By Business Insider Reporter
Africa’s stock exchanges remain small, thinly traded, and less vibrant compared to global peers – and the Dar es Salaam Stock Exchange (DSE) reflects that reality sharply.
A recent Organisation for Economic Co-operation and Development (OECD) capital markets review shows that Africa hosted roughly 1,141 listed companies by the end of 2024, out of nearly 44,000 globally, representing barely five percent of emerging-market listings worldwide.
Yet, the continent’s equity story is deeply uneven.
South Africa stands miles ahead, accounting for about 60 percent of Africa’s total market capitalisation, with deeper liquidity, strong institutional participation, and a steady pipeline of listings.
By contrast, exchanges such as Tanzania’s remain relatively small, with slow trading activity and prolonged dry spells in new capital raisings.
Dar Bourse: Growing in value, but still narrow and illiquid
The DSE has posted periods of capitalisation growth – supported largely by a handful of strong domestic counters, including leading banks and industrial firms, as well as select cross-listed regional companies.
Comparative Metrics: Global & African Benchmarks
| Metric | DSE (Tanzania) | South Africa (JSE) | Emerging Markets Global |
| Listed Companies | ~28 | ~300+ | Thousands |
| Total Cap (2024) | TSh 17.9 trillion | Largest in Africa (>US$600 billion) | Hundreds of trillions |
| Turnover | TSh 200–300bn annually (small) | Very high | Very high |
| Liquidity | Concentrated, low average turnover | Deep, continuous | Deep, continuous |
| IPO Activity | Rare | Regular sizable offerings |
However, this growth masks deeper structural weaknesses. The exchange remains small in size, with fewer than 30 listed firms, meaning investor opportunities are limited and trading activity is heavily concentrated on a few dominant counters.
Turnover patterns reveal intermittent liquidity, where volumes spike mainly during occasional block trades while regular daily activity remains modest. Compared with more active regional exchanges, trading depth, investor diversity, and price discovery at the DSE remain constrained.
IPO drought highlights market fatigue
Perhaps the strongest sign of limited vibrancy is the scarcity of new listings. Tanzania has gone many months – in some cases years – without a major IPO or new equity listing.
The IPO pipeline remains thin, and most companies prefer bank financing or private funding over public markets. This weakens one of the DSE’s primary roles: serving as an active platform for raising long-term growth capital.
The prolonged gap between IPOs suggests that corporate appetite for listing is low, regulatory incentives may be insufficient, and investor participation remains too narrow to attract fresh issuers.
Africa’s broader challenge
Across the continent, many exchanges mirror Tanzania’s experience. Markets in Botswana, Ghana, Namibia, Uganda, Zambia and others list between 12 and 29 companies each.
The OECD review notes that African equity markets are generally small, fragmented, costly to trade, exposed to macroeconomic shocks, and vulnerable to currency volatility. This makes attracting both domestic and foreign investors challenging.
South Africa remains the exception rather than the rule, with its exchange offering global-scale sophistication, broader corporate representation, and deeper institutional investment culture.
The way forward for Tanzania
For Tanzania to strengthen its capital market relevance, the DSE will need to:
Broaden its listings base by attracting more companies – especially growth-driven, high-impact sectors.
Increase liquidity through wider investor participation, stronger institutional engagement, and reduced market frictions.
Promote IPO readiness among local firms and improve incentives to list.
Leverage digital platforms to bring more Tanzanians into the investment ecosystem.
In a world where capital markets power corporate expansion, innovation, and economic resilience, the DSE is still operating below its potential. While South Africa continues to define Africa’s capital markets story globally, Tanzania’s exchange stands at a crossroads: either remain small and sporadically active, or reinvent itself into a more dynamic, liquid, and attractive platform for investors and issuers alike.
Vital Statistics
DSE Market Capitalisation Growth (2023–2025)
2023: TSh 14.6 trillion
2024: TSh 17.9 trillion
Quarterly Turnover Comparison (Q1 vs Q2 2025)
Q1 2025: TSh 123 billion
Q2 2025: TSh 152 billion
