Banks, Digital Trading Powered DSE Best Performance in 2025  

Tanzanian investors on the Dar es Salaam Stock Exchange (DSE) generated an additional TZS 6.15 trillion in paper wealth in 2025. During the year under review, total market capitalisation grew by more than 34 per cent from TZS 17.8 trillion in the previous year to TZS 23.95 trillion in December 2025. This was the strongest valuation level in its history.   

The growth was driven primarily by price gains in the leading banking counters, including KCB Bank Group (cross-listed), CRDB Bank, and NMB Bank, with additional support from increased listed share prices following Tanga Cement Public Limited Company (TCCL) ‘s rights issue.  

The year’s performance followed a clear pattern: a steady rise through most months, a brief dip around Q3 & Q4 (September/October, during the general elections), and a strong rebound into December.  

The rebound was driven by improvements to trading rules, wider retail participation enabled by mobile platforms with real-time market depth, and stronger investor education through social media.   

By year-end, market leadership was concentrated in a small group of large names: eight counters finished above TZS 1 trillion in market value, six domestic (CRDB Bank, NMB Bank, Tanzania Breweries Ltd (TBL), Vodacom (VODA), Tanzania Portland Cement Public Limited Company (TPCC), Tanzania Cigarette Company Ltd (TCC), and two cross-listed (KCB, and East African Breweries Limited (EABL)).   

The DSE All Share Index rose 29.08 per cent to 2,761.93 in 2025, while the Tanzania Share Index gained 24.70 per cent to an all-time high of 5,759.41, reflecting broad strength across listed equities.  

Leaders came from banks, finance, and investments, with the BI Index up 88.46 per cent, to 10,900.19, on strong gains in CRDB Bank and NMD Bank, support from cross-listed banks, and improved performance in DSE Plc.   

Industrial and Allied and Commercial Services declined after the June 2025 trading rule reforms prompted price corrections and improved price discovery in previously illiquid large caps, notably TBL, TCC, and VODA.   

Momentum strengthened after the June 2025 trading reforms, with Volume Weighted Average Price (VWAP) closing prices and revised price caps improving liquidity and price discovery. This enabled fair-value repricing across heavyweights such as TBL, TCC, and Vodacom. Falling government bond yields also pushed investors from fixed income into equities, especially banks, where total returns exceeded 20 to 30 per cent.   

During the year, market liquidity improved, making it easier for investors to enter and exit. Additionally, the year’s rally was largely driven by retail. The DSE’s Mobile Trading Platform (MTP) enhanced market access, becoming a critical tool for financial inclusion and driving significant turnover.   

The platform recorded TZS 106.68 billion in turnover, equal to 47.16 per cent of regular market turnover excluding block trades, up 656.38 per cent year-on-year. Investor participation rose to 47,483 from 8,795, highlighting the rapid adoption of Hisa Kiganjani due to its convenience and accessibility.   

Trading activity more than doubled in 2025, with 477.81 million shares changing hands versus 277.99 million in 2024, a 109.57 per cent increase. Domestic volumes reached 452.50 million shares, up 98.47 per cent year-on-year. The volume contribution from MTP in 2025 was 22.92 million.   

During the year, MTP added 94,805 new investors, lifting total accounts to 139,971, up 309.90 per cent from 45,166 in 2024. New onboarding rose 248.41 per cent year-on-year. MTP now accounts for 18.89 per cent of all CDS accounts, up from 7.32 per cent in 2024, reflecting effective awareness campaigns and a steadily improving user experience across mobile and desktop.   

A total of 123,547 new CDS accounts were opened, bringing the total number of unique CDS accounts to 740,639 by year-end, a 20.01 per cent increase from the 2024 base of 617,092 accounts. This represents a remarkable 316.28 per cent year-over-year increase in new account openings, compared with just 29,679 in 2024. 40.33 per cent of all new investors fall within the 21 – 30 age bracket, signalling a younger, digitally native generation entering the capital markets.   

Banking Sector Strength  

Analysts attribute the bank’s growth to increased economic activity, which elevated transaction volumes and credit demand, and to manageable non-performing loans (about 3.5 per cent), which decreased provisioning requirements and enhanced profitability. Smaller banks are also experiencing significant gains.  

Additionally, the Bank of Tanzania (BoT) Annual Report 2024/25 indicates that the banking sector remained well-capitalised, liquid, and profitable even amid global financial tightening and domestic structural challenges.  

The sector’s strength coincided with real GDP growth accelerating from 5.1 per cent to 5.5 per cent, while inflation remained at 3.1 per cent. Crucially, banks supported this growth through significant private sector credit expansion, indicating that financial intermediation did not merely stay stable but actively contributed to economic momentum.   

Investment Outlook  

The DSE is well-positioned for sustained growth. The successful launch of new products like Exchange Traded Funds (ETFs) and Sukuk (Shariah-compliant Islamic bonds) in 2025, combined with the exponential growth of its digital trading platform, provides a strong foundation for future expansion.   

The exchange’s focus on investor education and market accessibility is expected to continue driving participation and liquidity in the Tanzanian capital markets.