How to Buy Shares on the Dar es Salaam Stock Exchange (DSE)

The Dar es Salaam Stock Exchange (DSE) is where shares in Tanzania's listed companies are bought and sold. Banks, breweries, cement makers, telecoms and other well-known businesses are listed there, and the market is supervised by the Capital Markets and Securities Authority (CMSA). This guide explains how to buy shares on the Dar es Salaam Stock Exchange, how trading works, and what to check before you invest.

What owning shares means

Buying a share makes you a part-owner of the company. You can earn money in two ways: dividends, when the company pays out part of its profits, and a higher share price, which you realise when you sell. Neither is guaranteed. Share prices can fall, and companies can reduce or skip dividends in a bad year. Over long periods, however, shares in well-run companies have been one of the main ways investors grow their wealth.

Getting started on the DSE

To invest, you open an account with a licensed dealing member, the DSE's term for a stockbroker. The broker also opens a Central Depository System (CDS) account in your name, where your shares are recorded electronically. You will typically need your NIDA ID or passport, a passport photo, your TIN and bank details. Check that the broker appears on the DSE or CMSA list of licensed members before you hand over any money.

Many brokers now let you open an account and trade through a mobile app, which makes it easy to invest small amounts regularly and track your holdings.

Buying and selling shares

You tell your broker which shares you want, how many, and the highest price you will pay. When a seller at that price is found, the trade goes through and the shares move into your CDS account. Selling works the same way in reverse. Each trade carries brokerage commission plus small exchange and regulatory fees, so it pays to avoid buying and selling too often.

Dividends are paid into your registered bank account after withholding tax. Keep your details up to date with the broker so that payments and company notices, such as invitations to annual general meetings, reach you.

Bonds on the DSE

Government and corporate bonds are also listed on the DSE. Investors who buy Treasury bonds at Bank of Tanzania auctions can later sell them on the exchange through a broker, and others can buy them there. Bonds pay regular interest and are generally less risky than shares, so some investors hold both.

What to watch before investing

Some DSE shares trade every day; others change hands only now and then. If a share is thinly traded, you may wait to find a buyer when you want to sell. That is one reason shares are best for money you can leave alone for at least five years.

Before buying, look at the company's results: steady profits, a consistent dividend and manageable debt are good signs. The dividend yield, which is the annual dividend divided by the share price, helps you compare income across companies. Spread your money across several companies and sectors. And treat anyone who promises guaranteed share returns with suspicion.

Shares or a fund?

If choosing individual companies feels daunting, a unit trust that invests in shares, such as some of those run by UTT AMIS, spreads your money for you and is managed by professionals, for a fee. That can be a good starting point for new investors.

Building a long-term plan

Shares work best as part of a plan that starts with an emergency fund and safer savings, such as Treasury bills. Once those are in place, investing a fixed amount in shares every month, and reinvesting dividends, smooths out price swings over time. Use our savings calculator to see how regular investing could grow.

Frequently asked questions

How do I start buying shares in Tanzania?

Open an account with a licensed DSE dealing member, who will also open your CDS account.

How to buy shares on the Dar es Salaam Stock Exchange