Tanzanian insurance firms now to raise capital through Dar stock exchange

Dar es Salaam. Tanzanian insurance companies will soon be able to raise capital through the Dar es Salaam Stock Exchange (DSE) following the signing of a landmark Memorandum of Understanding (MoU) between the Tanzania Insurance Regulatory Authority (TIRA) and the DSE, in what is seen as a major step towards enhancing the financial resilience of the country’s insurance sector.

Signed on July 31, 2025, in Dar es Salaam, the agreement signals a deliberate convergence of Tanzania’s insurance and capital markets sectors.

It paves the way for the development of innovative financial instruments, including the potential listing of insurance securities, and opens new avenues for insurers to access long-term funding, bolster operational transparency, and reinforce consumer confidence.

The Commissioner for Insurance, Dr Baghayo Saqware, described the partnership as both strategic and transformative, aimed at unlocking growth opportunities for insurers while safeguarding the interests of policyholders.

He said the partnership is strategic as it will expand capital access for insurance firms via the stock exchange, while also improving regulatory oversight and operational transparency.

“TIRA believes that the success of the insurance sector is intrinsically linked to the strength of capital markets. Together, we can build a more inclusive, resilient, and beneficial financial system for all Tanzanians,” Dr Saqware said.

The agreement is part of broader efforts by the government to promote inclusive financial services and expand insurance penetration across the country.

One of the pivotal milestones in this journey was the introduction of the Insurance (Bancassurance) Regulations, 2019, by TIRA on May 16, 2019.

These regulations enabled banks and financial institutions to partner with licensed insurers to market and distribute insurance products, effectively transforming banks into ‘bancassurance agents.’

Additionally, the government’s 2025/26 budget included targeted tax reforms to support the sector.

Notably, the Minister for Finance, Dr Mwigulu Nchemba, announced the exemption of Value Added Tax (VAT) on reinsurance transactions between insurance and reinsurance companies.

The measure is intended to enhance the competitiveness of local firms, deepen the use of insurance products to manage unforeseen risks, and boost the overall contribution of insurance to national development.

Insurance growth

Although insurance coverage in Tanzania has recorded modest gains over the years, a significant portion of the population remains outside the formal insurance system.

Industry stakeholders attribute this gap to a combination of low awareness, limited access to tailored products, and affordability challenges.

Nonetheless, the country’s insurance market posted strong growth in 2024, buoyed by the entry of new players and an expanding array of insurance solutions.

According to an unaudited report by the Association of Tanzania Insurers (ATI), Gross Premium Written (GPW) rose to Sh1.47 trillion in 2024, up from Sh1.24 trillion the previous year, representing an annual growth rate of 19.11 percent.

TIRA has identified capital limitations as one of the key constraints hindering the sector’s expansion.

As such, the MoU is designed to facilitate greater collaboration between regulators and market institutions, while introducing mechanisms for the listing of insurance-related financial products on the DSE.

It also establishes frameworks for joint research initiatives, improved financial data sharing, and the professional development of institutional staff.

Equally, the partnership is expected to contribute to enhanced public financial literacy, encourage uptake of insurance services, and promote a deeper understanding of capital markets among Tanzanians.

DSE Chief Executive Officer, Mr Peter Nalitolela, welcomed the agreement as a decisive move to integrate two essential pillars of the national financial architecture—insurance and capital markets.

“This MoU represents a strategic vision to synchronise the development of the insurance industry and capital markets. It will serve as a blueprint for how our two sectors can collaborate to deepen financial inclusion, enhance transparency, and accelerate economic transformation in line with the Tanzania Development Vision 2050,” Mr Nalitolela remarked.

He further noted that the collaboration would stimulate investor confidence and provide insurance firms with alternative routes to secure capital in a manner that aligns with international best practices.

He underscored the importance of building a competitive and diversified financial ecosystem capable of supporting sustained economic growth and community development.

Public engagement

As part of the agreement, the two institutions will co-organise high-level stakeholder engagements and public forums designed to enhance sectoral dialogue and promote risk literacy among the public.

These initiatives will also help to foster the adoption of prudent financial reporting and risk management standards within the insurance and capital markets industries.

This MoU follows a series of reforms aimed at broadening insurance access and ensuring the sector’s alignment with the national financial inclusion agenda.