By Costantine Muganyizi
The Dar es Salaam Stock Exchange (DSE) set a new market record in September 2026, with total market capitalisation reaching TSh40.57 trillion, marking the first time the bourse has closed a month above the TSh40 trillion threshold.
The September milestone capped a strong run for Tanzania’s equity market, with total market capitalisation rising from about TSh38.74 trillion at the end of August and standing roughly 69 percent above its end-2025 level.
DSE Chief Executive Officer Peter Nalitolela described the breakthrough as an important indication of the growing scale and relevance of Tanzania’s capital markets.
“The achievement reflects the increasing scale and importance of the country’s capital markets as a platform for investment and wealth creation,” Mr Nalitolela said.
The market first crossed the TSh40 trillion mark on September 10, closing at about TSh40.3 trillion, before reaching about TSh40.61 trillion the following day.
The September advance was supported by continued gains in major listed companies, particularly banking counters, with NMB Bank and CRDB Bank among the key contributors to market valuation.
Isaac Lubeja, Advisory Manager at Zan Securities, said the performance reflected a combination of stronger corporate fundamentals and increased investor interest.
“These are not prices running ahead of fundamentals; they are prices catching up with them,” Mr Lubeja said, citing strong earnings from major banks.
NMB’s 1-for-10 share split was another notable development during the period, lowering the nominal price of the shares and increasing their accessibility to a wider group of investors.
Domestic investors drive participation
The September milestone also highlighted the growing role of domestic investors.
Domestic market capitalisation reached TSh28.11 trillion, accounting for nearly 70 percent of total market capitalisation at the end of September.
During the week ending September 11, local investors accounted for 99.85 percent of equity purchases, underscoring the importance of domestic savings and investment to market activity.
Mr Lubeja said domestic investors had absorbed significant foreign selling during the third quarter while equity prices continued to rise.
“This rally is ours: it is domestically owned,” he said.
Mr Nalitolela, however, has cautioned that the increase in market value should not automatically be interpreted as an equivalent improvement in liquidity.
“Market capitalization and liquidity are related, but they measure different aspects of market performance,” he said.
Market broadens beyond equities
The record equity valuation came alongside continued activity in other capital-market segments.
During the third quarter, equity turnover reached TSh824.08 billion, while government bonds recorded about TSh1.2 trillion in turnover. Outstanding government bonds stood at approximately TSh33.47 trillion at the end of September.
The Exchange-Traded Fund (ETF) segment also recorded TSh28.70 billion in third-quarter turnover, with 23.36 million units traded. ETF is an investment fund that holds a basket of assets – such as shares, bonds, commodities or other securities – and is traded on a stock exchange like an ordinary share.
For Mr Nalitolela, the TSh40 trillion milestone provides a foundation for the next stage of market development.
“Our ambition goes beyond market valuation,” he said, pointing to the need for more listings, greater capital raising, stronger liquidity and wider participation. The September record therefore marks not only a new valuation high for the DSE, but also an important benchmark for the continued development of Tanzania’s capital markets.
