ACA 3,980     CRDB 150     DCB 340     DSE 1,700     EABL 4,180     JHL 10,200     KA 255     KCB 860     MBP 590     MCB 500     MKCB 800     MUCOBA 400     NICO 300     NMB 2,760     NMG 1,580     PAL 470     SWALA 490     SWIS 2,660     TBL 13,400     TCC 17,000     TCCL 700     TICL 450     TOL 660     TPCC 2,060     TTP 120     USL 15     VODA 800     YETU 600     

DSE's CEO speech at Top 100 Mid- sized companies survey, November 2013

Hon. Dr. Abdallah Kigoda (Minister of Industry & Trade),

Mwananchi Communication Ltd CEO, Mr. Tido Muhando,

 

KPMG Tanzania CEO, Mr. Salim Bashir,

 

Corporate Leaders & Entrepreneurs,

 

Invited Guests,

 

Ladies & Gentlemen,

 

Let me begin by expressing my sincere appreciation for the invitation to attend and speak into this important occasion for the business community in our Country.

 

In the same vein, let me thank Mwananchi Communications Ltd and KPMG Tanzania, for their foresight and initiative, in introducing and running the Top - 100 Mid – Sized Companies Survey and for organizing this annual event, now in its third year. There is no doubt that through this survey, companies which once thought by themselves and by others as small and irrelevant have moved into greater achievement and recognition.

 

Now, after the identifications and recognitions are done -- follows what -- a lot of things that may follow subsequent to this event – let mention a few: increased visibility, better profiling & credentilization, increased confidence in going to market, BUT also the need to grow and develop in a sustainable manner into greater heights of the corporate world. Now, a lot needs to be taken care of before a Mid-Sized company can become a corporate giant – I will mention a few:

 

i) The courage to pursue higher objectives;

 

ii) Endurance to meet and in larger part exceed expectations of key stakeholders (i.e. customers, suppliers, employees, financiers, shareholders, the government, etc);

 

iii) Good corporate governance;

 

iv) Enhanced corporate social responsibilities; and

 

v) Sourcing finances that are sustainable for the growth and development of the company.

 

 

We, at the Dar es Salaam Stock Exchange, this year we opted to become a Strategic Partner in this initiative. We see our role in the economy embedded to this initiative and process. Our role as the Stock Exchange is to address the capital raising challenge that often is a key hindrance to business growth and sustainable development.

On a top level note let me explore a bit in detail what can a Stock Exchange do to the identified Top 100 Mid-Sized companies in their ambitions to turn their businesses into corporate giants, especially in addressing the capital equation; We at the DSE:

(i) Provides a platform for raising long-term and sustainable capital that is necessary for the growth of business enterprises;

(ii) Through the Exchange, availability of future funds is enhanced, as a rights issue may be used to secure further equity if the need arises;

(iii) We make it easier & less costly to obtain other forms of finance i.e. bank loans, corporate bonds, etc due to meeting listing requirements

(iv) We provide better corporate governance practices which in turn brings about good management standards and efficiencies in the way companies operates;

(v) We provide a platform for good succession plan that ensures that the company can sustain beyond its first generation;

(vi) We provide an efficient and effective price discovery mechanism and better valuations – which in turn becomes a favored exit mechanism for anchor shareholders, business promoters and other financiers such as venture capitalists and private equity funds;

(vii) We provide good profiling and visibility for listed companies;

(viii) BUT -- there are also fiscal (tax) incentives that are availed to both issuers and investors through the Exchange

 

Ladies and gentlemen, at the Dar es Salaam Stock Exchange, we have now introduced the Enterprise Growth Market to compliment the Main Investment Market (that has been available for the past 15 years); the EGM segment caters for mid-sized companies and also new ventures (or start-ups) in their efforts to find long-term financing sources (both equities and debt).

I know for a fact that most of the companies that tonight are honored as Top 100 Mid-Sized Companies in our economy do qualify to raise capital and be listed in the Exchange – it is a question of choice for them to either use the Exchange route or other routes. Experience shows that the market has enough liquidity to finance such businesses.

Let me conclude by reiterating DSE’s willingness to partner with the Top 100 Survey in order to not only identify and recognize BUT to sustainably engage and also provide these companies the necessary support in the process of expanding further and taking their enterprises to greater heights.

Thank you Ladies and Gentlemen.