2025: A turning point for Tanzania’s capital market

DAR ES SALAAM: SOMETHING extraordinary happened in Tanzania’s capital market in 2025 and if you blinked, you might have missed the scale of it.

Quietly but powerfully, hundreds of thousands of Tanzanians made a decisive move toward wealth creation, confidence in formal markets and long-term financial inclusion. The numbers are not just impressive; they are transformative.

They tell a story of trust regained, innovation rewarded and a market that finally found its momentum. According to the Dar es Salaam Stock Exchange (DSE) Market Performance Report for 2025, a remarkable 123,547 new Central Depository System (CDS) accounts were opened within a single year.

This pushed the total number of unique CDS accounts to 740,639 by the end of 2025, representing a 20.01 per cent increase from the 2024 base of 617,092 accounts.

Even more striking is the growth rate: Compared to 2024, when only 29,679 new accounts were opened, 2025 recorded a staggering 316.28 per cent increase in new investor on boarding. This achievement is not accidental.

It is the result of deliberate strategy, consistent market education, product innovation and growing public confidence in the capital market as a legitimate pathway to financial security.

Simply put, the system worked and worked exceptionally well. One of the most encouraging signals from the data is who these new investors are.

The majority of new CDS accounts, 40.33 per cent, were opened by Tanzanians aged 21 to 30 years.

This is a powerful endorsement from the youth, a demographic often perceived as disengaged from long-term investing.

Instead, 2025 proved the opposite: Young people are not only interested in investing, but they are also actively participating when the right conditions are created.

This youth-led surge reflects years of focused financial literacy campaigns, the use of digital platforms to simplify account opening and messaging that speaks the language of a new generation, accessibility, transparency and opportunity.

It also confirms that when capital markets are made relatable and inclusive, young people respond decisively.

Another major factor behind this success was product innovation, most notably the introduction of the Vertex Exchange Traded Fund (VertexETF), the first ETF to be listed on the Dar es Salaam Stock Exchange.

The launch of the VertexETF marked a milestone in Tanzania’s financial history, expanding the menu of investment products available to the public.

ETFs are globally recognised for their simplicity, diversification benefits and suitability for both new and seasoned investors.

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By introducing the VertexETF, the market addressed a long-standing gap: Providing an easy-to-understand, costefficient investment vehicle that lowers entry barriers.

The result was predictable and positive. Investors responded with enthusiasm, reinforcing the idea that innovation, when aligned with market needs, multiplies impact.

Beyond the numbers, 2025 demonstrated the power of coordination across the capital market ecosystem.

Regulators, the exchange, brokers, product developers and market educators moved in the same direction. Investor awareness initiatives were not treated as side projects but as core growth drivers.

Technology was embraced, not feared. Processes were simplified, not complicated. Trust was built through consistency. This is where the strategy of multiplying what works becomes critical.

The evidence is clear: When investor education is intensified, participation grows. When products are simplified and diversified, confidence increases.

When youth are deliberately targeted, the future of the market is secured. The task ahead is not to reinvent the wheel, but to scale these winning strategies, geographically, demographically and technologically.

If similar efforts are extended to underserved regions, informal sector participants and even younger age brackets, the growth witnessed in 2025 could become the new normal rather than an exception. Equally important is sustaining momentum.

Rapid growth brings new responsibilities: Strengthening investor protection, maintaining market integrity and ensuring that first time investors enjoy positive experiences that turn participation into habit.

As Tanzania reflects on this historic milestone, one thing is undeniable: 2025 was not just a good year, it was a turning point.

The capital market proved its relevance, resilience and readiness to support national development through broad-based participation.

And so, the message going forward is simple yet powerful: This success must not be admired, it must be multiplied.

By doing more of what worked in 2025, Tanzania’s capital market can move from growth to greatness, from inclusion to empowerment and from promise to lasting prosperity.