Tanzania market update

The Tanzanian market has experienced mixed movements this week, with the Tanzanian Share Index dipping by 0.01 per cent, while the Dar es Salaam Stock Exchange All Share Index rose by 0.4 per cent. Brighton Ross Kinemo, Head of Training & Data Sales at the Dar es Salaam Stock Exchange, sheds light on the current market trends and economic outlook. The Dar es Salaam Stock Exchange (DSEI) has seen significant growth in February 2025 compared to the previous year, driven by various factors. One key factor contributing to this growth is the adoption of the mobile trading platform, which has transformed the way trading is conducted. The turnover for the mobile trading platform has been on the rise, reaching 5.4 billion shillings, with a notable increase in new accounts being opened. The market still sees a dominance of male traders over females, with the age group of 20 to 29 contributing significantly to trading activities. Additionally, the banking and financial sector have shown strong performance, with banks like CRDB and NMB Bank posting impressive profits and stock price increases. External factors, such as economic growth projections, have also influenced market movements, with Tanzania's economy expected to expand by 6% in 2025. This growth is driven by sectors like agriculture, manufacturing, tourism, and construction, bolstering investor confidence and trading activities in the capital markets. Despite external factors like geopolitical situations and developments in the US, Tanzania's economy remains resilient. Initiatives by the Tanzanian government to control inflation and support economic growth are in place to mitigate any potential impacts from external factors. Looking ahead, the Monetary Policy Committee is expected to maintain the central bank rate at 6% for the first quarter of 2025, with a possible increase of 50 basis points in the second quarter. Challenges in the consumer market, such as high living costs and interest rates, are being monitored closely to ensure stability. With massive infrastructure investments and increased investor interest in Tanzania, more companies are expected to list on the stock exchange. President Samia Suluhu's initiatives aim to encourage state-owned enterprises to raise capital through the exchange. The stock exchange is also exploring new listings and potential diaspora bonds in the coming quarters. Data sales are becoming increasingly crucial, with the stock exchange focusing on expanding its data services to cater to more clients and tap into untapped market segments. Initiatives like providing free data to media outlets and joining international data associations aim to boost data sales revenue and enhance market participation.