Tanzania’s telcos may get relief from mandatory DSE listing rule

Tanzania’s telcos could get a reprieve from a current law requiring their listing on the Dar es Salaam Stock Exchange. The Electronic and Postal Communications Act (EPOCA) requires that all holders of network facilities or service licenses must list 25% of their issued and paid-up share capital on the Dar es Salaam Stock Exchange (DSE). To do this, the companies must also comply with the listing criteria of the DSE, which stipulates that: 

• A company must be listed as a public entity under Tanzanian law, allowing it to issue public shares.
• A company must have had a profitable track record running for two to three years before the application.
• A company must have paid up share capital of one billion Tanzanian shillings.

So far, only Vodacom Tanzania has complied with the Epoca and Finance ACT 2016 requirement, while other major operators have faced challenges. 

According to the Tanzania Communications Regulatory Authority (TCRA), the country has six primary mobile operators, with Vodacom and Airtel Tanzania owning 30% and 28% of the market share. Other license holders offer services related to the mobile industry. The latest Indications from the government are that it is willing to revisit the issue and amend the law in line with industry concerns. 

Last Month, the Minister for Communication and Information Technology, Jerry Silaa, indicated the government’s readiness to engage with stakeholders to review the implementation of this law, aiming to create a more conducive environment for compliance and sector growth.

Companies such as Tigo Tanzania have faced internal shareholding challenges that have hindered their listing efforts, and others like Airtel and Halotel have faced issues with their applications being rejected by the Capital Markets and Securities Authority (CMSA), which cited incomplete applications or a lack of transparency. 

Some companies may also not meet DSE’s profitability requirements. There are also concerns about DSE’s ability to simultaneously absorb multiple large initial public offerings (IPOs). These challenges highlight the importance of the government listening to industry stakeholders to develop practical regulatory requirements.