Moremi Marwa on how the DSE performed amid COVID-19 & elections

The Dar es Salaam Stock Exchange (DSE) in Tanzania has continued to perform well despite the challenges posed by the COVID-19 pandemic and the recent general elections. In a recent interview with Moremi Marwa, the Chief Executive Officer of the DSE, it was revealed that the equities market turnover had tripled in the third quarter compared to the impact felt in the second quarter due to the pandemic. Marwa emphasized that the elections had minimal impact on the market, showcasing the stability and resilience of investors in Tanzania. He stated that traditionally, during election years in Tanzania, there is little disruption to economic activities, and this year was no exception. Marwa highlighted that the government's successful issuance of government securities, which have been oversubscribed, has boosted investor confidence in the market. The DSE has seen a significant increase in liquidity on both the fixed income and equity segments, with domestic investors playing a crucial role in driving market activity. Key sectors attracting investor attention include banking, manufacturing, and telecommunications. Companies like Tanzania Breweries Limited and Twiga Cement have seen increased trading activities, indicating investor preference for stable and profitable entities. The DSE is also working towards promoting investment in the agricultural sector through the capital markets, aiming to provide alternative funding sources for agricultural projects. Marwa mentioned the DSE's efforts to educate and encourage policymakers and private sector players to consider raising capital from the capital market for agricultural investments. Additionally, the DSE has introduced initiatives like the Enterprise Growth Market and the DSE Acceleration Program to support SMEs and startups in accessing funding through the stock market. Despite the challenges posed by high-interest rates from commercial banks, the DSE remains committed to providing avenues for businesses to raise capital at competitive rates. Marwa also highlighted the growth in domestic market capitalization, which has seen a significant increase throughout the year, reflecting the market's resilience in the face of the pandemic and external factors. Overall, Marwa expressed optimism about the DSE's performance and the future outlook, noting that the market has fared well in the midst of global uncertainties and local challenges.