on the DSE market segment will serve entrepreneurs and managers of enterprises by facilitating the availability of capital to start or expand their projects.

However, since its introduction, the EGM initiative has not been well received with few companies, mostly from the telecommunication and banking service, have shown interest. As such, experts believe that the media campaign would enable the stock trader to add new players while retaining the old ones as well as introduce new investment opportunities into the market.

Source Guardian