Tanzania's capital market posted robust growth in the first half of 2026, with the Dar es Salaam Stock Exchange (DSE) reporting sharp increases in market capitalisation, trading activity and new securities listings, underpinned by strong investor confidence and improved corporate performance.
Speaking during a media briefing in Dar es Salaam, DSE Chief Executive Officer Peter Situmbeko Nalitolela said the exchange recorded broad-based growth across both the equity and fixed-income markets during the six months to June 30.
The total market capitalisation of the 28 companies listed on the exchange rose by 79.1 percent year-on-year to TZS 35.18 trillion, up from TZS 19.64 trillion recorded during the same period last year.
Domestic listed companies outperformed the broader market, with their combined market value increasing by 84.9 percent to TZS 23.74 trillion from TZS 12.85 trillion a year earlier.
NMB Bank remained the country's most valuable listed company, with a market capitalisation of TZS 8.11 trillion, followed by CRDB Bank at TZS 6.87 trillion.
The banking sector was the main driver of the market rally, lifting the DSE's benchmark indices. The DSE All Share Index (DSEI) rose 72 percent to 4,048.8 points, while the Tanzania Share Index (TSI) climbed 80.9 percent to 8,777.1 points.
The Banking, Finance and Investment Index recorded the strongest performance, surging 174 percent, supported by gains in banking stocks, including NMB Bank, CRDB Bank and KCB Bank Tanzania.
The bond market also maintained its upward momentum. Government bonds listed on the exchange increased by 17.8 percent to TZS 32.01 trillion, while the value of corporate and public institution bonds and Sukuk issued in Tanzanian shillings rose 18.2 percent to TZS 1.60 trillion.
Foreign currency-denominated corporate bonds expanded significantly, rising 154.9 percent to US$186.05 million.
The Exchange Traded Fund (ETF) market continued to grow following the launch of Tanzania's first ETF in October last year, reaching a market value of TZS 185.52 billion.
Trading activity strengthened considerably during the second quarter as investor participation increased.
Total equity turnover more than tripled to TZS 496.8 billion, representing a 227.2 percent increase from TZS 151.8 billion recorded during the corresponding period in 2025. Average daily trading stood at TZS 8.28 billion.
Bond and Sukuk trading reached TZS 1.45 trillion during the quarter, while total bond transactions for the first half rose 34.6 percent year-on-year to TZS 3.03 trillion. ETF trading totalled TZS 11.84 billion.
The exchange also expanded its product offering through the listing of five new debt securities valued at a combined TZS 236.42 billion.
They include First Housing Finance's Makazi Bond, Equity for Tanzania (EFTA) Bond, KCB Bank Tanzania's Mapato Sukuk, TMRC's Nyumba Bond and iTrust Finance's iTrust Bond.
DSE Plc also reported improved financial performance during the second quarter, supported by higher trading volumes.
Gross revenue increased by 60.7 percent to TZS 6.26 billion, while profit before tax rose 74.3 percent to TZS 2.64 billion. Profit after tax climbed 64.6 percent to TZS 2.38 billion, with earnings per share increasing to TZS 99.82.
The exchange attributed the improved earnings to a sharp rise in trading activity, particularly in June, when transaction values nearly tripled compared with May.
Transaction and securities processing fees accounted for 52 percent of total revenue during the quarter, up from 45 percent a year earlier.
The first-half performance highlights the growing depth of Tanzania's capital market, with expanding participation in equities, bonds and newer investment products supporting the mobilisation of long-term capital for the economy.
Continued growth in banking stocks and a steady pipeline of new securities are expected to sustain market momentum during the remainder of 2026.
