Tanzania’s capital markets show robust growth amid strong bond and unit trust activity

Dar es Salaam. Tanzania’s capital markets demonstrated a strong performance as of August 2025, with the sector continuing to serve as a vital mechanism for diversified financing and investment opportunities, underpinning the country’s economic growth trajectory.

The total market capitalisation at the Dar es Salaam Stock Exchange (DSE) stood at Sh22,297.75 billion as of 20 August 2025, buoyed by robust performances in banking and industrial sector counters, according to an analysis by the TCB Bank.

The recent establishment of the Capital Markets Tribunal in 2025 has further strengthened market integrity by providing a formal dispute resolution mechanism, enhancing investor confidence and fostering a stable environment for programmes such as the TCB Medium-Term Note (MTN) Programme.

Corporate bond issuances have emerged as a prominent feature of the market, particularly those linked to developmental projects.

In 2024, banks raised Sh386.3 billion through public corporate bond issuances, while 2025 witnessed the Samia Infrastructure Bond, through which CRDB Bank mobilised Sh313 billion, marking the largest public bond issuance in Tanzania to date.

The strong performance of these instruments highlights a significant investor appetite for bonds associated with tangible economic outcomes.

Unit trust schemes have also seen growing popularity, supported by digital platforms and financial inclusion initiatives.

In 2024, new funds were launched, including Sanlam Pesa, Inuka, Alpha Halal Fund, Timiza Fund, and iTrust’s five funds, iCash, iSave, iIncome, iGrowth, and Imaan Fund.

These investment vehicles continue to channel excess income towards productive segments of the economy, further stimulating market activity.

In addition, the DSE’s revised 2025 trading rules have aligned operations with international standards, improving market liquidity, transparency, and settlement efficiency.

Together with the rising demand for corporate bonds and increased participation in unit trusts, these developments create a robust framework for Tanzania’s bond market, attracting both domestic and international investors to a liquid, competitive, and well-regulated financial environment.