Capital markets new investors quadruple

TANZANIA: THE number of new investors in the country’s capital markets has quadrupled in just one year, driven by the adoption of the Mobile Trading Platform (MTP), according to a new report by Vertex International Securities (VIS) Ltd.

The 2024 Capital Markets Review report reveals that new investors surged to 22,774 by December last year, up from approximately 5,700 in the corresponding period of 2023. Individual investors accounted for 89 per cent of these new participants.

Presenting the report, VIS Manager of Research and Analytics, Mr Beatus Mlingi, stated that mobile trading platforms have significantly enhanced retail investors’ access to capital markets.

“This digital evolution has paved the way for future investors and broader participation,” Mr Mlingi explained.

The report indicates that the MTP contributed 24.44 per cent of equity turnover while improving user experience.

The Dar es Salaam Stock Exchange (DSE) experienced robust growth last year, driven by technological advancements and diversified financial products. Key trends included increased liquidity, improved investor confidence and policy-driven changes.

“Milestones in 2024 reflect a supportive regulatory environment, demonstrating how innovative products can drive capital-related strategies,” he said.

Capital Markets and Securities Authority (CMSA), Chief Executive Officer, Mr Nicodemus Mkama, highlighted significant growth and transformation in Tanzania’s capital markets sector in 2024.

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He attributed this progress to the introduction of innovative financial products, advancements in information and communication technology (ICT), including mobilebased trading and enhanced public awareness initiatives as well as friendly environment brought about by country’s policies.

“These developments have led to increased investment value in capital markets, greater liquidity in the stock exchange and strengthened confidence among both local and international investors. These achievements are a result of a supportive policy, legal and operational framework established by the government through CMSA,” Mr Mkama stated.

Efforts in year under review led to a 24.7 per cent increase in investment value in the capital markets, reaching 46.7tri/- by December last year, up from 37.4tri/- in December 2023.

The year also saw the introduction of new and innovative financial products that attracted both local and international investors.

Notably, the Green Bond issued by the Tanga Urban Water Supply and Sanitation Authority (Tanga-UWASA) raised 54.72bn/-, surpassing the target of 53.2bn/-, achieving a success rate of 103 per cent.

Similarly, the Samia Infrastructure Bond issued by CRDB Bank raised 323.09bn/-, exceeding its target of 150bn/- an impressive 215.4 per cent success rate.

The funds raised will facilitate local contractors working with the Tanzania Rural and Urban Roads Agency (TARURA) in implementing road infrastructure projects across rural and urban areas, he said.

The VIS Chief Executive Officer, Mr Mateja Mgeta, pointed out that the sector made substantial progress in product registration as financial institutions introduced new investment instruments.

Technological advancements have played a pivotal role in transforming the investment landscape, with the widespread adoption of digital platforms increasing investor engagement and boosting financial inclusion.