Tanzania telecoms finally wiggle out of law on listing on DSE

Telecoms

The Tanzanian government has been forced to amend a law that required telecommunications companies to list on the Dar es Salaam Stock Exchange, following strong opposition from the companies.

For nearly two years, the government has been locked in a tug-of-war with mobile phone firms over adherence to the Electronic and Postal Communications Act (Epoca), which requires them to float at least 20 per cent of their shares on the DSE for citizens to buy.

The companies have protested the requirement, saying that the stockmarket performance could impact negatively on the share prices.

After the enactment of Epoca in 2010, a regulation to enforce the law was prepared in 2011, but the telcos’ refusal to comply necessitated rounds of consultation with the government.

Clause 79 of Epoca says: “Existing licensee of Network Facilities, Network Services, Application Services or Content Services shall... within three years from the commencement of this Act, and in accordance with requirements of the Capital Market and Securities Act, be required to offer shares to the public and subsequently list on the stock exchange.” Read the full story in The East Africa here: