By The Independent Team
Despite Tanzania’s resistance to cross-border investment, a position that contradicts the East African Community Customs Management Act, plans are going ahead to integrate the three major bourses within the region, namely the Dar es Salaam stock exchange, the Nairobi stock exchange and the Uganda securities exchange, plus the stock exchange in Burundi.
The act stipulates that residents of the original East African Community (EAC) states — Kenya, Tanzania and Uganda ” should treat each other’s nationals as locals when it comes to investment opportunities in their respective countries.
Contrary to the act, the Tanzanian government barred non-citizens from participating in the initial public offer (IPO) when it sold its 21 percent stake in the National Microfinance Bank (NMB) this August.
When Safaricom, a Kenyan mobile telephone provider and East Africa’s most profitable company, issued its IPO this March, Tanzania blocked its own citizens from participating in the investment.