Dar es Salaam. The government has outlined significant progress in Tanzania’s capital markets, with total investment reaching Sh63.15 trillion by December 2025.
Speaking during an awards ceremony for university students and certification of capital markets professionals on March 24, 2026, Minister for Finance Khamis Mussa Omar, said the sector is increasingly emerging as a key alternative source of financing for development projects.
He noted that collective investment schemes had grown to Sh4.4 trillion, while equity and bond issuances reached Sh6.9 trillion over the same period—reflecting rising investor confidence and deepening market activity.
“These achievements demonstrate clearly that capital markets are becoming an important avenue for mobilising long-term finance for development,” he said.
The minister attributed the progress to ongoing reforms under the Financial Sector Development Master Plan (2020/21–2029/30), which seeks to enhance financial inclusion and strengthen consumer protection.
He said the government had also introduced several regulatory frameworks to support market expansion, including guidelines for Sukuk bonds issued in 2023, environmental, social and governance (ESG) bonds regulations in 2025, and rules governing investment-based crowdfunding.
According to Mr Omar, the Capital Markets and Securities Authority (CMSA) has overseen the introduction of seven innovative financial products designed to attract both domestic and international investors.
Among them is the infrastructure bond, which raised Sh323.09 billion—exceeding its target by more than double. The funds are aimed at supporting local contractors working with the Tanzania Rural and Urban Roads Agency (Tarura).
A green bond issued by the Tanga Urban Water Supply and Sanitation Authority mobilised Sh54.72 billion, while the CRDB Bank green bond raised Sh171.83 billion, significantly surpassing its initial target.
The minister also highlighted gender-focused and social impact bonds issued by NMB Bank, which raised Sh74.2 billion and Sh212.9 billion respectively, supporting women-led enterprises, youth and vulnerable groups.
In addition, Shariah-compliant Sukuk bonds have gained traction, with total issuances reaching Sh680.2 billion. These include the Zanzibar Treasury Sukuk, which exceeded its target, alongside offerings from financial institutions and private entities.
He commended the CMSA for organising a nationwide capital markets competition for university students, which attracted over 28,000 participants—far exceeding the initial target of 20,000.
“The use of digital platforms, including mobile phones and online systems, has made this initiative a success and set a benchmark in the region,” he said.
The minister noted that some previous winners had gone on to become active investors, turning an initial Sh10 million investment into Sh125 million—an increase of more than 1,100 percent.
He also lauded the certification of 95 capital markets professionals trained in collaboration with the Chartered Institute for Securities and Investment (CISI) in London, saying the programme would enhance professional standards and global competitiveness in the sector.
Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), Mr Lucas Mwimo said the competition was designed to build understanding of capital markets and investment among students.
He noted that the exercise utilised information and communication technology platforms, including mobile phones and the internet, and was divided into two main parts: a question-and-answer segment and essay writing.
He added that first-place winners in each category, for both male and female participants, received Sh3 million, second place Sh2 million, and third place Sh1.5 million. Fourth place winners received Sh1 million, fifth place Sh700,000, while remaining top-20 participants each received Sh400,000.
In addition, six top performers from both categories will be sponsored on a study tour to visit various institutions to gain deeper exposure to capital markets operations, including stock markets and leading financial service providers locally and internationally.
On the executive training programme, Mr Mwimo said it was implemented in collaboration with the UK-based Chartered Institute for Securities and Investment (CISI), aiming to increase the number of highly skilled capital markets professionals with international standards.
One of the competition winners, Godfrey Dennis, said the programme was important as financial literacy is not only for experts but for everyone, enabling individuals to understand capital markets and build savings discipline.
