[2008-04-18]  Dyer & Blair Appeals to Tanzania Central Bank
JIMNAH Mbaru, the chairman of Dyer & Blair Investment Bank, has appealed to Tanzania's central bank governor to rescind his decision barring Tanzanians from participating in the Initial Public Offer (IPO) of Safaricom.

The bank said participating in the IPO contravened the country's financial regulations. Tanzania's capital account is not liberalised, making it impossible for Tanzanians to participate in the IPO.

"The sought dispensation would be difficult to administer given the existing limitations on convertibility of East African currencies," the central bank said in a statement last week.

But Mbaru argued that in the spirit of regional integration, Kenya's finance minister, Amos Kimunya, stated in June last year that Kenya had opened her capital markets to allow East African citizens participate as local investors.

Kimunya said Safaricom was the first company to be offered to East Africans.

"We recognise and appreciate your concern that firms wanting Tanzanian shareholders should list on the Dar-es-salaam Stock Exchange (DSE). But it is our plan that all companies listed on DSE, Uganda Securities Exchange, Rwanda Stock Exchange and Nairobi Stock Exchange will soon be crosslisted," he said in a letter of April 15.
Source: Copyright © 2008 New Vision.