DSE’s 40.6tri/- milestone raises growth ambitions

DAR ES SALAAM: WHAT if the next chapter of Tanzania’s economic growth is already being written on the Dar es Salaam Stock Exchange? The numbers are increasingly telling that story.

By the end of last week, total market capitalisation at the Dar es Salaam Stock Exchange (DSE) had reached 40.6tri/-, marking a historic milestone for Tanzania’s capital market and demonstrating growing investor confidence in the market.

The latest level represents an increase of about 69 per cent from the market capitalisation of approximately 23.995tri/- recorded at the end of December 2025.

Beyond being an impressive number, this growth signals a market that is becoming deeper, more visible and increasingly relevant to the country’s broader financial system. Several factors have contributed to this development.

Among them is the important work undertaken by the Capital Markets and Securities Authority (CMSA), as the market regulator, together with the DSE and other key market participants, including stockbrokers, investment advisers, fund managers, certified financial educators and other stakeholders.

Their combined efforts have helped create an environment where investors can access information, investment products and market services more efficiently.

Market development is rarely the result of one institution; it is normally the outcome of different players moving in the same direction. However, one factor deserves particular attention: Technology.

The increasing use of technology in investment processes has significantly changed how investors interact with the capital market.

Digital platforms are making it easier for investors to open accounts, access market information, place orders, monitor investments and participate in the market without relying entirely on physical processes.

This convenience matters because liquidity follows participation. When more investors can access the market easily and execute transactions efficiently, trading activity can increase.

Greater participation and liquidity can, in turn, support more efficient price discovery, allowing market prices to better reflect the supply and demand for securities. The progress therefore demonstrates that technology should not be viewed simply as an operational tool.

It is becoming an important part of market-development infrastructure. Nevertheless, as we celebrate the 40.6tri/- milestone, the industry should also ask a more strategic question: Where will the next trillion shillings of market capitalisation come from?

Growth in market capitalisation should ideally be accompanied by growth in the number and diversity of companies listed on the exchange.

A rising market driven mainly by increases in the value of existing listed companies is positive, but a stronger and more sustainable capital market also needs a continuous pipeline of new issuers.

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New listings can provide investors with more choices while giving Tanzanian businesses an additional avenue for raising longterm capital.

They can also broaden ownership, improve corporate governance and strengthen the connection between the capital market and the productive sectors of the economy.

This is therefore the right time for stakeholders to develop a coordinated new-listing strategy. Regulators, the exchange, intermediaries, government institutions and the private sector should work together to identify and prepare companies with the potential to access public capital.

The 40.6tri/- milestone should not be viewed as the destination. It should be viewed as evidence of what is possible when regulation, innovation, technology and market participation move in the same direction.

The next ambition should be to build a capital market that is not only larger, but also deeper, more liquid, more diversified and capable of financing Tanzania’s long-term economic transformation.

The real measure of success will ultimately be whether more Tanzanian businesses can raise capital through the market and whether more citizens can participate meaningfully in the wealth created through that growth.

A bigger market is encouraging. A broader and deeper market that finances more businesses, mobilises more domestic savings and creates more investment opportunities for Tanzanians would be transformational.

The ambition should now move beyond simply increasing market capitalisation to building a market capable of financing the real economy, supporting businesses to expand, creating jobs, encouraging innovation and giving citizens a greater opportunity to participate in the wealth generated by economic growth.

The next chapter of Tanzania’s capital market should therefore be about depth, diversity and inclusion: More companies listing, more investment products becoming available, more investors participating and technology making that participation easier and more affordable.

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