‘Digital platforms to stimulate capital markets’

DAR ES SALAAM: LEVERAGING digital platforms and technologies can streamline trading processes, reduce transaction costs and improve capital markets transparency.

Revealing that in Dar es Salaam yesterday, Research and Analytics Manager, Vertex International Securities Limited, Beatus Mlingi further said the technology role in enhancing efficiency and accessibility of the capital markets are among the key issues highlighted in the 2024/25 budget.

“One of the key technological initiatives is the development of an integrated trading platform that will enable seamless trading of securities, including government bonds, corporate bonds and equities,” he added.

He noted that by providing a centralised and userfriendly trading platform, the government aims to attract a broader range of investors and enhance market liquidity.

Furthermore, the budget emphasised the importance of cybersecurity and data protection. As the capital market becomes increasingly digitised, ensuring the security and integrity of trading systems is of paramount importance.

The government plans to invest in robust cybersecurity measures, including advanced encryption technologies, realtime monitoring systems and incident response protocols.

Also, in line with global trends, the 2024/25 budget focuses on promoting green and sustainable finance.

Recognising the importance of environmental sustainability, the government plans to issue green bonds to finance projects that have a positive environmental impact.

These projects include renewable energy, energy efficiency, sustainable agriculture and climate resilience initiatives.

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He said green bonds offer several benefits namely providing investors with an opportunity to align their investments with their environmental values and promoting responsible investing.

Additionally, he said green bonds can attract a new class of investors, including those who prioritise environmental sustainability, thereby broadening the investor base.

To promote the issuance of green bonds, the government plans to develop a comprehensive framework for green finance.

This includes establishing clear guidelines for the issuance and certification of green bonds, enhancing transparency and disclosure requirements and providing incentives for green investments.

Green bonds are a type of fixed-income investment used to fund projects with a positive environmental impact.

Like traditional bonds, green bonds offer investors a stated return and a promise to use the proceeds to finance or refinance sustainable projects, either in part or whole.

Investors around the world are seeking ways to both safeguard their financial interests and contribute to a sustainable future.

At the same time, much greater investment is needed to address global challenges including climate change, biodiversity loss, and poverty.

Green bonds offer investors an opportunity to finance projects that help the private sector address climate change through climate-smart investments and innovative financing in emerging markets