DSE among Africa’s top equity performers

DAR ES SALAAM: TANZANIA’S equities market is among Africa’s stronger performers in this year, with the Dar es Salaam Stock Exchange (DSE) All Share Index posting a year-to-date gain of 41.9 per cent in local currency terms.

The rally, according to African Market weekly performance report, remains solid even after adjusting for currency movements, translating to returns of 33.17 per cent in US dollar terms and 34.65 per cent in euros, placing the market in the upper tier of continental performers.

The gains reflect sustained demand for listed counters alongside improving investor confidence, with the index climbing to 3,919.27 points by the end of April. The report shows that the performance puts DSE ahead of several regional peers on a currency-adjusted basis, despite tighter global financial conditions.

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Across the continent, Ghana leads in local currency terms, where the GSE Composite Index has surged 72.52 per cent year-to-date.

The rally remains broad-based even in foreign currency terms, with returns of about 61 per cent in both US dollar and euro terms, underscoring strong domestic momentum and currency support. Nigeria follows with robust gains, as the NGX All Share Index is up 55.69 per cent in local currency. Currency effects amplify returns for foreign investors, lifting gains to over 63 per cent in US dollar terms and 64.05 per cent in euros, making it one of the most attractive markets on a risk-adjusted basis so far this year.

Southern Africa presents a more mixed picture. Botswana has recorded modest growth of 0.92 per cent in local terms, but negative returns of 2.47 per cent in US dollars, reflecting currency pressures.

South Africa, the continent’s most developed market, shows a slight contraction, with the JSE All Share Index down 0.56 per cent year-to-date in local currency and deeper declines when measured in foreign currencies.

In East Africa, performance diverges. Kenya has gained 10.05 per cent in local terms, supported by gradual recovery in equities, while Rwanda and Uganda have posted moderate increases of 5.81 per cent and 19.98 per cent respectively.

Currency adjustments narrow some of these gains but keep returns positive. Elsewhere, Zimbabwe has delivered strong returns of 31.42 per cent in local currency, rising further to 34.74 per cent in US dollar terms. Zambia presents a different profile, with modest local gains of 3.08 per cent but significantly higher foreign currency returns exceeding 20 per cent, indicating exchange rate tailwinds.

North African markets show varied outcomes. Egypt has advanced 23.74 per cent in local terms, though currency depreciation reduces gains to about 10.6 per cent in US dollars. Morocco and Tunisia diverge, with Morocco posting slight declines while Tunisia maintains solid growth of around 19 per cent across currencies.

At the lower end, Malawi and Mauritius remain under pressure, recording negative returns across both local and foreign currency measures, pointing to persistent domestic and currency-related constraints.

The overall pattern shows that while local currency gains across African markets remain widespread, exchange rate movements continue to shape investor outcomes. Markets such as Tanzania, Nigeria and Ghana stand out for maintaining strong performance even after currency adjustments, reinforcing their position as key destinations for portfolio flows in this year.