Nairobi — The decision by Barrick Gold to snub Tanzania 's capital market to raise money for its local operations has whipped up a groundswell of nationalistic sentiment.

As far as resource nationalism goes, Tanzanians are missing out.

Listing on Dar Es Salaam Stock Exchange (DSE) would have made it much easier and cheaper for citizens of little means to buy shares in African Barrick Gold.

Buying these shares on the London Stock Exchange (LSE), after the Central Bank relaxed capital control rules for this issue, however entails foreign brokerage fees and foreign currency exchange risks, which small investors.

Barrick Gold's decision to snub DSE in favour of London, at least for the initial listing, has opened a wider debate among watchers of Africa's fast emerging stock exchange.

Is it that $1 billion that Barrick Gold seeks is so huge such the management feared that a primary listing on DSE would flop, or is it that Tanzania's capital control regime which makes it difficult for investors to move money in and out of the country is a major risk to foreign portfolio managers who tend to buy gold shares?

Safaricom 's IPO in Kenya, which attracted $2 billion, mostly from small investors in East Africa, proved that there is sufficient local capital to finance attractive IPOs.

However, marketing African Barrick Gold to small investors and local portfolio managers as a primary listing one DSE - or even on the much bigger Nairobi Stock Exchange - could have been a challenge in a regional market that lacks sufficient depth.

This is a wider African issue that continues to affect resource rich nations in sub-Sahara Africa, and even in South Africa.

Multinational mineral companies like Ashanti Gold, Anglo-American, De Beers usually seek their primary listing in London and New York, and cross-list in African markets to take satisfy nationalistic concerns.

An issue like African Barrick Gold which would required significant foreign participation - even within EAC would have faced significant challenges attracting sophisticated investors because of capital control Tanzania.

As EAC economies converge, Tanzania will increasingly face challenges in developing its capital markets because it limits free flow of capital within the region.