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| NMB Bank PLC Chief Executive Officer, Ruth Zaipuna (3rd right) and Orbit Securities counterpart, Godfrey Gabriel (2nd left) exchange documents after signing a Memorandum of Understanding that allows investors to use the Bank's branches to trade in shares and bonds of firms listed on the Dar es Salaam Stock Exchange in Dar es Salaam. |
You can now buy and sell securities listed on the Dar es Salaam Stock Exchange (DSE) from any NMB Bank branch - thanks to a partnership deal signed between the lender and top stockbroker Orbit Securities.
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The financial facilitative service agreement follows NMB’s acquisition of approval to act as agent of licensed stockbrokers at the Dar bourse from the Bank of Tanzania (BoT) and the Capital Market and Securities Authority (CMSA).
Announcing the two developments before inking deal at the bank’s head office in Dar es Salaam, NMB CEO Ruth Zaipuna said apart from commercial benefits, NMB has ventured into this line of business to help increase the number of Tanzanians participating in the local capital markets.
She said the BoT and CMSA approvals accord investors the opportunity to use NMB wide branch network to trade in shares and bonds of firms listed at DSE and also enable it to contribute to the growth and development of the whole financial sector.
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“Today, we are announcing securing of the approval to start selling and buying both shares and bonds listed at DSE through all our 231 branches countrywide and that starts with signing of this agency agreement with Orbit Securities,” Ms Zaipuna remarked, noting that currently very few people invest in the capital and securities market.
Referring to the Finscope’s 2023 report, she said only 0.5 percent of Tanzanians use the capital markets to generate income or raise capital for investment purposes. Being a big bank, she explained, NMB is obliged to help address the fiscal anomaly and development shortcoming.
“NMB is a bank that is present in almost all districts of Tanzania, therefore when it starts trading in shares and bonds of listed companies through its branches, that means reaching more people and increasing the number of Tanzanians using the capital and securities market.”
Rooting for NMB to hasten similar agency arrangements with other brokers, DSE acting CEO, Mary Mniwasa said the development has been longer overdue in terms of making the stock market vibrant and addressing the limited market outreach of the brokerage firms.
According to her, the strategic deal offers many Tanzanians the opportunity to use and invest in corporate shares and bonds as well as government securities which many could not do because of proximity reasons.
“This is a very big step in the vibrancy and development of DSE and the future looks more promising now for the whole capital and securities market,” she noted, with Mr Alfred Mkombo who represented the chief executive officer of CMSA, echoing a similar sentiments.
According to him, the novel NMB financial service is a historic revolutionary feat for not only the capital markets and the financial sector but the whole national economy at large.
On his part, the CEO of Orbit Securities, Mr Godfrey Gabriel, said the partnership has opened a new chapter in the sub-sector and ushered in a new era for investors’ participation in the trading of both corporate and government securities.
He said NMB’s innovation prowess and unmatched market outreach and the stockbroker’s huge market experience and its over 60 percent lion share of all equity trades executed at the bourse are set to make a huge difference not only in the market but also in people’s lives through financial inclusion.
“These joint efforts makes it possible to attain the target set in the Financial Sector Development Master Plan of ensuring at least five percent of all Tanzanians can access capital markets products and services by 2030,” he noted.
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“NMB is a bank that is present in almost all districts of Tanzania, therefore when it starts trading in shares and bonds of listed companies through its branches, that means reaching more people and increasing the number of Tanzanians using the capital and securities market.”
Rooting for NMB to hasten similar agency arrangements with other brokers, DSE acting CEO, Mary Mniwasa said the development has been longer overdue in terms of making the stock market vibrant and addressing the limited market outreach of the brokerage firms.
According to her, the strategic deal offers many Tanzanians the opportunity to use and invest in corporate shares and bonds as well as government securities which many could not do because of proximity reasons.
“This is a very big step in the vibrancy and development of DSE and the future looks more promising now for the whole capital and securities market,” she noted, with Mr Alfred Mkombo who represented the chief executive officer of CMSA, echoing a similar sentiments.
According to him, the novel NMB financial service is a historic revolutionary feat for not only the capital markets and the financial sector but the whole national economy at large.
On his part, the CEO of Orbit Securities, Mr Godfrey Gabriel, said the partnership has opened a new chapter in the sub-sector and ushered in a new era for investors’ participation in the trading of both corporate and government securities.
He said NMB’s innovation prowess and unmatched market outreach and the stockbroker’s huge market experience and its over 60 percent lion share of all equity trades executed at the bourse are set to make a huge difference not only in the market but also in people’s lives through financial inclusion.
“These joint efforts makes it possible to attain the target set in the Financial Sector Development Master Plan of ensuring at least five percent of all Tanzanians can access capital markets products and services by 2030,” he noted.
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