April 9, by Ryan Hoover 53 Comments. Even so, the DSE will likely not be so sleepy five years from now.

One way to get in on the ground floor of these exciting developments is via the stock market. I emailed each of the ten brokers who are licensed to trade on the DSE.

I asked them if they catered to foreign investors, how much they required to open an account, and what documentation was necessary. I found the two brokers listed below to be particularly helpful and responsive.

Commissions and fees are assessed on a sliding scale that is standard across all brokers. Anything greater than that is charged 1. Photo by Siddharth Pendharkar. The Central Depository System CDS records the ownership of Tanzanian securities via electronic accounts.

When you ask a broker to open a trading account, they will send you a copy of the CDS Account Opening Form. After completing and returning it to your broker, you will be assigned a CDS account number. This number will accompany every Tanzanian stock trade you execute, allowing the CDS to keep record of all your holdings in the country. A sample form from a Vertex Securities may be found in the above table. The form typically requires disclosure of your passport number or other ID number, your address, and asks for your preference regarding collection of dividends and payment of fees.

You may email photocopies of all documents to your broker to get a head start on the account opening process, but they must eventually receive the original documentation. After opening your trading account, your broker will provide you with its bank details so that you can fund your account.

The most efficient way to do this is via wire transfer. While some brokers will request a signed trade mandate form, for most brokers, all you need to do is send an email to your broker with your trade instructions.

Keep in mind that many shares listed on the Dar es Salaam Stock Exchange are rather illiquid, so I advise specifying a limit price for all of your orders. This will help you avoid paying significantly more for your shares than you had intended to pay.

Your broker will then execute your trade and send you a contract note that specifies the buy or sell price, commissions, and fees. It is not possible to have stock dividends deposited directly into a Tanzanian brokerage account. You must instead opt to receive a Tanzanian Shilling denominated dividend check or open a Tanzanian bank account to collect the dividends. Because the teller at your local Wells Fargo branch will probably laugh in your face if you ever try to cash a Tanzanian Shilling denominated check there, your best option, unfortunately, is to open a Tanzanian bank account.

Your broker should be able to assist you in connecting with a reputable bank and to help facilitate the account opening process. The CDS will be informed of your local bank details and will route all of your dividends there. The process of opening a foreign brokerage account can be confusing. Dar es Salaam Stock Exchange , How to Invest in Africa , Stockbrokers. Joshua edmund haule says. April 26, at I am a second year student in the institute of finance management,from the procedure on how to buy a share in DSE am not claer with the charges involves in the process of becoming the owner of the share of certain company in DSE market.

Furthermore i request to know about how can come into contact with these brokers. July 18, at 1: Joshua, the information can be easily accessed from DSE offices or online.

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Stocks are bought from different companies ie: Konyagi Distellers, Banks eg: CRDB and so on. Stock agents are located in many places in Tanzania and have all information on how the stock market is, how to make profit from the stocks and how to sell them in near future.

DSE offices are in Posta you can go there and get more information. February 10, at 6: February 10, at 4: The dividend is typically comprised of any leftover profits that management does not deem necessary for future growth of the underlying business.

Therefore, the dividend can vary from year to year according to the health and prospects of the company. May 4, at 1: Trading on the floor should be explained. Does it take place in person or is there an online trading system?

How is the market moving? And what are the closing and opening times? May 5, at 5: I also need to know the minimum amount to open an account.

I want to invest back home. May 6, at Your best bet would be to contact one of the brokers listed Orbit Securities or Vertex Securities in the article above. They do not require a minimum amount in order to invest, so whatever amount you have should be okay.

May 16, at 2: I am a masters in international business student, and I would appreciate if someone can please tell me what are the determinants of foreign equity portfolio investment into the dar es salaam stock market. November 18, at 8: Ryan, Interesting article on the Dar es Salaam Stock Exchange. As a seasoned financial services professional in Tanzania, my experience with the DSE can be summarized two fold.

Firstly, there is a share shortage problem where as there are too few shares available thus driving the prices of the likes of Tanzania Cigarette Company TCC and Tanzania Breweries Limited TBL through the roof.

Secondly, transaction time to fulfillment is relatively slow. Whereas, both individual and institutional investors are unable able to take advantage of short-term share price fluctuations due to limitations in transaction settlement times.

Hopefully with the DSE implementing electronic settlement facilities, stock trading volume may increase thus positively affecting profitability. November 18, at 9: Thanks for the insight, Karume. Electronic settlement should help, as will recent moves to relax restrictions on foreign ownership. September 15, at 2: September 16, at This may entice some investors particularly small investors to buy shares because the cost of buying the minimum lot of shares is suddenly half as expensive.

Meanwhile, existing shareholders will suddenly have twice as many shares, and may be tempted to put a portion of them on the market. January 12, at 1: I always enjoy reading your commentaries on African bourses. What are the 6 counters that foreigners can currently invest in in TZ? March 27, at 3: Am sorry my question is little far from the topic discussed above. Is it possible for me to invest in NYSE while am still living in Dar es salaam and what steps i may take to fulfil this.

March 27, at Have a look at the link below. May 14, at 3: Many thanks for your informative article on the DSE. Could you let me know the process of how a limited liability company would trade in shares in DSE? May 15, at 1: I believe the process is very much the same as the above.

Dar es Salaam Stock Exchange

You may, however, be required to disclose some additional documentation to the broker e. You will also be asked which individuals are authorized to submit trade orders for the LLC. May 19, at 1: Many thanks Ryan for your information. We will try to open an account with one of the brokerage firms in Tz.

We will keep you posted. May 23, at 4: I am in Arusha and would like to participate in the stock market by buying shares. May 29, at Your first step is to phone or email either of the brokers listed in the above article Orbit or Vertex and tell them that you would like to open a trading account.

They should also be able to help you open an account. After that, you simply need to fund your account and instruct your broker to purchase shares for you. May 25, at 9: May 27, at 2: I suggest that you contact either Orbit Securities http: Both of them are licensed brokers and both have offices in Dar es Salaam.

You might also inquire at your local CRDB bank branch. I know of at least one investor in Tanzania who has opened a trading account through them. June 6, at 1: Mostly I am interested to write a book about shares in our local language that will assist my colleagues who are not conversant in foreign languages. So, how can you help me get relevant information about the DSE, and how it conducts its normal activies, in order to meet my goal of educating all Tanzanians?

June 8, at That sounds like a great idea, Uwezo. If you have additional questions, I would contact local stockbrokers to learn more. July 5, at 2: September 3, at 2: September 6, at 6: They can help you to open a brokerage account thanks to their partnership with Solomon Stockbrokers. September 22, at 8: The point being, to keep the cost of investing as low as possible. I eagerly await your response. September 25, at 7: October 6, at 5: Here is my idea.

TPDC should be helped out to go for IPO the focus should be on targeting low income Tanzanians whom will be educated on investing in stock market. Why then should we wait for donors. This is the public corporation dealing with research on gas and petrol ex proration where minds of Tanzanians is currently in to. That means people would have more trust to put there money. However on dividend issuing investors would realise and have the filling that they are part of gas resources beneficiaries that is said to be 32trillion cubic M.

Conclusion, Low income investors would be a solution to improve DSE market performance furthermore drawing attention to many investors to trade with DSE. October 24, at 1: February 19, at 8: Hi Ryan, things have really changed since the DSE opened up to foreigners. Trade volumes have really skyrocketed.

In the past two days alone, equity turnover has exceede 10 million dollars each day, a far cry from an average of , dollars a WEEK a few years ago! February 21, at Great to hear from you. Definitely exciting times for the DSE. I trust your investments have treated you well! March 10, at 8: April 20, at 3: Acquiring shares in a company needs a process of purchasing a number of potions or shares whereby the total shares is termed to execute as a capital of the company.

In so doing a business runs in either a profit or loss. During a definite duration of a business the net profit is finally distributed equally to all the shares.

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The amount will be fluctuating every time depending on how best or bad the business is performing. May 15, at 8: I am planning to sell my shares which I own from one of the Bank in Tanzania.

This is because the trend of the stock price seems to stuck in a couple of the months. Is it a right a time for me to sell them? May 15, at 3: This is the share price divided by shareholders equity per share. Is it less than 1. Now, also look at how much the bank has earned over the past year.

Now, look at the dividend yield. July 22, at July 23, at July 29, at Its maybe a bit off topic, but can you tell me, if it is possible for locals in Dar Es Salaam to buy investment funds or ETFs? And if so, where and how? July 29, at 1: You can see a list of providers at the following link: July 29, at 3: July 29, at 9: July 30, at 5: I want to know how I can be a member of DSE and how to meet with a broker if i wish to sell shares.

To become a licensed dealer on the DSE, you must complete this application form http: In order to meet with a broker, you can simply call or email to set up an appointment. August 25, at 6: August 25, at 3: They may be able to assist you with opening a DSE trading account through their partnership with Solomon Stockbrokers.

October 29, at 7: October 29, at As far as I know, the only way to purchase shares of companies listed on the DSE is through a broker.

March 4, at 4: Hi, I am in the process of opening a brokerage account with Orbit. Unfortunately I cant get CDS approval until I have opened a bank account inside of Tanzania I am a foreigner. Any advice on how to go about this? So far I have had very little luck contacting anyone within the country. November 20, at Hi Ryna , What are the minimum things to check or consider before buying shares of certain company with the aim of inventing and get my money back as quickly as possible?

March 16, at March 20, at 7: The process outlined in the article above should work for non-residents, too. If you would like a single platform to invest across all African markets, I suggest that you contact Momentum SP Reid https: Your email address will not be published.

My name is Ryan Hoover, and I'm an investment analyst and writer with a passion for African stock markets. Articles African Stock Markets Performance Botswana BRVM Ghana Kenya Malawi Mauritius Mozambique Namibia Nigeria Rwanda South Africa Tanzania Uganda Zambia Zimbabwe Newsletters JSE Share Advisor KenyaVestor Stock Scout About Login.

Investing in Africa A Field Guide to Sub-Saharan Stock Markets. Home JSE Share Advisor KenyaVestor Contact. Tanzanian Stockbrokers I emailed each of the ten brokers who are licensed to trade on the DSE. Photo by Siddharth Pendharkar Step 1: Complete the CDS Account Opening Form The Central Depository System CDS records the ownership of Tanzanian securities via electronic accounts.

Mail the original CDS form, account opening form, and copy of your passport to your broker You may email photocopies of all documents to your broker to get a head start on the account opening process, but they must eventually receive the original documentation. Wire Funds to Your Brokerage Account After opening your trading account, your broker will provide you with its bank details so that you can fund your account. An Important Note on Dividends It is not possible to have stock dividends deposited directly into a Tanzanian brokerage account.

Further Reading — How to Invest on the Botswana Stock Exchange — How to Invest on the Ghana Stock Exchange — How to Invest on the Nigerian Stock Exchange — How to Invest on the Zimbabwean Stock Exchange.

Comments Joshua edmund haule says April 26, at I hope you will explain it to me. Companies typically split their shares when they wish to make their stock more liquid. Hi Anon, Have a look at the link below. Dear Ryan, Many thanks for your informative article on the DSE.

Hi Pius, I believe the process is very much the same as the above. Keep us posted on how it goes! Hi John, Your first step is to phone or email either of the brokers listed in the above article Orbit or Vertex and tell them that you would like to open a trading account. Hi Litega, I suggest that you contact either Orbit Securities http: Hope this helps and keep us posted on how things go for you! All the best and keep us posted on your progress!

How many times do i have to buy shares per year in order to get more money? Ryan, I am planning to sell my shares which I own from one of the Bank in Tanzania. Hope this helps and happy investing!

Thank you very much for the list, Ryan! Keep me posted on how things go for you! Hi Kitomary, To become a licensed dealer on the DSE, you must complete this application form http: All the best to you!

Dear Ryan , I am in Indian Please advise how I can invest in the stock in Africa. Hi Mohan, The process outlined in the article above should work for non-residents, too. Leave a Reply Cancel reply Your email address will not be published. About Me My name is Ryan Hoover, and I'm an investment analyst and writer with a passion for African stock markets.

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