CSDR charts technology path as investors soar

DAR ES SALAAM: THE CSD and Registry Company (CSDR) has set its sights on leveraging technology to consolidate rapid growth in country’s capital markets, positioning digital innovation at the centre of efforts to widen investor participation and enhance market efficiency.

The renewed push comes as the number of investors registered in the central depository system significantly increased to 2.1 million at the end of last year, doubled the previous 1.0 million recorded since the establishment of the market in 2024.

The CSDR Chief Executive Officer Mr Benitho Kyando said the sharp increase in investor accounts signals a new phase for the capital market that requires robust, secure and efficient digital infrastructure to sustain momentum.

“Our key focus is on how we can use technology to enhance representation and participation of individual investors in the stock and bond markets and strengthening our systems to accommodate the recent surge of investors who have been flocking to the market,” Mr Kyando said on Wednesday during the CSDR Investor Forum for this year.

CSDR, a bank of investors securities for listed and non listed companies, is wholly owned by the Dar es Salaam Stock Exchange Plc (DSE).

This year’s forum dubbed ‘shaping the future, mission possible with digital investment’ brought together various capital markets stakeholders including and young investors, gathering to deliberate on the future development of the stock market.

During the event, discussions focused specifically on how the use of technology can be harnessed to expand representation and enhance the participation of individual investors in the country’s equity and bond markets.

The technology push comes at a time when country’s capital markets are witnessing notable increase in traded shares.

According to the CSDR latest data, the total value of shares traded at the end of February this year stood at 400bn/- surpassing the last year’s 600m/- for the entire year, a signal of heightened market activity and liquidity.

Analysts attribute this growth largely to sustained financial literacy campaigns and increased public awareness of investment opportunities in equities and government securities.

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Mr Edmund Munyagi, a Certified Financial Educator (CFE) said platforms such as the CSDR forum are critical in deepening the market by strengthening collaboration and improving investor knowledge.

He said that despite the initiative, there is still a need to intensify financial literacy efforts to attract more people into investment, noting that the current number of investors remains low compared to the country’s total population.

“There is a significant increase in participation. However, when compared to the overall population, the number of investors is still relatively small, which shows there is ample room for expansion,” he noted.

Beyond domestic participation, stakeholders are also eyeing the Tanzanian diaspora as a strategic source of long-term capital. Financial and Investment Business Advisor Mr Emilian Busara said establishing clear and enabling frameworks for diaspora participation could unlock substantial inflows.

“Many Tanzanians living abroad have considerable financial capacity. If the market can effectively channel those funds, it will significantly increase capital available for productive investment and economic growth,” he said.

With investor appetite rising and digital systems under review, the CSDR’s technology-driven strategy signals a deliberate shift towards a more inclusive, resilient and scalable capital market, positioning it to support Tanzania’s broader industrialisation and economic transformation agenda.