Dar es Salaam Stock Exchange CEO on Brexit

The Dar es Salaam Stock Exchange (DSE) has recently reported a substantial improvement in turnover, following a 1.33% increase in the previous market session. Moremi Marwa, the CEO of DSE, sat down with CNBC Africa's hosts George and Durango to discuss various issues affecting the market, including the impact of Brexit. Marwa stated that despite global market fluctuations due to Brexit, the DSE has not seen a direct impact on its market performance. The CEO highlighted that foreign investors play a significant role in the market, contributing to almost 70% of trading activities. While retail investors also participate in the market, the majority of liquidity comes from institutional investors, both local and foreign. Marwa emphasized the importance of encouraging more retail investors to utilize the exchange as an investment platform. Over the past three years, the number of investors in the market has increased from 250,000 to approximately 460,000, largely due to several successful IPOs. These new investors, especially retail ones, have helped boost liquidity in the market. The CEO noted that total trading activities have increased significantly, from $25 million per annum three years ago to nearly $500 million last year, marking a substantial improvement in liquidity and market capital. Marwa attributed this growth to regulatory changes that allowed for more foreign investment, leading to better price discovery, valuations, and returns for investors.