Mobile Trading Platforms Drive Surge in New Investors in Tanzania's Capital Markets

MTPs tripled new investors in Tanzania’s capital markets, enhancing accessibility and liquidity.

According to a recent report by Vertex International Securities (VIS) Ltd., the use of the Mobile Trading Platform (MTP) has caused the number of new investors in the nation's capital markets to triple in just a single year.  According to the 2024 Capital Markets Review report, by December of last year, there were 22,774 new investors, up from roughly 5,700 during the same period in 2023. Eighty-nine percent of these new participants were individual investors. Mobile trading platforms have greatly improved retail investors access to capital markets, according to Mr. Beatus Mlingi, VIS Manager of Research and Analytics, who presented the findings. 

According to the research, the MTP enhanced user experience while contributing 24.44 percent to equity turnover.  A wide range of financial products and technological advancements contributed to the Dar es Salaam Stock Exchange's (DSE) notable growth last year.  Among the main themes were improved investor confidence, more liquidity, and policy-driven advancements.   "Milestones in 2024 show how innovative products can drive capital-related strategies, reflecting a supportive regulatory environment," he said.   The Capital Markets and Securities Authority's (CMSA) CEO, Mr. Nicodemus Mkama, highlighted the significant growth and transformation of Tanzania's capital markets sector in 2024.

According to him, the money donated would help local contractors who join with the Tanzania Rural and Urban Roads Agency (TARURA) carry out road development projects in both rural and urban regions. The CEO of VIS, Mr. Mateja Mgeta, said that the industry made great progress in product registration as financial institutions introduced new investment products.  Technological improvements have brought about a great change in the investing scene; widespread usage of digital platforms has increased financial inclusion and raised investor involvement.