COVENANT Bank and Zan Securities have partnered in supporting the Tanzanians in informal sector to buy recently floated shares of Vodacom Tanzania.
The Vodacom Tanzania has recently listed its 560 million shares at Initial Public Offer (IPO) selling 850/- each, eyeing to raise 476bn/- ($213 million). Under the Electronic and Postal Communications Act of 2010, the government made it a legal requirement for the country's telecoms operators to float 25 per cent of their shares on the DSE so as to boost local ownership of the mobile telephone companies.
At the weekend, the Covenant Bank and Zan Securities announced their partnership that is aimed at enabling entrepreneurs in the informal sector to own the company through buying of shares.
The Managing Director of the Bank, Ms Sabetha Mwambenja, said under the partnership, the Covenant Bank would act as a bridge connecting entrepreneurs with the Zan Securities through which they would buy the shares. Ms Mwambenja said the target would be micro entrepreneurs organized in their groups such as cooperatives or Village Community Banks (VICOBA).
"We will go across the country, visiting their offices and educating them over shares and connecting them with Zan Securities," she said.
The Chief Executive Officer of the Zan Securities, Mr Raphael Masumbuko, noted that they saw it as opportunity for those in the informal sector to benefit from the Vodacom's shares.
"This group consists of large number of Vodacom subscribers and they have been contributing to company's profits, so should also benefit from the profit through buying shares," he said.