Competitive Advantages and Challenges in the Capital Market in Tanzania: the Case of Dar Es Salaam Stock Exchange (DSE)

Msaky, Daniel M. (2014) Competitive Advantages and Challenges in the Capital Market in Tanzania: the Case of Dar Es Salaam Stock Exchange (DSE). Masters thesis, The Open University of Tanzania.

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Abstract

The study was done to examine competitive advantages and challenges in the capital market in Tanzania the case being Dar es Salaam Stock Exchange (DSE). This was conducted in Dar es Salaam city, where the largest number of commercial banks, listed companies, and regulatory agencies are located. This was primarily a descriptive study where both qualitative and quantitative approaches were used to conduct the study. The objectives of the study were to examine the extent to which size of instruments traded at DSE and problems of liquidity relate to efficiency performance of DSE, and whether or not conditions, rules and procedures set by DSE affects efficiency of Dar es Salaam Stock exchange. Furthermore the study examined the extent to which information accessibility affects performance of DSE. The finding of the research study reveals that there is lack of instruments or product diversification in the DSE relative to income investors. Moreover, the study found out that DSE listing conditions are too stringent for many companies to comply.Finally, the study reveals that there is lack of adequate financial security education to investors in the capital market. It was found out lack of instrument diversification does not provide incentive for investing in the DSE. From the study it is recommended to introduce new instruments at DSE for capital market development in Tanzania. Furthermore it is recommended that the government should come with the new policy of repositioning Tanzania for the gas economy, whereby TPDC will be allowed and helped out to go for IPO. Approximately, 750,000 Trillions of Tanzanian shillings will be raised through IPO and sought to contribute significantly to the efficiency of DSE

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