by Paul Gooday
Municipalities in Dar and Tanga to raise capital through DSE
Dar es Salaam Stock Exchange (DSE) Chief Executive Moremi Marwa has said that the time has come for the municipalities intending to implement various economic projects to raise capital through stock market. The Capital Markets and Securities Authority (CMSA) initiated and supported the move and according to the Chief Executive officer of CMSA, Nasama Massinda, municipal bonds are soon to be a reality in three councils.
The government through the assistance of the World Bank sponsored a two-phase municipal bonds study. The study brought to light the fact that the prevailing government policy would not support efficient issuing of bonds by Local Government Authorities (LGAs) for public subscription.
The first phase of the project strived to establish the feasibility and required policy changes for a thriving municipal bonds market in Tanzania. The second phase was to develop the legal and operational framework for the municipal bond markets in the country.
The former Dar es Salaam City Council director, Bakari Kingobi, was quoted as saying that the municipalities now qualify to issue loans. “Although we have not received the official go ahead from the Bank of Tanzania (BoT), the signs are promising,” he said adding that according to experts, it will help raise resources for development of schools, airports, hospitals and other facilities. Presently, all local authorities depend largely on subventions from the central government and taxation to raise revenue for their expenditures. (The Guardian)
Tanzania urges Chinese to build factories
The Minister for Industry and Trade, Dr Abdallah Kigoda, called on the Chinese business community to build manufacturing industries in the country to mutually benefit both nations. The call was made at the launch of Brands of China African Showcase 2014. The event brought over 100 Chinese companies showcasing products. Products displayed range from machinery, vehicles, home appliances, electronics and solar energy products, consumer goods, building materials, chemical, medical and comprehensive products.
Dr Kigoda said it is time for the Chinese nation to invest in the manufacturing sector which would add value to the country’s profile by reducing the exporting of raw materials which adversely affects the economy. “A great part of our exports are raw materials which after being processed outside, are then sold back to us. We are acting as a global supermarket for goods made from materials produced in our country,” said Dr Kigoda.
He said this has to change because it has adverse impacts on employment and the economy. He suggests that one way of addressing the challenge is through promoting value addition in the country. Dr Kigoda acknowledged the Chinese interest in doing business and investing in the country in different area such as a TSh16 trillion ($10 billion) investment in Bagamoyo Export Processing Zone. He also said the current efforts of laying down infrastructure in Kigoma Region will be an area that Chinese communities can invest in. (The Citizen)