Value of local firms drives Dar es Salaam stock market growth

The movement was driven by rising stock prices for major local firms such as CRDB Bank, NMB Bank, and Swissport, according to him.

"When cross-listed companies like KCB and EABL are included, the market's total value jumped by 22.3 percent to Sh17.87 trillion," said Mr Nalitolela.

He attributed the growth to strong performance in domestic stocks and significant contributions from cross-listed companies.

Read: Regulatory dilemma: Where are telecom listings on DSE?

The trading turnover increased by 1.52 percent to Sh228.64 billion, he said, adding that excluding a one-off transaction worth Sh106 billion on the Tanga Cement (TCCL) counter in 2023, the turnover for 2024 increased by 91.5 percent compared to the previous year.

A total of 228 million shares were traded, marking a 21.28 percent rise from 188 million shares in 2023.

Mr Nalitolela credited this growth to enhanced mobile trading platforms, increased participation by both local and foreign investors, and the strong performance of listed companies.

The Tanzania Share Index (TSI) which measures the performance of the local companies on the bourse, rose by 7.3 percent, reaching 4,618.78 points from 4,304.4 points in 2023.

The All Share Index (DSEI) saw even more substantial growth, surging by 22.22 percent to 2,139.73 points from 1,750.63 points.

“These results reflect the strong performance of domestic companies and cross-listed firms like KCB, EABL, and Jubilee Holdings Limited, which boosted market-wide confidence and investor attractiveness,” he said.

Bond market slows

Despite the positive performance in the equity market, the bond market shrank by 13.6 percent in 2024.

Mr Nalitolela attributed the decline to investor preference for newly issued government bonds, which left the secondary market less active.

The DSE’s Hisa Kiganjani mobile trading platform recorded a breakthrough year, attracting nearly 23,000 new users—a 397 percent increase from the previous year.

Trading through the platform grew six fold, reaching Sh14.56 billion, with CRDB Bank dominating activity, accounting for over 80 percent of the total.

Challenges in new listings

However, 2024 saw no new companies joined the stock exchange, and only one corporate bond—issued by Tanga UWASA—was introduced, compared to three in 2023.

Looking ahead

Speaking to The Citizen, economists say the growth of the stock market testifies that the quality of the economy was improving.

Prof Jehovaness Aikaeli from the UDSM School of Economics said that awareness was now increasing about the stock market.

“Our DSE is small, unlike those of developed countries, where people have historically learned how to invest their money. In the past, there was limited awareness of what investing meant.

“People were not as informed about how investing capital in various ongoing businesses could make them partial owners based on their investment, allowing them to earn profits,” Aikaeli explained further.

Prof Aikaeli said that this shows that there is growing awareness and economic development.

“For instance, in countries with advanced economies, investment through stock markets often brings higher returns. Overall, this indicates that the economy is growing, and financial literacy is improving, which is very important,” he said

Prof Aikaeli believes that for the economy to grow, people should understand about alternative ways to invest in financial markets.

“If we continue to progress with this momentum, it means we will move even further ahead,” he shared.

On the other hand, economic analyst, Dr Balozi Morwa shared that if people indeed buy shares both locally and internationally, there will be a visible implication on the country's tax income.

“If small-scale traders are still being heavily pursued to pay taxes, then we are yet to see how these companies buying shares are providing any relief,” he shared.

He further added that one of the main goals of the DSE is to encourage the purchase of shares in companies, thereby easing the tax burden.

“If ordinary taxpayers are still being heavily taxed, then these markets will play a role in providing relief,” he said.