The factors affecting demand and supply of securities in sub Saharan Africa: the case of Securities Listed at Dar es Salaam Stock Excharge (DSE)

This study examined at the factors influencing the demand and supply of securities listed at Dar es Salaam Stock Exchange. It focused on current and potential individual investors, broker at the market and the Exchange itself as regulator. The study established the factors that affected demand of securities among individual investors to be among others: low income, lack of knowledge, general education level and geographical location. The study mentioned factors causing less listed securities at the Exchange to be high costs for listing, reporting requirement and corporate governance for potential companies. It is revealed that failure by the government to release its stake in privatized companies to the public through ipos and inadequate fiscal incentives as some of hindering factors on supply side at DSE. Further, it was established that the tendency of ‘buying and holding’ of securities among most participants contributed to the market inactivity. The study recommended the government to take measures and educate the public about securities. It further advised the government to quickly release off its stakes in privatized companies and provide more fiscal incentives to key market participants as measures that can change the current position. Importantly, it should consistently pursue macroeconomic policies, particularly in the area of inflation management. The reporting journalists must be trained on securities and media must increase coverage on securities.