Vertex positions itself as market builder as Tanzania’s capital markets enter expansion phase

Vertex International Securities Limited is moving beyond its role as a brokerage house to become a market builder using its 2025 Capital Market Review to frame the next phase of Tanzania’s financial sector growth.

Gathering industry leaders under the theme “From Resilience to Expansion: Advancing Tanzania’s Capital Market through Innovation and Inclusion,” the firm cast itself as a platform for alignment between regulators, issuers and investors, at a time when equity turnover has surged and new rules are reshaping trading dynamics on the Dar es Salaam Stock Exchange.

Held on February 27 at the Hyatt Regency in Dar es Salaam, the annual forum brought together policymakers, bankers, fund managers and institutional investors to reflect on 2025 performance and chart the outlook for the year ahead.

For Mateja Mgeta, Chief Executive of Vertex International Securities Limited, the event reflects a deliberate strategic shift. By convening annual reflection and dialogue, Vertex is seeking to foster a culture of collaboration across the financial ecosystem, ensuring that innovation and inclusion remain at the core of market expansion.

“Capital markets play a significant role in mobilizing long-term capital,” he said. The 2025 review, he noted, was designed to examine both performance metrics and structural reforms, while assessing how the market can better contribute to Tanzania’s development ambitions.

A Market Expanding in Size and Liquidity Vertex’s Operations Manager, Mr Frank Kakwezi, presented data showing that total market capitalisation climbed 34 percent — from Sh17.9 trillion at the end of 2024 to Sh23.99 trillion by December 2025. Equity turnover surged by 190 percent over the same period, signalling not only rising valuations but also significantly improved liquidity.

One of the most consequential developments in 2025 was the introduction of revised trading regulations at the DSE. Under updated Rule 212, price cap limits are now set as fixed percentages of the previous closing price, with variation bands determined by a company’s market capitalisation and number of issued shares.

Securities with market capitalisation below Sh1 trillion are allowed a 15 percent variation. For companies valued above Sh1 trillion, the cap narrows to 5 percent where issued shares exceed Sh2 billion, and to 2 percent where shares fall below that level.

The adoption of the Volume Weighted Average Price (VWAP) as the new reference for closing prices further enhances price discovery and reduces volatility distortions.

Oversubscription and Capital Reallocation

According to Ramadhan Kagwandi, Chief Executive and licensed Investment Advisor at Exodus Advisory, surplus liquidity from heavily subscribed primary auctions increasingly flowed into secondary markets, particularly equities.

Kagwandi described 2025 as evidence that Tanzania’s capital markets are not merely reactive but structurally sustainable. However, he cautioned that expansion will require deliberate effort to broaden geographic reach, introduce additional products and maintain regulatory responsiveness.

Chief Finance Officer at the Dar es Salaam Stock Exchange (DSE) Mr Lucas Sinkala, noted that investor numbers have increased alongside the introduction of new products such as Sukuk and mobile-based trading platforms.

Vertex itself expanded its product suite in 2025 with the launch of the Vertex International Securities Exchange Traded Fund (Vertex-ETF) and the Vertex Bond Fund, according to Board Chair Peter Machunde.

Institutional Anchors: Banks and Insurers

Patric Mususa, Executive Director at the Tanzania Institute of Bankers (TIOB), said banks remain key partners in bond market development. Yet fewer than ten of approximately 40 registered banks are actively dealing in bonds — suggesting room for deeper institutional participation.

Helena Mzena, Chief Executive Officer of Jubilee Life Insurance Corporation of Tanzania Limited, described insurers as natural long-term investors whose liabilities align closely with infrastructure and development financing needs.

Mariam Salum from Tiseza reinforced that capital markets play a central role in financing national development priorities — particularly where bank lending alone may prove insufficient or short-tenored.

Regulatory Confidence and Investor Protection

CMSA’s director of Market Supervision and Investigation Mr Exaud Julius, speaking on behalf of the Chief Executive Officer, commended Vertex for sustaining an industry platform that promotes investor confidence and institutional trust.

He pointed to increased turnover, rising transaction values and higher investor numbers as evidence of market strengthening. The policy, legal and regulatory environment, he said, has matured significantly, providing a stable foundation for innovation.

Fred Odatt, Manager of Internal Audit at CMSA, observed that Tanzanian firms have often moved ahead of formal regulation in introducing new products.

The Outlook

Speakers broadly agreed that the ingredients for expansion are in place: regulatory alignment with global standards, technological adoption, growing investor appetite and supportive macroeconomic stability.

The challenge now lies in sustaining momentum without compromising transparency or prudence. For Vertex, the 2025 Capital Market Review underscored a central proposition — that capital markets are not merely reflective of economic growth but instrumental in shaping it.