Tanzania amends telecom IPO rules to permit foreign investors

26 Jun 2017

The government of Tanzania is allowing foreign investors to purchase shares in telecoms operators that are required to list on the Dar es Salaam Stock Exchange (DSE), reports Bloomberg, citing Finance Minister Philip Mpango. In June last year an amendment to the Electronic and Postal Communications Act of 2010 made it a legal requirement for the country’s telecoms operators to float at least 25% of their shares on the DSE. Mobile market leader Vodacom Tanzania is currently the only operator to have launched an initial public offering (IPO), which was extended by three weeks to allow investors more time to participate. The KES476 billion (USD209 million) offering was only open to local investors, however, and the firm has yet to announce the results and has delayed its debut on the DSE. Amendments to the law will also exempt small telecoms companies with Application Services Licences from listing and limit the IPOs to businesses with Network Facility and Network Services Licences.

Tanzania, Vodacom Tanzania