1.

Dar es Salaam Stock Exchange was established by the capital markets and security authority
under the Capital Markets and Securities (CMS) Act of 1994 in Dar-es-salaam, Tanzania. The
stock exchange was incorporated on 19 September 1996.The company was incorporated as a
private company limited by guarantee and not having a share capital under the Companies
Ordinate, therefore the DSE is a non-profit making body.

The exchange became operational on 15 April 1998 with TOL Gas Limited listing as the first
company followed by the Tanzania Breweries Limited (TBL) during the same year. The delay
was due to the necessary background operational preparations that were inevitable such as
training of brokers and formulation of issuance and trading rules.

The Dar es Salaam Stock Exchange (DSE) is a stock exchange located on Ohio Street, west of
Kivukoni, south east of Dar es Salaam, the commercial capital and largest city in Tanzania. It
was incorporated in September 1996 and trading started in April 1998. It is a member of the
African Stock Exchanges Association and the World Federation of Exchanges. The exchange is
open five days a week, from Monday through Friday. The trading days are weekly from Monday
to Friday, starting from 10.00 am to 14.00 pm.

The activities of the exchange are monitored and supervised by the Capital Markets and
Securities Authority (CMSA). The DSE operates in close association with the Nairobi Securities
Exchange in Kenya and the Uganda Securities Exchange in Uganda. Plans are underway to
integrate the three to form a single East African bourse.

Incentives to Issuers

i. Reduced corporation tax from 30% to 25% for three successive years subsequent to
listing of a company that have issued at least 25% of its shares to the public.

ii. Tax deductibility of all Initial Public Offering (IPO) costs for the purposes of income tax
determination. All IPO costs are accepted by the Tanzania Revenue Authority (TRA) as
acceptable expenses used in the generation of income and profits, and therefore are taken
into consideration when determining profit for tax purposes.
Incentive to Investors

i. Zero capital gain tax as opposed to 10% for unlisted companies.

ii. Zero stamp duty on transactions executed at the DSE compared to 6% for unlisted
companies.

iii. Withholding tax of 5% on dividend income as opposed to 10% for unlisted companies.

iv. Zero withholding tax on interest income from listed bonds whose maturities are three
years and above.

https://en.m.wikipedia.org/wiki/Dar_es_Salaam_Stock_Exchange

3.

How do I buy and sell stocks? Stocks can be bought and sold in three main ways: being
physically present at the brokerage house, calling or messaging your broker, and using the DSE
mobile app. All brokerage houses charge a certain percentage of commission on each
transaction.

The first company to list at DSE was Tanzania Oxygen Limited (DSE: TOL) in 1998, which was
also the first state-owned company selected for privatization through the capital markets. It was
followed by Tanzania Breweries Limited (DSE: TBL), Tanzania Cigarette Company (DSE:
TCC), Swissport (DSE: SWIS), Tanzania Portland Cement Company (DSE: TPCC), Tanga
Cement Company Limited (DSE: TCCL) and National Microfinance Bank (NMB).

After these first state-driven listings, other private companies decided to list at DSE as a part of
their corporate growth strategy to raise capital. These include TATEPA, CRDB Bank, DCB
Commercial Bank, and Precision Air that listed at the DSE during 1999–2011. In 2013, the DSE
launched a second-tier market, the Enterprise Growth Market (EGM) with lower listing
requirements.

The EGM is designed to attract small and medium companies with high growth potential. So far,
the EGM has attracted five companies, including YETU Microfinance Bank, Mkombozi
Commercial Bank, Maendeleo Commercial Bank, Mwalimu Commercial Bank, and Swala Oil &
Gas.

In 2015, the DSE was demutualized, i.e. it changed its registration status from being limited by
guarantee to being limited by shares. Moremi Marwa, CEO of DSE, explained that the bourse
aims at maximizing the value of investment through the process of demutualization.

The DSE is the third Exchange in Africa to demutualize after the Johannesburg Stock Exchange
(JSE) and the Nairobi Securities Exchange (NSE).

In May 2016, the DSE launched its own IPO of 15 million ordinary shares at TZS 500 per share.
The Tanzanian bourse raised TZS 35.8 billion from more than 3,000 investors, which is
equivalent to 377% in excess of the targeted capital. Following the oversubscribed IPO, the
bourse exercised the greenshoe option of 35% to take up an additional TZS 2.6 billion. After
exercising the option, the total capital raised from the DSE IPO is TZS 10.1 billion.

In July 2016, following the successful DSE IPO, the Tanzanian bourse listed itself at the
secondary market under the ticker “DSE”.

https://www.tanzaniainvest.com/dse

Other companies listed

27 listed companies

As of August 2020, there are 27 listed companies, five corporate bonds and eight government
bonds.

Product traded.

products traded at the DSE are financial products. Currently the financial products traded are
Shares and Bonds; Shares are also known as Equities and Bonds are also known as Debt
instruments. Collectively, the products traded at the DSE are referred to as Securities.

Cross-listing.
Cross-listing is the listing of a company's common shares on a different exchange than its
primary and original stock exchange. To be approved for cross-listing, the company in question
must meet the same requirements as any other listed member of the exchange with regard to
accounting policies. These requirements include the initial filing and ongoing filings with
regulators, a minimum number of shareholders, and minimum capitalization.

-Advantages to cross-listing include having shares trade in multiple time zones, boosting
liquidity and providing access to fresh capital.

-Alibaba Group is an example of a cross-listing since the e-commerce giant is listed on the
NYSE and the Hong Kong Stock Exchange.

Trading hours/days.

The exchange is open five days a week, from Monday through Friday. The trading days are
weekly from Monday to Friday, starting from 10.00 am to 14.00 pm. The activities of the
exchange are monitored and supervised by the Capital Markets and Securities Authority
(CMSA).

How trade is conducted

Trading at the Dar es Salaam Stock Exchange (DSE) will likely go up through online system.

Chief executive officer of Capital Markets and Securities Authority (CMSA) Nicodemus Mkama
said yesterday the new equities’ mobile trading platform will stimulate growth of the country’s
capital markets.

‘Hisa Kiganjani,’ the platform, which was launched 15 may 2022 by DSE will allow investors to
buy and sell stocks using their mobile devices through a mobile application or via website.

Mkama, who graced the launch, said the capital market authority approved the platform because
it met both national and international requirements.

said the new development augurs well for CMSA plans to steer to the growth of the stock
markets.“The platform will increase the number of participants in the market and thus push for
more liquidity and growth,” he said selling and buying securities through mobile devices
provide convenience by saving Mr Mkama, who graced the launch, said the capital market
authority approved the platform because it met both national and international requirements.

He said the new development augurs well for CMSA plans to steer to the growth of the stock
markets.

“The platform will increase the number of participants in the market and thus push for more
liquidity and growth,” he said.

He said selling and buying securities through mobile devices provide convenience by saving
time and it would reach many people and potential investors especially those in remote areas.

said: “There are many potential investors who live in upcountry regions, who are interested in
the DSE activities, but they cannot access services. This is because many brokerage firms do not
have office branches in all regions. Time and it would reach many people and potential investors
especially those in remote areas.

https://www.african-markets.com/en/stock-markets/dse/tanzania-mobile-trading-platform-to-
transform-dse-activities