The sale of shares and corporate bonds in Tanzania saw significant increases in the past year, marking notable achievements in the country's capital market development. According to the Capital Market and Securities Authorities (CMSA), share sales surged by 68.5%, reaching 225.2 billion Tanzanian Shillings by December last year, compared to 133.7 billion Tanzanian Shillings in December 2022.
Similarly, the sale of corporate bonds witnessed a 29.4% growth, reaching 3.9 trillion Tanzanian Shillings by December last year, up from 3 trillion Tanzanian Shillings in December 2022.
CMSA's Chief Executive Officer, Nicodemus Mkama, attributed these accomplishments to Tanzania's conducive environment, participatory policies, and sustainable laws facilitated by President Samia Suluhu Hassan. The introduction of new financial products, including green bonds, social bonds, and Sukuk bonds, has enhanced Tanzania's standing in the global capital markets, attracting increased investor interest.
Mr. Mkama highlighted a 10.1% growth in the value of investments, reaching 37.4 trillion Tanzanian Shillings by the end of 2023, compared to 33.9 trillion Tanzanian Shillings in December 2022.
Looking ahead to the 2024/25 plans, CMSA aims to finalize and submit draft guidelines for sustainability bonds to the Finance Ministry for endorsement and subsequent publication in the Government Gazette. The authority also plans to enhance public awareness about capital market opportunities through various channels, including newspapers, television, and radio interviews.
Additionally, CMSA intends to provide guidelines for the management of new and innovative products and services in the market while strengthening the use of technology to improve digital systems for better service provision in the capital markets.