Rwanda and Tanzania stock markets ranked among top six in sub-Saharan Africa — Transcontinental Times

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AFRICA: The Rwandan and Tanzanian stock exchanges were ranked among the top six having had a positive impact on their shareholders in sub-Saharan Africa.

Analysts from African Financials Group said in their report that the Rwanda Stock Exchange (RSE) and the Dar es Salaam Stock Exchange (DSE) posted returns of 7.2% and 9.1% respectively over the past 12 months until June of this year.

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The report titled Sub-Saharian Africa Top 30 Companies (excluding South Africa) lists other African countries that performed well during the period, including Nigeria which recorded a return of 20.9%, Zambia of 12 .1%, Seychelles 5% and Botswana. 2.8 percent.

Further, the report dated July 2022 reveals that investors at Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE) lost 28.2% and 20% of the value of their investments. This was recorded between June 2021 and June 2022.

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In June, the Kenyan stock market plunged 4.3%, while the Tanzanian and Ugandan markets fell 0.7% and 3% respectively. Similarly, the Rwandan stock market improved by 1% during the month.

Tanzanian President Samia Suluhu has prioritized some policy changes aimed at attracting investment to the country. However, it is contributing significantly to the increase in trading activity on DSE, which grew 9.8% in the five months to May this year.

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For example, in early June, the Bank of Tanzania (BoT) relaxed rules allowing, for the first time, investors from the East African Community (EAC) and the African Development Community (SADC) to deal in treasury bills and bonds issued in Tanzania. .

Between January and May, the Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE) fell 25% and 17.6% respectively. However, in May, DSE and RSE rose 2.2% and 2.6% against NSE and USE which fell 14.5% and 6.9% respectively.

According to the report, the Nairobi Stock Exchange is the third worst performing major stock market in Africa since January. This is due to capital flight from foreign investors and the ease of repatriation from equity sales compared to other capital on the continent.

As a result, NSE ranked eighth among the continent’s top 10 stock markets with a negative 30% return in dollars year-to-date.

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  • Mohammed Yakubu is an investigative journalist who reports on public health, human rights, climate change, education, gender issues and more.

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