THE Capital Markets and Securities Authority (CMSA) has encouraged more cement company owners to list their businesses at the Dar es Salaam Stock Exchange (DSE) to increase financial inclusion and create more investment opportunities.
Speaking during the official launch of Tanga Cement Company’s 204 bn/- rights issue on Monday, CMSA Chief Executive Officer Nicodemus Mkama revealed that only two cement firms are currently listed on the DSE. He stressed the urgent need for more companies in the sector to join the exchange.
Mkama described Tanga Cement’s rights issue as a major milestone in the company’s capital-raising and strategic restructuring journey.
He confirmed CMSA’s approval of the company’s prospectus to issue 127,342,090 new ordinary shares at TZS 1,600 each.
The shares will be offered to existing shareholders at a ratio of two new shares for every one currently held.
“The strategic steps being taken by the company are not only critical for its growth but also reflect broader reforms among publicly listed firms aimed at boosting operational efficiency,” he said.
He emphasized that the rights issue complies fully with the Capital Markets and Securities Act (Cap 79) and the Capitalisation and Rights Issues Regulations of 2000.
Mkama highlighted that the move aligns closely with Tanzania’s Development Vision 2050, which aims to elevate the country to upper-middle-income status and build a USD 1 trillion economy by mid-century.
“These initiatives will significantly drive the growth of the industrial sector, particularly cement production and distribution vital pillars for national infrastructure development,” he added.
The CMSA boss also praised Tanga Cement’s management for reducing foreign-denominated debt, boosting revenues and profitability, and expanding investment opportunities for shareholders and the wider public.
Peter Nalitolela, CEO of the DSE echoed these sentiments, calling the launch a landmark event that will deepen Tanzania’s capital markets.
“Once completed, the new shares will be listed on the DSE, offering the public greater opportunities to invest,” he said.
Founded in 1988 by the Tanzanian government, the company was later listed on the DSE as part of a privatization drive to enable more Tanzanians to participate in ownership of major enterprises.
Through significant transformation and strategic investments, the company has become one of Tanzania’s leading cement manufacturers and a key contributor to national infrastructure development.
Finance Manager Tumaini Ishemo said the company has heavily invested in modern machinery to boost production efficiency and competitiveness.
“Despite challenges last year, we remain confident in our long-term prospects and expect stronger performance in the coming years,” he concluded.