NAIROBI (Reuters) - Tanzania will lift rules limiting the amount of shares foreigners can buy at its stock exchange, in line with regional integration goals, the bourse chief executive said on Wednesday.
Out of the five-nation East African Community (EAC) bloc of Rwanda, Burundi, Uganda, Tanzania and Kenya, Tanzania has tighter capital controls, including barring foreigners from investing in government securities.
"Tanzania is not exactly a closed market. Up to 60 percent of any listed security is available to any citizen of the world. 40 percent is reserved for Tanzanians," Gabriel Kitua told Reuters at a meeting organised by the Nairobi bourse.
"Now that is still some kind of a control but what I know is that with time, the control will be erased especially as we go to the regional monetary union where free movement of funds across the countries will automatically be there."
EAC plans to have a monetary union in place by next year, before transforming into a political federation by 2015.
The Dar es Salaam bourse has 15 listed firms but is looking to increase that to 18 after the initial public offering of an airline and cross-listing of shares of two mining firms listed in London, Kitua said.
"One (cross-listing) is almost complete, the approval process is almost complete. The other one is in very initial stages ... it is a mining company," Kitua said.
Sale of shares in Precision Air is slated for next month while African Barrick Gold Corp. is the London-listed miner whose approval of a cross-listing plan is almost complete.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment