An investor’s guide to the Dar es Salaam Stock Exchange

By Theophil Christian Malundi

The Tanzanian economy is currently on a strong upward trajectory, with national growth forecast at approximately 5.9 percent and the local stock index projected to rise by 12–15 percent in 2026.

For many, the stock market can seem like a complex puzzle reserved for experts, but it is actually one of the most effective ways for anyone to grow their savings over time.

By understanding a few simple principles, both beginners and experienced investors can take part in this growth.

Banking and digital growth

The financial sector is the heart of the Dar es Salaam Stock Exchange (DSE), representing over half of all market activity.

Two major players, NMB and CRDB, are the pillars of this growth. NMB Bank recently achieved a record profit of Sh647 billion, while CRDB Bank saw its profit climb by 30.4 percent to Sh551.5 billion.

What makes these banks a smart choice? Both maintain very healthy loan books, with non-performing loans sitting at a low 2.9 percent, meaning they are managing risks well.

Furthermore, they are no longer just traditional banks; they are digital leaders. NMB now processes 96 percent of its transactions through digital channels, and CRDB is aggressively expanding its reach into neighbouring countries like the DRC and Burundi.

Reliable income from trusted brands

If you are looking for regular cash payments, known as "dividends," established companies like Tanzania Breweries (TBL) and Tanzania Cigarette Company (TCC) are excellent choices.

TBL recently increased its dividend payout by 85 percent, and TCC saw its profits surge by 74 percent last year. TBL is particularly resilient because it sources over 90% of its materials locally, protecting it from global currency changes.

While their stock prices may grow more slowly than the banks, they provide a steady and reliable stream of income that often beats the interest rates of standard savings accounts.

Investing in the digital future

Telecommunications giant Vodacom is currently in a bold transformation phase, shifting from a phone network provider to a financial technology leader through its M-Pesa platform.

While building out 4G and 5G infrastructure is expensive and has temporarily lowered short-term profits, it is a calculated bet on the future of digital finance in Tanzania.

For patient investors, this represents a significant long-term opportunity as infrastructure costs eventually stabilize and high-margin digital revenue grows.

A simple action plan for every investor

Investing is now more accessible than ever through mobile trading apps like Hisa Kiganjani, which have driven a massive 650 percent increase in market activity.

Here is a straightforward roadmap: For Beginners. Build a "core" portfolio by buying shares in highly stable and easy-to-trade companies like NMB, CRDB, or TBL;

For Higher Growth. Once you have a stable base, consider adding a small "satellite" investment in rapidly growing secondary banks, such as Maendeleo Bank, which recently saw price gains of over 40 percent in a single week; Reinvest for Success. The fastest way to build wealth is to take the dividends you receive and immediately use them to buy more shares, allowing your money to compound over time.

The Dar es Salaam Stock

 Exchange is a dynamic market open to everyone. Whether you are starting with a small amount or looking to diversify a large portfolio, a disciplined, research-based plan is the key to achieving your financial goals in 2026.

Mr Malundi is an investment analyst based in Scotland, UK Email: [email protected]