“Going for Inclusive Growth – Building Capital Market Capacity for the Long-term in Tanzania”

With support from FSD Tanzania, FSD Africa worked with the London Stock Exchange (LSEG) Academy in 2014 to build capacity within Tanzania’s capital markets through targeted skills development.

Starting in January 2014, three phases of training were delivered to 103 professionals from the Dar Es Salaam Stock Exchange (DSE), Capital Markets & Securities Association (CMSA), Office of the Prime Minister, Ministry of Finance and a range of local brokers. To help achieve a lasting impact, LSEG Academy trainers also trained 14 Tanzanian trainers from local institutions such as the University of Dar Es Salaam and the University of Dodoma.

The training rated well, scoring an average of 4.8/5 on overall satisfaction. Evidence indicates that knowledge and expertise has increased. In Phase 2 and 3, practitioner test scores increased from 58% and 69% on entry to 84% and 77% on exit respectively.

A more detailed evaluation shows promising signs of the impacts on the wider capital market system. In September 2014, the CMSA signed an MoU with London-based Chartered Institute for Securities & Investment (CISI), which will accelerate the development of a new capital market qualification for East Africa. There are also signs of replication. Again in September 2014, the LSEG Academy was separately contracted by a Tanzanian broker to deliver a training course to 15 participants on the post trade environment.

Between January and December 2014, the DSE reported an increase in total market capitalisation of 30%, 2 listings and an increase in market liquidity. According to the DSE CEO, Moremi Marwa: ‘our partnership with the UK is now moving away from aid towards trade and investment.’