A FEW weeks after Tanzania President John Magufuli directed telecom firms to list at the Dar es Salaam Stock Exchange (DSE) or quit, the leading electronic payment solutions provider Maxcom Africa Ltd, which trades as Maxmalipo, has acquired Public Listed Company status and is now in the final stage to float its shares at the stock market.
Addressing reporters in Dar es Salaam yesterday, the chairman of the company’s Board of Directors, Prof Samwel Wangwe, said the company was now known as Maxcom Africa PLC.
He explained that since the company had already filed its prospectus to the Capital Markets and Securities Authority (CMSA), it was now waiting for further instructions from the authority. The firm is operating in six African countries Tanzania, which hosts the firm’s headquarters, Rwanda, Kenya, Uganda, Zambia and Burundi.
“The listing will enable our company operate in compliance with the country’s laws and regulations,” Prof Wangwe said. The application to go for IPO is to conform with the Electronic and Postal Communication Act of 2010 and the Finance Act 2016, which require communication operators to offload 25 per cent of their shares to the public.
At the launch of the Electronic Revenue Collection System (e-RCS) early this month, President Magufuli ordered licence revocation for mobile phone companies which were reluctant to list on the DSE.
He directed the Tanzania Communications Regulatory Authority (TCRA) to act tough against stubborn companies, emphasizing that all mobile phone firms should float shares on the bourse. Prof Wangwe said implementation of the president’s directive would improve the company’s efficiency.
He stressed that during his term, he would strive to manage the company effectively and expand its activities within and beyond the country. “Listing at the DSE will enhance transparency and enable the government to collect its fair share of revenues, simultaneous with making our operations open,” said the board chairman.
He believed the IPO fund would facilitate the firm’s expansion ambition in Africa, and called on other firms to respond to the president’s order to list at the DSE. “Our goal is to create over 100,000 jobs within and outside the country by 2020,” Prof Wangwe said, pointing out that its workforce was currently 16,000.”