TCRA ordered to get tough on operators which delay stock market listing

5 Jun 2017

Tanzanian president John Magufuli has ordered the Tanzania Communications Regulatory Authority (TCRA) to revoke the licenses of mobile network operators (MNOs) which delay listing the required 25% of their shares on Tanzania’s Dar es Salaam Stock Exchange (DES), writes Agence Ecofin. Speaking on 1 June, Magufuli stated: ‘The telecommunications companies make profits large enough to consider the punitive fines regularly inflicted by the TCRA like peanuts. For a company that generates billions of shillings of profits it is easy to opt to pay the fines imposed by the regulator rather than to introduce its shares on the DES, as required by law.’

All companies operating in Tanzania’s mobile market were required to list 25% of their shares on the DSE by 31 December 2016. However, this deadline was not met by any of the nation’s operators, and just two cellcos – Vodacom and Tanzania Telecommunications Company Limited [TTCL] – are currently said to be working towards an IPO. As previously reported by CommsUpdate, meanwhile, Tanzania’s Capital Market and Securities Regulatory Authority (CMSA) in February 2017 suspended the planned IPO of Millicom Tanzania (Tigo), pending the resolution of a shareholder dispute.