NBC calls for wider Tanzanian participation in capital markets

DAR ES SALAAM: NBC is calling for greater Tanzanian participation in capital markets, arguing that digital financial services are making investment opportunities more accessible to ordinary citizens.

The message emerged during a webinar hosted by NBC in Dar es Salaam, yesterday to explain how banking services and digital platforms can connect individuals with capital market investments directly online.

NBC Managing Director Theobald Sabi said banks should increasingly serve as gateways to investment and financial education, rather than remaining focused mainly on savings and borrowing.

He said technology was enabling banks to connect customers with capital market products across different income groups. “This is why, as a bank, we are investing more in systems that enable our customers to participate in capital market investments. A bank is now more than a place to save and borrow; it is also an important link to financial education and services that provide access to capital and stock markets,” Sabi said.

NBC Kiganjani, integrated with DSE Kiganjani, provides customers with digital access to investment opportunities. Platforms operated by UTT and iTrust have also been integrated, with additional services being considered. Sabi urged Tanzanians with surplus funds to consider investments such as shares and government securities, while encouraging wider use of formal financial services.

DSE Chief Executive Officer Peter Nalitolela said technology had simplified capital market participation by allowing individuals to access investment services through mobile phones and receive guidance through bank branches. He said Tanzania had approximately 900,000 capital market investors, leaving substantial room for participation given the population exceeds 70 million.

Nalitolela also challenged the perception that investing requires substantial capital. “I continue to encourage citizens not to view investment as something that requires millions of shillings. Anyone can start with a small amount, including 5,000/- or 20,000/-, depending on the investment product and its requirements,” he said. This expands the potential investor base beyond high-income groups.

CPA Alfred Mkombo, CMSA Director of Research, Policy and Planning, said the authority was strengthening market oversight, investor protection and access to adequate information before investment decisions.

He advised investors to diversify across options such as government securities, collective investment schemes, property and housing, and fixed-term bank deposits, depending on their objectives and risk considerations.

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Mkombo said stronger financial education was necessary to help investors understand both opportunities and risks. This is important as wider participation brings greater responsibility for investors to assess products, understand conditions and avoid concentrating funds in a single investment. Access alone does not remove the need for informed decisions or appropriate risk management.

Bank of Tanzania Director of Financial Markets Emmanuel Akaro said the central bank was implementing reforms to widen participation by domestic and foreign investors.

He said significant financial resources remained outside productive economic activity, creating a need to mobilise funds into investments including government securities, banks and collective investment schemes.

Akaro said changes introduced in July had further opened the capital account, allowing foreign investors, including Tanzanians living abroad, to participate in the government securities market. The reforms also create opportunities for Tanzanians in the diaspora to invest in government bonds, including where their children do not hold Tanzanian citizenship.

NBC Director of Compliance and Regulatory Affairs Sarah Laizer Sumaye said the webinar was part of the bank’s financial education programme, bringing together NBC, DSE, CMSA and BoT experts to explain how customers can use banking services to access investment opportunities.

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“We will not stop at savings and loans. We want to provide our customers with a range of opportunities, including sustainable investment opportunities,” Sumaye said.

She said NBC would continue financial education through its Compliance Advocacy Program, covering capital markets alongside Environmental, Social and Governance issues, Data Privacy and Business Ethics. The broader objective is to improve understanding of financial services while exposing customers to opportunities beyond traditional savings and lending. For Tanzania, expanding digital access, financial education and investment products could help channel more household and institutional funds into productive economic activities.