Investors’ paper wealth on the Dar es Salaam Stock Exchange (DSE) has expanded by 4.2 trillion/- over the last 12 months, driven by the growth of share prices for both local and cross-listed companies.

This reflects heightened investor confidence and favorable market and economic conditions.

The market report highlights that the major expansion was recorded by cross-listed counters, including East African Breweries Limited (EABL), KCB, and JHL, which accounted for at least 65 percent of the increase, while local counters contributed about 35 percent.

The DSE’s total market capitalization grew to 18.5trn/- at the end of January 2025, compared to 14.3trn/- at the end of January 2024. 

Investors on locally listed equities saw their wealth expand by 1.2trn/- during the period, as domestic market capitalization rose to 12.5trn/- from 11.3trn/-.

These trends also boosted the All Share Index (DSEI) to 2,218.96 points, up from 1,723.85 points. The Tanzania Share Index (TSI), which measures the performance of locally listed companies, closed at 4,743.38 points, up from 4,294.07 points.

A key driver of this performance was the Banks, Finance, and Investment sector, whose index increased by 30 percent to 6,164.62 points from 4,540.11 points in January 2024. 

CRDB Bank’s stock price rose from 460/- to 700/- over the year, reflecting strong financial performance and robust demand for its shares. 

Similarly, KCB Bank’s share price surged from 350/- to 820/- due to its strong regional presence and solid financial results across East Africa.

Earlier reports show that the DSE recorded a 22.23 percent growth in 2024, placing it among Africa's top-performing stock markets. 

It outperformed several larger markets, including South Africa (9.37 percent), Mauritius (14.75 percent), and Namibia (10.28 percent), showing steady progress in both local and USD terms.

DSE Chief Executive Officer Peter Nalitolela attributed the growth to sustained investor trust, the expansion of the digital share trading platform (MTP), and improved macroeconomic stability in Tanzania. 

“The remarkable growth reflects sustained investor confidence and the strong performance of listed companies, underscoring the resilience and attractiveness of our capital market,” Nalitolela explained.

According to Statista, the market capitalization in Tanzania's stock market is projected to reach USD 6.51 billion in 2025, with the number of trades expected to hit 1.25 million. “The Tanzanian stock market is witnessing increasing investor interest as the government promotes economic diversification and infrastructure development initiatives,” Statista noted.

Speaking with CNBC last month, Imani Muhingo, Senior Manager of Securities Brokerage Services at CRDB Bank Plc, highlighted that Tanzania is setting the stage for a transformative year in 2025 with recently published guidelines on reporting sustainability-related risks and opportunities for banks and financial institutions. 

Muhingo emphasized the significance of ESG (Environmental, Social, and Governance) factors in the banking industry and the overall market landscape in Tanzania.

Meanwhile, the equity market recorded a total turnover of 28bn/- during the first month of the current quarter, nearly half of the total turnover recorded during the first three months of last year. The DSE market report shows that local investors dominated both share buying and selling activities.

Foreign investors sold shares valued at 13.3bn/-, equivalent to 47.51 percent of the total value of shares sold, and bought shares worth 1.9bn/- or 6.81 percent of the total value of shares bought. This translated into a net outflow of 11.4bn/-.

Total market capitalization closed at 18.5 trillion/-, a slight increase from 17.8trn/- recorded at the start of the year, driven by appreciating share prices among local and foreign counters. 

The domestic market capitalization also grew, closing at 12.5trn/- from 12.2trn/-, driven by rising share prices among banking and investment counters.