Assessment of the impact of Investor’s social economic factors on their participation on capital market in Tanzania

1. COURS
COURS
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NAME:
REG NO
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DAR
MZUM
R ES SALAA
FIN
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DR
IND
MB
KAI
2210
MBE UNIVE
AM CAMP
NANCE FOR
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KIPESHA
DIVIDUAL T
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IJAGE KIRO
050270/T.14
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PUS COLL
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TERM PAPE
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4
LEGE
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nt (1900hrs--2200hrs)

2. i
Abstract
The purpose of this term paper is to analyse how the social economic factors such as level of
education, income etc affects investors participation in the capital market. There after point
out the impact the capital market gets due to lack of participation of these investors.
Data has been collected through interview and questionnaires to the selected sample space
which comprises 20 respondents owning shares in companies listed at Dar es Salaam Stock
Exchange. Then the data has been analysed qualitatively and the result to be relates with the
low development of Tanzania capital market.
The results of the research are in detail explained in results chapter, but from the sample
space involved 50% by 50% comprised of male and female with 25.00% of males in the age
of 31-40 while 17.86% of female are in the range of 26-30 and 31-40

3. ii
Contents
Abstract....................................................................................................................................................i
List of Tables .......................................................................................................................................... iii
Introduction ............................................................................................................................................1
Literature Review....................................................................................................................................2
Capital Market.....................................................................................................................................2
Money Market ....................................................................................................................................2
Nature of Capital Market ....................................................................................................................3
Primary Market...............................................................................................................................4
Secondary Market...........................................................................................................................4
Products in secondary market ........................................................................................................4
Importance Of Capital Market............................................................................................................5
Social Economic Factors affecting investors and their decision in Capital Market Participation.......6
Education Level...............................................................................................................................6
Level of income...............................................................................................................................6
Awareness /Technology..................................................................................................................6
Other factors includes (but not limited);........................................................................................6
Methodology...........................................................................................................................................8
Qualitative...........................................................................................................................................8
Quantitative ........................................................................................................................................9
Mixed Methods.................................................................................................................................10
Variables Used ..............................................................................................................................10
Sampling Design............................................................................................................................11
Measurement and scaling techniques..........................................................................................11
Methods of data collection...........................................................................................................13
Processing and analysis of data ....................................................................................................14
Conclusion.............................................................................................................................................16
Related Study........................................................................................................................................21
Bibliography ..........................................................................................................................................22

4. iii
List of Tables
Table 1 : Scales Used in Measuring Attitudes.......................................................................................12
Table 2 : Likert Score Assignment.........................................................................................................13
Table 3 : Education Level Vs Knowing Listed Companies.....................................................................15
Table 4:Gender versus owning shares..................................................................................................15
Table 5:Gender and Age .......................................................................................................................16
Table 6:Level of education and Employment Type...............................................................................16
Table 7:Income Level ............................................................................................................................17
Table 8: Capital Market and Dar es Salaam Stock Exchange awareness .............................................17
Table 9:DSE operation and DSE Participants .......................................................................................18
Table 10 :Capital Market Related Terminologies..................................................................................18
Table 11: Listed Companies and Number of shares .............................................................................19
Table 12 : Physically visiting DSE vs Visiting DSE Website ...................................................................20

5. 1
Introduction
There many factors which contribute to the low development of Tanzania capital market
which can be classified or grouped into different groups. Among the key constraint for the
low development is low participation of Tanzania citizens in the capital market as a result of
different factors.
This study is intended to investigate how this low development of Tanzania Capital Market is
affected by low participation of investors who are the key stake holders in the Capital Market.
The study has conducted analysis of different indigenous and evaluation their knowledge on
Capital Market.
The analysis reveals that factors like Education level ,level of income ,Dependants , ,Age
group highly affect investors in terms of knowledge and awareness ,ability to invest as a
result those companies in the capital market needing capital they can’t grow /invest and this
in general contributes to low development of the country in all sectors be education ,banking
,manufacturing ,or any service industry and hence impact on country economy.
The study is very important as there are many companies which require capital to invest to
provide better services, make profit and hence pay tax and contribute to country economy.
Once these factors are known it is very important to take necessary actions especially in
providing more knowledge to most people at all age groups so that they can see the
importance of investing money in Capital Market products.
In Tanzania there are few listed companies under Dar Es Salaam Stock Exchange, this could
also be a factor hindering investors to put in their money. It is for this reason DSE is
encouraging more companies to comply with necessary standards so that they can be listed at
DSE. Recently DSE has been encouraging Telecom companies to list themselves since they
make lot of profit yet they need a lot of capital and they are investors in public willing to
invest.

6. 2
Literature Review
Capital Market
It refers to a market for Long Term Capital. It involves all the facilities and institutional
arrangements for borrowing and lending Long Term Capital. That is, it is the market for
buying and selling long term financial instruments.
Capital market could also be defined as a market for securities (debt or equity), where
business enterprises and government can raise long-term funds. In capital market money is
provided for periods longer than a year, as the raising of short-term funds takes place on other
markets (e.g., the money market)
Money Market
It is a market for short term (up to one year) money and financial assets that are near
substitutes for money (Convertible in to cash with minimum transaction cost)
Difference between Capital Market and Money Market
Difference and demarcation between money market and capital market is made on the basis
of maturity period of instruments and claims. Short-term instruments maturing within a
period of one year are traded in money market whereas the capital market deals with longer
maturity financial assets and claims.
Though both types of markets facilitate the transfer of funds from savers to deficit-users, still
the difference between the two is maintained with reference to the time-period covered by the
transactions. Capital market includes trading in securities, mutual fund units and government
debt instruments. On the other hand’ money market facilitates dealings in short-term financial
instruments such as inter-corporate deposits, certificate of deposits, treasury bonds,
commercial papers, commercial bills, etc.

7. 3
 Money The subject matter of capital market is long-term financial instruments having
maturity of more than one year. On the other hand, the thrust of MM is on short-term
instruments only.
 Money market is a wholesale market and the participants in money market are large
institutional investors, commercial banks, mutual funds, and corporate bodies.
However, in case of capital market even a small individual investor can deal by
sale/purchase of shares, debentures or mutual fund units.
 In capital market, the two common segments are primary market and secondary
market. Both these segments are interrelated. Securities emerge in primary segment
and their subsequent dealings take place in secondary market. However, in case of
money market, there is no such sub-division in general. In efficient money market,
secondary market transactions may also take place.
 Total volume of trade occurs per day in money market is many fold that of the volume
per day taking place in capital market.
 In capital market, the financial instruments being dealt with are shares (equity as well
as preference), debentures (a large variety), public sector bonds and units of mutual
funds. On the other hand, money market has different financial instruments such as
treasury bills, commercial papers, call money, certificate of deposits, etc.
Nature of Capital Market
The nature of capital market is brought out by the following facts:
 It Has Two Segments
 It Deals In Long-Term Securities
 It Performs Trade-off Function
 It Creates Dispersion In Business Ownership
 It Helps In Capital Formation
 It Helps In Creating Liquidity
There are two types of capital market:
 Primary market,
 Secondary market

8. 4
Primary Market
Primary market is a market for raising fresh capital in the form of shares and debentures.
It allows for the formation of capital in the country and the accelerated industrial and
economic development.
Public limited companies that are desirous of raising capital funds through the issue of
securities approach this market.
The Public limited and government companies are the issuers and individuals, institutions
and mutual funds are the investors in this market.
Secondary Market
 The secondary market is that market in which the buying and selling of the previously
issued securities is done.
 The transactions of the secondary market are generally done through the medium of
stock exchange.
 The chief purpose of the secondary market is to create liquidity in securities.
Difference between Primary and secondary market
Primary
 In primary markets, securities are bought by way of public issue directly from the
company.
 New issue are available in primary market.
 The primary is a middlemen.
 New issue of common stock;bonds and preferred stock are sold by companies
Secondary
 In Secondary market share are traded between two investors.
 Securities usually bought and sold through the secondary market.
 The secondary market is broker and dealer.
 The secondary market stock and bonds issues are sold to the public.
Products in secondary market
 Equity shares
 Government securities.
 Bonds.

9. 5
Importance Of Capital Market
 It plays a vital role in mobilizing savings and channelizing them in to productive
investments for the development of trade, commerce and industries. (i.e. The Capital
Market helps in Capital Formation and economic development of the country)
 It provides incentives to savers in the form of interest/dividend and transfer funds to
investor.
 It provides a market mechanism for those who have savings and to those who need
funds for productive investments. Such an arrangement helps the capital market to
divert resources from wasteful and unproductive channels to productive investments.
 It deals in ordinary shares, stocks, debentures, and bonds of corporation and securities
of the Government.
 The funds which flow into the capital market come from savers.
 Various institutions such as banks, development banks give quantitative and
qualitative direction to the flow funds and bring rational allocation of resources. This
is done by converting financial assets in to productive physical assets. This results in
the development of business.
 Capital market is the source from which long term capital is raised for the setting up
and sustained growth of companies.
 It readily provides money for new/existing ventures.
 It also helps investors to trade in their shares and maintain the liquidity of
investments.
 It provides ready and continuous market for securities.
 It integrates the demand and supply of securities in an effective manner and
determines the price for securities every now and then.

10. 6
Social Economic Factors affecting investors and their decision in Capital
Market Participation
There are many factors that affect investors’ participation in Capital market. Most of these
factors are social economic factors as explained below;
Education Level
It is very evident that education level has in impact on investor’s participation in Capital
Market. This is due to the fact that as you study further there is a deep knowledge on
Investment related information including Capital Market and Shares. From research results it
could be seen those who participate mostly are Degree, masters’ holders.
Level of income
Level of income highly influences investors’ participation in Investment related activities.
Level of income is related to savings and investment budget. Most people with low income
have no interest (or not aware) on Capital Market related activities hence their participation is
almost not there regardless of their level of education.
Awareness /Technology
Awareness on Capital Market activities has an impact on Capital Market Participation.
Awareness comes in different forms, level of technology/computer literate of an investor
(browsing), Capital Market advertisement (DSE) etc. From research results some investors
of reasonable income and education they are not aware of Dar Es Salaam Stock Exchange.
Other factors includes (but not limited);
 Risk Tolerance: Risk refers to the volatility of portfolio’s value. The amount of risk
the investor is willing to take on is an extremely important factor.
 Return Needs: This refers to whether the investor needs to emphasize growth or
income.
 Investment Horizon: The time horizon starts when the investment portfolio is
implemented and ends when the investor will need to take the money out.
 Tax Exposure: Investors in higher tax brackets prefer such investments where the
return is tax exempt, others will have no such preference.
 Market Trends: Need to understand how various asset classes have performed in the
past before planning for finances.

11. 7
 Investment Needs: How much money an investor needs at the time of maturity?
 Risk Coverage: A type of insurance coverage that can exclude only risks that have
been specifically outlined in the contract.
 Dependents: People who relies on another person, especially a family member, for
financial support.
More factors are included and analysed in the results session of this paper.

12. 8
Methodology
As with any process, one of the most important steps in carrying out a successful evaluation
is choosing the right way to go about doing it. If the study's design is well suited to the
questions being considered, the whole process will be made considerably easier.
Each methodology represents a different approach to evaluation. The fact that there are so
many approaches in common use simply reflects the fact that no single methodology is 'the
best'.
There are 3 main types of research methodologies1
;
• Qualitative research
• Quantitative research
• Mixed research
Qualitative
Qualitative research is research dealing with phenomena that are difficult or impossible to
quantify mathematically, such as beliefs, meanings, attributes, and symbols
Qualitative research seeks to explore a specific phenomenon, not prove a prediction,
according to "Qualitative Research Methods: A Data Collector's Field Guide," published by
Family Health International. Often used in the social sciences and education, qualitative
methodologies use interviews, focus groups and observations to collect data. Qualitative
methods provide rich, contextual explorations of the topic that are often personally or
culturally meaningful.
Advantages
• It enables more complex aspects of a person’s experience to be studied
• Fewer restriction or assumptions are placed on the data to be collected.
• Not everything can be quantified, or quantified easily, Individuals can be studied in
more depth
• Good for exploratory research and hypothesis generation
• The participants are able to provide data in their own words and in their own way
1
There are other methods such as basic research, correlational research ,descriptive research ,ethnographic
research, experimental research ,exploratory research

13. 9
Disadvantages
• It is more difficult to determine the validity and reliability of linguistic data
• There is more subjectivity involved in analysing the data.
• “Data overload” – open-ended questions can sometimes create lots of data, which can
take a long time to analyse!
• Time consuming
Quantitative
Quantitative research refers to the systematic empirical investigation of any phenomena via
statistical, mathematical or computational techniques. The objective of quantitative research
is to develop and employ mathematical models, theories and/or hypotheses pertaining to
phenomena
Quantitative research is more objective than qualitative methods. In this type of methodology,
the researcher crafts a hypothesis and then tests it through structured means. Instead of
exploring or describing phenomena, quantitative methods deal with facts and statistics.
Quantitative research is generally made using scientific methods, which can include:
• The generation of models, theories and hypotheses
• The development of instruments and methods for measurement
• Experimental control and manipulation of variables
• Collection of empirical data
• Modelling and analysis of data
• Evaluation of results
Advantages
• Quantitative research allows the researcher to measure and analyse data.
• The researcher is more objective about the findings of the research.
• Quantitative research can be used to test hypotheses in experiments because of its
ability to measure data using statistics.
Disadvantages
• The main disadvantage of quantitative research is the context of the study or
experiment is ignored.
• Quantitative research does not study things in a natural setting or discuss the meaning
things have for different people.
• A large sample of the population must be studied for more accurate results

14. 10
Mixed Methods
Mixed methods combine qualitative and quantitative research. This type of methodology uses
several different measures that include both contextual understanding like interviews or
observations along with facts or statistics
Methodology used
In this research I have used Quantitative approach since the hypothesis is available and states
“There are many factors which contribute to the low development of Tanzania capital market
which can be classified or grouped into different groups. Among the key constraint for the
low development is low participation of Tanzania citizens in the capital market as a result of
different factors “
From the fact above nature of the survey and advantages over the other, quantitative research
approach has been selected for this paper.
In this chapter I will go through;
 Variables used
 Sampling design
 Measurement and scaling techniques
 Methods of data collection
 Processing and analysis of data
Variables Used
Variables used in this research can be categorized in
 Demographic
o Gender
o Age
o Marital status
o Level of education
o Employment Type
 Knowledge and understanding of Capital Market
o Capital Market Awareness
o Awareness of Dar es Salaam Stock Exchange
o DSE operation
o DSE Participants

15. 11
o DSE Products
o DSE Listed Companies
o Capital Market Related Terminologies
 Investing in Capital Market
o Number of shares
o Level of education vs Investment
o Gender vs Investment
Sampling Design
A sample design is a definite plan for obtaining a sample from a given population. The
following points have been considered in sampling
• Type of Universe: This is defining set of objects to be used in sampling. In this case
finite universe. (number of items is certain,)
• Sampling Unit: Respondents participating in the capital market by owning shares ,
Masters Students, co-workers or any other respondents
• Sampling list: Respondents participating in the capital market by owning shares ,
Masters Students, co-workers or any other respondents
• Size of sample: 30 respondents, 20 must be participating in capital market.
Measurement and scaling techniques
Measurement is a process of mapping aspects of a domain onto other aspects of a range
according to some rule of correspondence. In measuring, a form of scale in the range (in
terms of set theory, range may refer to some set) and then transform or map the properties of
objects from the domain (in terms of set theory, domain may refer to some other set) onto this
scale (categorical data to numerical data)
Scaling technique
The itemized rating scale (also known as numerical scale) presents a series of statements
from which a respondent selects one as best reflecting his evaluation. These statements are
ordered progressively in terms of more or less of some property.

16. 12
For example;
Are you aware of the term capital Market?
poor/not at all/not aware at all/do not know 1
low /little awareness/low knowledge/low usage 2
moderate awareness/moderate knowledge/moderate usage 3
high awareness/ high knowledge, high usage 4
Excellent knowledge/ Excellent awareness/highest usage 5
Scales used in Measuring Attitudes of people
The following scales are used in measuring attitudes of people towards different options;
Name of the scale construction approach Name of the scale developed
Arbitrary approach Arbitrary scales
Consensus scale approach Differential scales (such as Thurstone
Differential scale)
Item analysis approach Summated scales (such as Likert Scale)
Cumulative scale approach Cumulative scales (such as Guttman’s
Scalogram)
Factor analysis approach Factor scales (such as Osgood’s Semantic
Differential, Multi-dimensional Scaling, etc.)
Table 1 : Scales Used in Measuring Attitudes
In this research for Item analysis I have used Summated Scares (Likert-Type Scale)
Summated Scales (or Likert-type Scales)
Summated scales (or Likert-type scales) are developed by utilizing the item analysis approach
wherein a particular item is evaluated on the basis of how well it discriminates between those
persons whose total score is high and those whose score is low. Those items or statements
that best meet this sort of discrimination test are included in the final instrument.
Thus, summated scales consist of a number of statements which express either a favorable or
unfavorable attitude towards the given object to which the respondent is asked to react. The
respondent indicates his agreement or disagreement with each statement in the instrument.
Each response is given a numerical score, indicating its favorableness or unfavourableness,
and the scores are totaled to measure the respondent’s attitude. In other words, the overall
score represents the respondent’s position on the continuum of favourable-unfavourableness
towards an issue.

17. 13
Developing Likert Type Scale;
1. There are 11 statements which are relevant to the attitude ebing studies and each of
the statements expresses definite awareness or being not aware.
2. Trial test was done to 4 respondents with shares and 4 without shares.
3. The response to these statements were scored in such a way that a response indicative
of the most favourable attitude is given the highest score of 5 and that with the most
unfavourable attitude is given the lowest score of 1.
No P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 TOTAL
1 5 5 5 5 5 5 5 5 5 5 5 55
2 4 4 4 3 3 3 5 5 4 4 3 42
3 5 5 5 5 5 5 5 5 5 5 5 55
4 4 3 3 3 3 3 3 3 3 3 3 34
5 3 3 3 3 3 3 3 3 3 3 4 34
6 2 2 1 2 1 1 1 1 1 1 1 14
7 1 1 1 1 1 1 1 1 1 1 10
8 3 4 2 3 4 4 4 3 3 3 2 35
Table 2 : Likert Score Assignment
4. Arranging the scores per statement (2/2 ) revealed that those questions were relevant
and would yield appropriate response
Methods of data collection
This study involves primary data collection. The primary data are those which are collected
afresh and for the first time, and thus happen to be original in character.
Methods used in collecting data for this survey are;
• Interview method and
• Through questionnaires
Interview
I have managed to interview 2 respondents who have shares and 3 without shares.
For the shareholders it was a personal interview (face to face), I sampled some questions and
some were ad hoc questions based on answers that I got. The most successful interview I did
with one of DSE member who was able to share a lot about the context am researching;
• Was able to get more information on Capital Market Participation

18. 14
• Challenges that Capital Market is facing
o Not enough capital
o Few companies are listed
o Risk is very high
• Dar es Salaam Stock Exchange Operations
Questionnaires
26 questionnaires were distributed among different stakeholders, 18 owning shares and 8 not
owning shares majority being masters’ students, undergraduates and businessmen/women.
The questionnaires method is chosen because of several advantages it has over most popular
data collection methods;
• Low cost
• Free from the bias of the interviewer as respondents are choosing themselves answers
• Enough time for respondents to read thoroughly well and provide adequate answers
• Easy to email and respondent can resent filled form via email etc
Processing and analysis of data
Processing implies editing, coding, classification and tabulation of collected data so that they
are open to analysis. The term analysis refers to the computation of certain measures along
with searching for patterns of relationship that exist among data-groups. Thus, “in the process
of analysis, relationships or differences supporting or conflicting with original or new
hypotheses are subjected to statistical tests of significance to determine with what validity
data can be said to indicate any conclusions”.
Data collected is then fed into excel sheet edited ,coded , and classified according to
different groups like gender ,age etc with other counterpart variables like number of shares
,knowledge of Capital market etc.
Measures of central tendency
From results obtained;
Mean values are computed using the following formula;
Mean=
∑
Where n = sample size and i ith item

19. 15
For Example;
Education level versus Knowing Listed companies
Count of Respondents Column Labels
Row Labels 1 2 3 4 5 Grand Total
Advanced diploma or first degree 1 1 4 1 3 10
Diploma 1 1 2
Masters 1 4 5 10
PhD 1 1 1 3
Professor 1 1
Secondary education (Form four and Six) 2 2
Grand Total 4 1 6 7 10 28
Table 3 : Education Level Vs Knowing Listed Companies
It can be computed; in all education levels average of 1.25 respondents have poor/not at
all/not aware at all/do not know while average of 2.5 people have Excellent knowledge/
Excellent awareness/highest usage
Similarly
Gender versus owning shares
Count of Respondents Column Labels
Row Labels NO YES Grand Total
Female 4 10 14
Male 3 11 14
Grand Total 7 21 28
Table 4:Gender versus owning shares
It can be computed an average of 10.5 respondents owned shares.

20. 16
Conclusion
The results of the survey are categorised into 3 groups
 Demographic
o Gender and Age
Count of Respondents Column Labels
Row Labels Female Male
Grand
Total
Between 15 – 25 3.6% 3.6% 7.1%
Between 26 – 30 17.9% 3.6% 21.4%
Between 31- 40 17.9% 25.0% 42.9%
Between 41 – 50 10.7% 7.1% 17.9%
Between 51- 60 0.0% 7.1% 7.1%
More than 60 0.0% 3.6% 3.6%
Grand Total 50.0% 50.0% 100.0%
Table 5:Gender and Age
50% of respondents comprised both gender with most respondents in the range of 42.9%.
o Level of education and Employment Type
Count of Respondents Column Labels
Row Labels
Employed in
private sector
Employed in
public sector
Not
employe
d
Self-
employe
d/busine
ss Grand Total
Advanced diploma or
first degree 25.0% 7.1% 0.0% 3.6% 35.7%
Diploma 0.0% 0.0% 0.0% 7.1% 7.1%
Masters 21.4% 14.3% 0.0% 0.0% 35.7%
PhD 7.1% 3.6% 0.0% 0.0% 10.7%
Professor 0.0% 3.6% 0.0% 0.0% 3.6%
Secondary education
(Form four and Six) 0.0% 0.0% 3.6% 3.6% 7.1%
Grand Total 53.6% 28.6% 3.6% 14.3% 100.0%
Table 6:Level of education and Employment Type
37.5% consisted of both diploma/advanced degree holders together with masters’ level
respondents. 3.6% comprised of professors

21. 17
o income Level
Row Labels
Count of
Respondents
Below 500,000 per month 3.6%
Between 1mil – 3mil per month 28.6%
Between 3mil – 5 mil per month 25.0%
Between 600,000 – 1,000,000 per month 17.9%
More than 5 Mil per month 21.4%
No Income 3.6%
Grand Total 100.0%
Table 7:Income Level
Out of 28 respondents 28.6% have income range between 1-3 mil per month, while 3.6%
have no income at all, mostly being students or dependants.
 Knowledge and understanding of Capital Market
o Capital Market and Dar es Salaam Stock Exchange awareness
Count of
Respondents Column Labels
Row Labels 1 2 3 4 5
Grand
Total
1 3.70% 0.00% 3.70% 0.00% 0.00% 7.41%
2 0.00% 7.41% 0.00% 0.00% 0.00% 7.41%
3 0.00% 0.00% 14.81% 11.11% 3.70% 29.63%
4 0.00% 0.00% 3.70% 22.22% 7.41% 33.33%
5 0.00% 0.00% 0.00% 0.00% 22.22% 22.22%
Grand Total 3.70% 7.41% 22.22% 33.33% 33.33% 100.00%
Table 8: Capital Market and Dar es Salaam Stock Exchange awareness
The Row represents Capital Market awareness while the columns present DSE Awareness;
The Numbers presents level of knowledge levels as indicated on the excel sheet data.
From the data 22.22% of the sample space has greater knowledge on Capital market and DSE
while 3.7% don’t know about Capital Market and DSE.
This means in every 28 people the Capital Market loses one potential investor to invest in the
capital market.

22. 18
o DSE operation and DSE Participants
Count of
Respondents Column Labels
Row Labels 1 2 3 4 5
Grand
Total
1 10.71% 0.00% 0.00% 0.00% 0.00% 10.71%
2 3.57% 3.57% 0.00% 0.00% 0.00% 7.14%
3 0.00% 0.00% 21.43% 7.14% 0.00% 28.57%
4 0.00% 0.00% 0.00% 14.29% 10.71% 25.00%
5 0.00% 0.00% 0.00% 10.71% 17.86% 28.57%
Grand Total 14.29% 3.57% 21.43% 32.14% 28.57% 100.00%
Table 9:DSE operation and DSE Participants
The Row represents DSE Operation awareness while the columns present DSE participants
Awareness;
The Numbers presents level of knowledge levels as indicated on the excel sheet data.
From the data 28.57% of the sample space has greater awareness on DSE operations and DSE
participants while 10.71% don’t know about DSE Operation and DSE participants.
This means in every 28 people the Capital Market loses 3 potential investors to invest in the
capital market because they don’t know how DSE operates.
o Capital Market Related Terminologies
Count of
Respondents Column Labels
Row Labels 1 2 3 4 5
Grand
Total
Bond 4.76% 4.76% 14.29% 52.38% 23.81% 100.00%
Earnings per share
(EPS) 4.76% 0.00% 23.81% 28.57% 42.86% 100.00%
Equity Turnover 4.76% 19.05% 19.05% 23.81% 33.33% 100.00%
Over-the-counter
(OTC) 14.29% 9.52% 19.05% 42.86% 14.29% 100.00%
Stock 4.76% 4.76% 19.05% 42.86% 28.57% 100.00%
Grand Total 6.67% 7.62% 19.05% 38.10% 28.57% 100.00%
Table 10 :Capital Market Related Terminologies
The Row represents Capital Market Terminologies awareness while the columns present
Knowledge level;
The Numbers presents level of knowledge levels as indicated on the excel sheet data.
From the data 28.57% of the sample space has greater awareness on CM related
terminologies at higher knowledge level while 4.76% have no idea of these terminologies.
This means in every 28 people the Capital Market loses at least potential investors to invest
in the capital market because they lack knowledge of important terminologies in capital

23. 19
market. These terminologies are important for an investor to be aware of. But normally in this
situation is an investor really needs to invest he/she can engage listed investor advisors such
as Orbit Securities Company Limited and others (refer to listed investment advisors at
www.dse.co.tz)
 Investing in Capital Market
o Listed Companies and Number of shares
Listed Companies
More than
20000
1-
1000
1001-
10000
10001-
20000
Grand
Total
CRDB Bank(CRDB) 4.76% 0.00% 1.59% 6.35% 12.70%
DCB Commercial Bank (DCB) 0.00% 0.00% 3.17% 1.59% 4.76%
Maendeleo Bank Plc(Maendeleo) 0.00% 0.00% 4.76% 0.00% 4.76%
Mkombozi Commercial Bank 0.00% 1.59% 6.35% 1.59% 9.52%
National Microfinance Bank(NMB) 1.59% 3.17% 4.76% 4.76% 14.29%
Precision Air Services Plc (PAL) 0.00% 3.17% 4.76% 0.00% 7.94%
Swala Gas and Oil 1.59% 3.17% 1.59% 0.00% 6.35%
Swissport Tanzania Ltd.(SWISSPORT) 0.00% 1.59% 3.17% 3.17% 7.94%
Tanga Cement Public Ltd
Co.(SIMBA) 4.76% 0.00% 1.59% 1.59% 7.94%
Tanzania Breweries Ltd.(TBL) 1.59% 0.00% 3.17% 1.59% 6.35%
Tanzania Cigarette Company.(TCC) 0.00% 0.00% 1.59% 1.59% 3.17%
Tanzania Portland Cement Co. Ltd.
(TWIGA) 1.59% 1.59% 3.17% 0.00% 6.35%
Tatepa Company Ltd.(TATEPA) 0.00% 4.76% 0.00% 0.00% 4.76%
TOL Gases Ltd. (TOL) 0.00% 0.00% 3.17% 0.00% 3.17%
Grand Total 15.87%
19.05
% 42.86% 22.22% 100.00%
Table 11: Listed Companies and Number of shares
From analysis majority of respondents own shares in NMB 14.29% followed by CRDB
12.70%. This is from the fact that these two banks when they were listed they were well
operating and according to financial analysts the risk was minimal for an investor to buy
shares, and by then shares was very cheap as compared to now.

24. 20
o Physically visiting DSE vs Visiting DSE Website
Count of
Respondents Column Labels
Row Labels
More than three
times a month
Not At
All
Once a
month
Three times
a month
Twice a
month
Grand
Total
More than three
times a month 10.71% 0.00% 0.00% 0.00% 0.00% 10.71%
Not At All 7.14% 17.86% 25.00% 0.00% 7.14% 57.14%
Once a month 7.14% 3.57% 10.71% 3.57% 3.57% 28.57%
Twice a month 0.00% 0.00% 0.00% 0.00% 3.57% 3.57%
Grand Total 25.00% 21.43% 35.71% 3.57% 14.29% 100.00%
Table 12 : Physically visiting DSE vs Visiting DSE Website
The Row represents physically visiting DSE offices while the columns presents visiting DSE
website;
From the data 10.71% if the sample space visit DSE office more than three times as well as
visit their website more than three times a month while 17.86% never gone or visited DSE at
all. This means investors out there they miss information regarding capital market investment
hence the market misses their participation. Number of reasons are related to this including
but not limited to computer literacy, owning shares, knowledge and interest etc

25. 21
Related Study
I have done comparison with two countries of which I have been able to see similar research
as the one I’m doing. The counties are Ghana and Uganda. The results are more less similarly
but I could see from Uganda sampling 28 respondents out of the research sample space ,more
people seems to be aware on Capital markets related terminologies and most of respondents
own shares . Similarly in Ghana results are almost the same as these ones.
In general I could see mail reason of investors not participating from general market large
percentage is due to lack of awareness ,education level and level of income. In this case the
government needs to put more emphasis from early level of secondary education studies
about shares, investment, securities bonds etc

26. 22
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