Tanzania’s Capital Markets flourish under President Samia’s four years of noble leadership

Her Excellency Dr. Samia Sulu­hu Hassan, President of the Unit­ed Republic of Tanzania, has set a remarkable legacy of excellence in capital market development during her four years in office. Commenting on the remarkable performance, the Chief Executive Officer of the Capi­tal Markets and Securities Authority (CMSA), CPA. Nicodemus Mkama, underscored that favorable policy, regulatory, and operational environ­ment fostered and supported by the Government under the noble lead­ership of Her Excellency Dr. Samia have driven substantial flourishment in the capital markets.

CPA. Mkama also highlighted that, economic diplomacy and inter­national relations initiatives being implemented by Her Excellency Samia have attracted increased participation of local and foreign investors, resulting into significant achievements.

Robust, sound and resilient capital market sector

Despite the challenges posed by global upheavals caused by geopolit­ical tensions and uncertainties, Tan­zania’s capital markets demonstrat­ed remarkable resilience, record­ing 79.4% increase in total value of investment to Sh 52.3 trillion as on 28th February 2025, compared to Sh 29.1 trillion as on 28th February 2021.

Combined trading turnover of equities and bonds on the stock exchange surged by 78.1%, reaching Sh 25.8 trillion for the period end­ing 28th February 2025, compared to Sh 14.5 trillion in 2021. In addi­tion, the Net Asset Value of Collective Investment Schemes experienced a momentous 454.6% growth, soaring to Sh 2.8 trillion as at 28th February 2025, compared to Sh 500.3 billion in 2021.

Tanzania on record of seven pioneering innovative capital markets products

CMSA has been at the fore in steer­ing the development of innovative sustainable capital market products that have facilitated the successful issuance of seven pioneering the­matic innovative products attracting local and foreign investors. Issu­ance of these products is part of the implementation of the Government’s Alternative Project Financing (APF) Strategy launched by Honorable Dr. Mwigulu Nchemba, Minister for Finance of the United Republic of Tanzania. The strategy aims at pro­viding alternative avenues of financ­ing public and private sector develop­ment projects.

These products include; first exchange listed green bond with big ticket size in Sub Saharan Africa, first subnational water infrastructure green revenue bond in Africa, first gender bond in Sub Saharan Africa, first multi-currency social bond in Africa, first listed corporate Sukuk Bond in Sub Saharan Africa and first Sukuk Bond issued by a Secondary School in Sub Saharan Africa.

First infrastructure bond for boosting road network in rural and urban areas

The Tanzanian capital market has also celebrated issuance of a 5-year Infrastructure Bond dubbed “Samia Infrastructure Bond” raising Sh 323.09 billion, a success of 215.4 per­cent.

The objective of this is to support local contractors working with Tan­zania Rural and Urban Roads Agency (TARURA) to effectively implement various road projects within urban and rural areas across the country. The bond is listed on the Dar es Salaam Stock Exchange and rein­forces President Samia’s commit­ment to enhancing road infrastruc­ture in both rural and urban areas.

Momentous strides in collec­tive investment schemes

CPA. Mkama also pointed out that, over the past four years, Tanzania’s Collective Investment Schemes (CISs) segment experienced remark­able growth, with the introduction of new diversified Collective Invest­ment Schemes.

The schemes provide a range of demand driven customer centric products, with an upbeat of 454.6% growth of Net Asset Value reaching Sh 2.8 trillion. The schemes ulti­mately invest in treasury bonds, list­ed corporate bonds, listed equities, Shariah-compliant products, and money market instruments, making the market liquid and vibrant.

The schemes include; five collec­tive investment schemes namely, iGrowth Fund; iCash Fund; iSave Fund, iIncome Fund and Imaan Fund, operated by iTrust Finance Limited, two collective investment schemes namely, Sanlam Pesa Mon­ey Market Fund and Sanlam USD Fixed Income Fund, operated by Sanlam Investments East Africa Limited (SIEAL).

Two Collective Investment Schemes namely, Orbit Money Mar­ket Fund (Inuka Fund) and Orbit Index Fund (DSE Dozen Fund), operated by Orbit Securities Com­pany Limited.

A Collective Investment Scheme named “Faida Fund” operated by Watumishi Housing Investments (WHI).

A Collective Investment Schemes, named “Timiza Fund”, operated by Zan Securities Limited.

A Collective Investment Scheme, named “Juhudi Fund”, operated by UTT AMIS Plc.

Ethical Sharia Compliant Collec­tive Investment Scheme, dubbed “Alpha Halal Fund”, operated by Global Alpha Capital Limited.

Technology-driven solutions spurs access to capital markets

CPA. Mkama further added that, CMSA facilitated the development of technology- driven mechanisms for subscriptions and trading of securities in the capital markets. The initiatives resulted in the introduc­tion of Hisa Kiganjani, Sim Invest, Wekeza WHI and M-Wekeza as the pioneering mobile applications for subscription and trading of securi­ties.

In addition, the newly introduced CISs in the market have adopted the use of digital platforms that facili­tate easier access and onboarding of investors irrespective of their loca­tion. This initiative has increased public access to capital market services, which is one of the key pillars enshrined in the Third National Financial Inclusion Framework.

Internationally Recog­nized Capital Market Inter­mediaries

CPA. Mkama also pointed out that during the four years period of Her Excellency Dr. Samia in the office, CMSA implement­ed initia­tives that led to increase in cer­tified cap­ital market professionals recognized internationally; increase in licensed market intermediaries and launch­ing of Continuous Professional Development (CPD) Program. The initiatives resulted into:

Increase in internationally rec­ognized capital market profes­sionals by 82.8%

As part of the initiatives to increase the number of certified market pro­fessionals recognized internation­ally, CMSA collaborates with the Chartered Institute for Securities and Investment (CISI), United King­dom to conduct the Securities Indus­try Certification Courses (SICCs) in Tanzania. Market professionals cer­tified under the SICCs are globally recognized and eligible to apply for licenses in Tanzania, across the East African region and internationally.

The number of certified capital market professionals under this pro­gramme has increased by 82.8 percent to 903 during the period ended 28th February 2025 compared to 494 dur­ing the period ended 28th February 2021.

Licensed market intermediar­ies up by 60.4%

Implementation of SICC has increased the number of licensed market intermediaries by 60.4 per­cent to 231 during the period ended 28th February 2025 from 144 dur­ing the period ended 28th February 2021. The increase in the number of market intermediaries serves to increase public access to financial services which is one of the key pil­lars enshrined in the Third National Financial Inclusion Framework.

Introduction of the Continuous Professional Development (CPD) Programme

In enhancing capacity of market professionals, CMSA introduced the Continuous Professional Devel­opment (CPD) Programme for market professionals to maintain their pro­fessional standards, meet regulatory requirements and keep abreast with global developments in the securi­ties industry. This initiative is part of implementation of the objective of the Financial Sector Development Master Plan (FSDMP) 2020/21–2029/30 that calls for enhancement of human capacity in the financial sector.

Remarkable milestones in pro­moting financial inclusion

The capital market sector has made commendable strides in pro­moting financial inclusion. The widespread adoption of mobile trad­ing platforms has leveled the playing field, granting investors from various backgrounds greater opportunities to engage in capital markets.

In addition, collaborations among industry stakeholders, such as com­mercial banks, mobile money opera­tors and Postal Corporation, forming partnerships with the exchange, bro­kerage and fund management com­panies have further extended market outreach to previously underserved communities. To compliment these initiatives, CMSA implemented various tailor-made awareness pro­grams on the opportunities and ben­efits available in the capital markets. The programs implemented include:

Capital markets awareness programs

CMSA has conducted capital mar­kets awareness programs to various targeted groups including, youth of different calibres; women’s groups; entrepreneurs; policy makers; mem­bers of the parliament; public and private institutions; social groups; and people with special needs. This endeavour contributes to attain­ment of the objective set under the Financial Sector Development Mas­ter Plan (FSDMP) 2020/21-2029/30 on raising public awareness on finan­cial matters.

Participation in exhibitions and crowd pulling events

CMSA has been participating in various exhibitions and crowd pull­ing events including, Dar es Salaam International Trade Fair (SabaSa­ba); National Agricultural Show (Nane Nane exhibitions); National Economic Empowerment Council (NEEC) Exhibitions; Zanzibar Inter­national Trade Fair; and commemo­ration of National Financial Services Week and World Investors Week. This initiative is aligned with the Government aspiration of reaching out to the public for dissemination of education and feedback mecha­nisms.

Capital Markets Universities and Higher Learning Institutions Challenge (CMUHLIC)

CMUHLIC is a competition for students in universities and higher learning institutions whose objective is to enhance financial inclusion and literacy by testing knowledge and understanding on issues related to capital markets. The Challenge has attracted over 88,871 participants during the period ending 28th Feb­ruary 2025, recording an increase of 82.6 percent compared to the par­ticipation of 48,662 recorded dur­ing the period ending 28th February 2021.

Positive outcomes of the challenge include creation of over 10,000 actu­al investors in shares of companies listed on the DSE; development of the Young Investors Forum with more than 6,000 members, whose objective is to provide financial liter­acy and experiences for the youth in subscription and trading of shares. This is part of Government’s com­mitment to youth empowerment on financial matters.

Enabling and supportive regu­latory environment

CPA. Mkama also pointed out that in creating an enabling regulatory environment, CMSA implemented the following: Issued Guidelines for Corporate and Subnational Sukuk bonds to facilitate issuance of Shari­ah compliant products;

Issued Guidelines for Invest­ment-based Crowd funding to pro­mote access to capital for startup, small and medium enterprises through digital platform; and

Facilitated the amendment of the Capital Markets and Securities (CMS) Act, Cap 79 of the Laws of Tanzania by including a provision for Protection of Minority Shareholders of listed companies. The amended Act enhances good corporate gov­ernance practices by providing opportunity for minority sharehold­ers to have representation in the Board of Directors.

Conclusion

In his concluding remarks, CPA. Mkama affirmed Tanzanian Capital Market Sector is robust, sound and resilient with increased participa­tion of domestic and foreign inves­tors and that the CMSA will continue to pursue initiatives that contribute to fueling development of compet­itive economy for human develop­ment.

CPA. Mkama wishes Her Excel­lency President Dr. Samia Suluhu Hassan the grace of good health and success in her endeavors in bringing economic growth and social develop­ment in the Country.