Dar es Salaam — Improved disclosure of information on capital markets is one of the few sustainable means of attracting liquidity to capital markets without sacrificing stability and sustainability, an expert has said.
Speaking during the Association of Chartered Certified Accountants (ACCA) meeting in Dar es Salaam last week, the Deputy President of ACCA Prof Barry Cooper said that there was need for disclosure of information on capital markets especially in emerging and frontier economies like Tanzania if the capital market is to play a role in the development of the country.
Cooper said capital markets in Tanzania and Africa at large allow both large and small firms to source funds more cheaply and reliably than it would be if such firms were not listed on the stock markets.
He said there was need for access to reliable information which largely depended on the skills of professional accountants if the role of capital markets in the economy was to be realized.
According to him, ACCA was focused on creating relationships with local authorities in the respective countries where they feel their presence in Africa is to ensure that the public is well informed on financial issues especially markets with complex structures.
He added that these complexities in market structures raised a need for increasingly sophisticated financial management leading to a need for transformation of the finance function to play a more central role in governance, risk compliance alongside financial reporting and management accounting.
The Manager, Research and Market Development at the Dar es Salaam Stock Exchange (DSE) Mr Mohamed Kailwa said there was need to sensitize the public and local firms on the benefits of listing their firms as currently only 17 firms have been listed since its inception.
He said listing firms with the capital markets would not only improve companies' ability to access capital but also improve companies' image amongst supplies, customers, staff and banks which in turn attract investors and investments.
He said that the DSE would soon establish an alternative market segment to cater for SMEs known as EGM .