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Acacia Mining delists from Dar es Salaam Stock Exchange
According to the Dar es Salaam Stock Exchange Plc, Acacia mining officially delisted from the bourse on Monday, two months after the company was delisted from the London Stock Exchange (LSE) Group. This will cut the DSE's total market capitalization by $1.182 billion. Also Vodacom Tanzania earnings rose by 6.5 per cent in the six months to September 2019, driven by strong revenue growth in its M-Pesa, mobile data and messaging services. Alpha Marwa, Managing Partner at Vervet Global Tanzania joins CNBC Africa for more.
Wed, 20 Nov 2019 15:07:33 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Acacia Mining's delisting from the DSE results in a loss of 2.7 trillion shillings in market capitalization, but minimal impact on local trading activity
- Anticipation of new mining companies listing on the DSE in the upcoming year driven by regulatory requirements and market conditions
- Vodacom Tanzania reports a 6.5% earnings increase attributed to strategic initiatives, including M-Pesa growth and cost-saving measures
Tanzania's capital markets are witnessing significant shifts as Acacia Mining officially delists from the Dar es Salaam Stock Exchange (DSE) after being delisted from the London Stock Exchange (LSE) Group two months prior. The move has resulted in a loss of approximately 2.7 trillion shillings in market capitalization for the DSE, reducing the total market capitalization by $1.182 billion. However, the impact on the local market has been limited due to most trades being conducted on other exchanges within the SAC exchange. The domestic market cap remains relatively unchanged at 9.01 trillion, indicating a collective compliance effort rather than a substantial shift in local trading activity. Despite the loss incurred from Acacia Mining's delisting, there is optimism for the DSE's future prospects, with expectations of new companies, particularly in the mining industry, listing on the exchange in the upcoming year. Regulations governing the mining sector, such as the requirement for companies to list a certain percentage of their shares on the SAC exchange, may influence the listing decisions of mining companies. While there are no indications of Barrick Gold Corporation's imminent listing, the regulatory landscape and market conditions will play a pivotal role in shaping future listings. The capital markets in Tanzania have exhibited stability, with notable interest in water company shares driving market performance. Telecom company Vodacom Tanzania reported a 6.5% rise in earnings in the six months leading up to September 2019, attributed to strong revenue growth in its M-Pesa mobile money platform and data services. CEO Kuros Tohisham's strategic initiatives, including promoting data services, expanding network coverage, and enhancing mobile money platforms, have contributed to the company's financial growth. Additionally, cost-saving measures such as leveraging online platforms and cloud services have further boosted revenue streams. While M-Pesa remains a predominant contributor to Vodacom Tanzania's earnings, other mobile payment options like microlending services complement the overall payment ecosystem. Empowering consumers with convenient and reliable payment solutions is essential for driving adoption rates and enhancing customer satisfaction. Tanzania's GDP expanded by 7.2% in the second quarter, driven by growth in the construction, agriculture, and mining sectors. Local investments in these key sectors have played a significant role in stimulating economic growth and creating opportunities for entrepreneurial ventures. The inflation rate in the third quarter experienced a slight uptick, rising by 0.1% to 3.6% compared to the previous year. The increase in demand for goods and services stemming from the growth in construction, agriculture, and mining activities has contributed to the uptick in inflation. As Tanzania's capital markets continue to evolve, regulatory compliance, sectoral growth, and economic indicators will shape the trajectory of the financial landscape.
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