Tanzania: Yetu Microfinance Formally Goes Public

Mar 2016
Tanzania, March, 11 2016 - Yetu Microfinance completed official listing process on the Dar es Salaam Stock Exchange (DSE), the first microfinance in the country and East Africa to join the family of other 22 firms quoted on the bourse.

The firm with 14,200 shareholders becomes the 5th company to list on the Enterprise Growth Market (EGM) that became operational in 2013 to increase the DSE's investor base to 464,200 Central Securities Depository (CSD) accounts from 450,000.

Deputy Minister for Finance and Planning, Dr Ashatu Kijaji, said at the launching event in Dar es Salaam that listing of Yetu Microfinance is historical in the country because majority of its shareholders are small scale enterprises and farmers.

"EGM is an important window for the small scale enterprises that aim at raising low cost capital with an intention to grow and expand their business,' she said. Dr Kijaji said the government is ready and would continue to work with the Capital Markets and Security Authority (CMSA) and DSE to address challenges to ensure that more firms, particularly small and medium go public.

The CMSA Chief Executive Officer, Ms Nasama Massinda, said listing of Yetu Microfinance shares create a challenge of meeting investors' expectation including return on the investment and improved services.

"CMSA believe that listing of Yetu Microfinance on DSE will act as the catalyst for shareholders and board of directors of other well running companies to consider issuing securities and listing their firms on the exchange," she said.

She said CMSA is planning to establish a national capital markets master plan that would address the issue of resource mobilisation, thereby disclose the huge capital markets potentials for economic development.

Speaking earlier, the Acting DSE Chief Executive Officer, Ms Mary Mniwasa, requested the government to use the Exchange as the vehicle of any other privatisation that would compliment economic empowerment programme to its people.

She said, for example, of the seven privatised companies, six are among the 15 big taxpayers in the country, an indication of success stories of listing at the DSE.

Yetu Microfinance Managing Director, Mr Altemius Milinga, said 46 per cent of the Yetu Microfinance customers come from the rural areas and the number has increased when the news of going public broke out.

He said Yetu Microfinance sold 6,223,380 shares at the price of 500/- and managed to raise 3.1bn/- collected from 14,273 subscribers. The proceeds from the IPO will be used to broaden shareholding structure and enhance the capital base.

Source : allAfrica

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