Embracing a new era: a vision for the future at the DSE

DAR ES SALAAM: THE newly appointed CEO of the Dar es Salaam Stock Exchange (DSE), Mr Peter Nalitolela has swiftly set a progressive course for revitalising the country’s capital market landscape.

Since his tenure began on August 1, 2024, Mr Nalitolela has embarked on an ambitious journey to tackle the pivotal challenges of liquidity and market efficiency that have long constrained the exchange.

He detailed these challenges in his first-ever engagement with Tanzanians and the international community during an online webinar.

This event, titled “Leveraging Technology to Unlock Investment Potential and Value in the DSE,” was organised by Vertex International Securities as part of its flagship online education platform, The Vertex Investment Talk Series, on September 7, 2024.

With strategic plans already set in motion, Tanzanians can expect a series of innovations aimed at enhancing the
operational dynamics of the DSE.

Under Mr Nalitolela’s leadership, the DSE is poised to undergo significant transformations, particularly in the realms of technological advancement and regulatory adjustments.

Recognising the challenges of inclusivity and liquidity—highlighted by the fact that only about six hundred thousand CDS accounts exist among over sixty million Tanzanians—Mr Nalitolela has committed to allocating
more resources towards public awareness campaigns.

These initiatives aim to educate and engage both institutional and retail investors across Tanzania, leveraging modern digital platforms such as mobile apps and social media to foster a broader investment culture.
One of the key technological undertakings is the enhancement of the Hisa Kiganjani App.

This initiative aims to integrate banking and mobile network operator services to facilitate easier and more inclusive payment options, including provisions for international investors to transact using intermediary services such as VISA and MasterCard.

This move not only promises to streamline transaction processes and attract foreign investment, potentially boosting the market’s liquidity, but also builds on the momentum from 2023, when the market saw a total of 225.2bn/- in equity turnover and 3.9tri/- in turnover on the fixed income market.

Understanding the necessity of supportive infrastructure, Mr Nalitolela plans to cultivate strategic partnerships with Mobile Network Operators (MNOs) and banks. These collaborations aim to extend the reach and impact of the DSE, making capital market investments more accessible to the Tanzanian populace.

Additionally, Mr Nalitolela is advocating for a regulatory overhaul to remove outdated rules that currently hinder market efficiency. This includes dialogues with government bodies and the Capital Markets and Securities Authority (CMSA) to refine policies that will accommodate innovative products and the accompanying technologies.

Supporting these initiatives is Vertex International Securities, led by CEO Mr Mateja Mgeta. Vertex has consistently been at the forefront of introducing not only innovative products but also incorporating technology to enhance its financial literacy and investment awareness initiatives.

Alongside these efforts, Vertex is finalising its new mobile system, the Vertex Uwekezaji App, which, according to Mr Mgeta, is in the final testing stages. Vertex’s approach aligns seamlessly with DSE’s objectives, focusing on creating sophisticated, yet user-friendly platforms that empower investors with real-time data and learning tools.

This collaboration is expected to catalyse a more vibrant and dynamic market environment, thereby enhancing the appeal of the DSE to a global audience.

Amid these technological and strategic advancements, the significance of education and personal growth in investing cannot be overstated.

Prominent author and certified life coach, Mr Joel Nanauka, emphasises the importance of mindset shifts and personal development in nurturing a new generation of savvy investors.

His insights into overcoming psychological barriers and applying life coaching principles to build sustainable wealth are crucial, particularly for engaging and
empowering youth and women in Tanzania.

Mr Nanauka advocates for personal financial improvement through technology, especially among the youth, aligning with the DSE’s mission to democratise investment knowledge via digital platforms.

By enhancing the accessibility of financial education, the DSE aims to equip young Tanzanians with the tools necessary to make informed investment decisions, potentially transforming them into key players in the capital markets.

As Tanzanians anticipate these transformative endeavors, the synergy between the DSE, the CMSA, the government and other stakeholders promises a robust framework for capital market advancements. These collective efforts are focused not only on enhancing market operations but also on establishing a sustainable foundation for future generations.

With Mr Nalitolela at the helm, supported by key industry players and educational advocates, Tanzania’s capital market is on a promising path toward growth and inclusivity.

The emphasis on technological integration, coupled with a robust educational framework, positions the DSE to significantly enhance Tanzania’s economic landscape, ushering in a new era of investment opportunities for government entities, the Tanzanian public and foreign investors.