Investing in Tanzania

The Capital Markets and Securities Authority (CMSA) licenses and supervises brokers, dealers, investment advisers, fund managers, custodians, central securities depositories, exchanges and collective investment schemes. The Dar es Salaam Stock Exchange (DSE) trades shares, government and corporate bonds, exchange-traded funds, real estate investment trusts and Sukuk. The Central Depository and Settlement Corporation (CSDR) provides electronic securities custody and settlement. Tanzania also has the Tanzania Mercantile Exchange (TMX) for commodities, formal collective investment schemes and direct-investment pathways administered through different authorities. Zanzibar operates under a separate investment framework, so Mainland institutions and Zanzibar institutions should not be treated as interchangeable. Government securities are Treasury bills and Treasury bonds. Treasury bills mature after 35, 91, 182 or 364 days, are issued at a discount and generally require at least TZS 500,000, with additional bids in multiples of TZS 10,000. Treasury bonds run for more than one year; currently offered maturities include 2, 5, 7, 10, 15 and 20 years. They normally pay coupons twice a year, require at least TZS 1,000,000 and accept additional amounts in multiples of TZS 100,000. A buyer normally opens a CDS client securities account through a Central Depository Participant, submits a bid in a Bank of Tanzania (BoT) primary auction and pays for a successful bid on T+1. Secondary-market sales take place through a licensed broker on the DSE. EAC residents may qualify under the applicable BoT guideline, while auction dates, prospectuses and access conditions require a current check. Government securities usually have lower issuer risk than many private investments, but they are not free of risk. Interest-rate changes can affect bond prices, inflation can reduce real returns, and a longer maturity can make selling more difficult. Tanzanian-shilling exposure can also create foreign-exchange risk for someone whose future spending is in another currency. Holding a bond to maturity does not remove inflation, reinvestment or currency risk. A DSE investor normally completes know-your-customer and anti-money-laundering checks, provides NIDA identification where required, opens a CDS account through a licensed broker and places either a market order or a limit order. The DSE does not accept retail orders directly. Payment may use GePG, mobile money, a bank or a card, and current settlement is generally T+2. The broker issues a contract note as the purchase or sale record, while dividends are paid to the linked account. Listed choices include domestic and cross-listed shares, government and corporate bonds, exchange-traded funds, real estate investment trusts and Sukuk. Assessment should cover the issuer, business model, governance, earnings, debt, valuation, dividend policy, maturity, liquidity, foreign-currency exposure and the prospectus. An investor who is not a Tanzanian citizen may generally access DSE securities, but should arrange a custodian before buying. Foreign-ownership limits and available foreign-investor quotas can differ by issuer and sector, so access is not unrestricted. Government securities also depend on current BoT and foreign-exchange conditions. A custodian and broker should confirm the permitted holding, settlement process and repatriation conditions for the specific instrument. A collective investment scheme, often structured as a unit trust, pools money from many investors and invests it under stated rules. A CMSA-approved manager operates the fund, while a custodian or trustee safeguards assets under a trust deed and prospectus. The prospectus states the minimum investment, dealing days, redemption period, entry or exit charges, management fees, eligible assets and risks. An investor should read those terms before subscribing and should pay only through the approved provider. The UTT-AMIS Liquid Fund is a local example that invests entirely in money-market and debt instruments. Its published terms include eligibility for Tanzanian individual, joint and institutional accounts, an initial minimum of TZS 100,000, additional investments from TZS 10,000, redemption in about three working days, no entry or exit load and mobile access through *150*82# or its application. These terms do not automatically apply to other funds. The TMX is a CMSA-regulated commodity exchange. Its warehouse-receipt process links farmers' cooperatives such as AMCOS, licensed warehouses, quality certificates and electronic spot or auction settlement. Products can include sesame, pulses, oilseeds and cashews. Participation may require buyer registration, deposit and settlement arrangements, and the ability to accept delivery or manage logistics. Weather, quality, storage, insurance, delivery and counterparty failures can affect the result. Commodity exposure is therefore different from a simple passive fund investment. A direct investment can involve a company, agricultural activity, property-related project or other real asset. Under the TISEZA Act 2025, an investor is expected to register before starting an investment project and obtain an investment certificate or special economic zone licence where applicable. Typical evidence includes a business plan, financing proof, project location, environmental and sector approvals. Current TISEZA information contains conflicting local minimums of USD 50,000 and USD 100,000, while the stated foreign-investor minimum is USD 500,000; the live portal and applicable regulations control the current threshold. The project should start within 12 months, and failure to show progress within 24 months can create a revocation risk. A non-citizen does not normally receive ordinary ownership of Mainland public land. Project access may instead use a Government Granted Right, a TISEZA derivative right or a sublease, often for terms of up to 99 years and subject to renewal. A review should cover the title, land category, village or general land status, compensation issues, environmental impact assessment, survey and approval by the relevant land authorities. Direct land and project investments can be highly illiquid and carry title, expropriation, execution, climate, community, regulatory and financing risks. Zanzibar has a separate investment regime administered through the Zanzibar Investment Promotion Authority (ZIPA) and the Zanzibar Investment Act. Its investment-certificate process can require an online application, business plan, funding evidence, passport or national identification and police clearance. A certificate can remain valid, but an annual Investment Service License may still be required. ZIPA approval may also matter for transfers, management arrangements, land, buildings, tax clearance and environmental clearance. The Zanzibar Revenue Authority and Mainland tax authorities have separate roles. A suitable allocation starts with the investment goal, time horizon and need for accessible cash. A cash reserve should remain separate from long-term investments. A portfolio can combine government securities or a collective investment scheme with listed securities or a direct project, but exposure should be spread by issuer, maturity, sector, region and currency. Concentration in one Tanzanian-shilling asset, one issuer, one property or one agricultural product increases loss risk. Rebalancing can create taxes and transaction costs. Market price is not the same as underlying value, and historical performance does not predict future returns. Borrowed money or leverage adds interest, margin and liquidity risk and should not be treated as a normal funding source for a long-term portfolio. Costs vary by instrument and provider. DSE equity brokerage is listed at 1.7% up to TZS 10,000,000, 1.5% for the next TZS 40,000,000 and 0.8% above TZS 50,000,000. DSE and CMSA charges are listed at 0.3%, and standard CSD charges at 0.06%; the DSE FAQ gives a maximum total brokerage figure of 2.3768%. Custody, transfer, tax, foreign-exchange spreads and other charges may be additional. Bond transactions have separate broker, DSE and CSD charges. Treasury auction, CDP and settlement costs should be confirmed, and collective investment fees should be taken from the fund prospectus. Direct projects can add registration, licence, legal, survey, title, environmental, land, financing and management costs. ZIPA and TISEZA charges depend on the current portal or fee schedule. For Mainland Tanzania, the Ministry of Finance medium-term revenue strategy for 2025/26 to 2027/28 states a 5% withholding tax on listed DSE dividends for residents and non-residents and 10% withholding tax on interest. Other dividend rates, capital-gains treatment and company tax can depend on the investor's status and instrument. Zanzibar follows a separate Zanzibar Revenue Authority regime. The Tanzania Revenue Authority or Zanzibar Revenue Authority should verify the treatment for the specific investment; tax is separate from investment fees. Investors using regulated providers receive access to prospectuses and disclosures, electronic ownership and settlement records, dividends or coupons, corporate actions and complaint channels. A complaint normally starts with the licensed provider and can then proceed to the DSE or CMSA. Investors must provide accurate identity and foreign-investor information, complete KYC and anti-money-laundering checks, pay and settle transactions, review contracts and prospectuses, and meet applicable tax and reporting duties. Direct-project investors have additional land, environmental, labour, tax, licensing and progress-reporting responsibilities. Digital assets do not currently provide an established regulated retail investment pathway in Tanzania. The Bank of Tanzania has warned about virtual currencies. A 2024 report described them as not expressly prohibited but unregulated, noted that foreign-exchange rules do not treat virtual currencies as ordinary foreign currency, and stated that payment-system providers may not issue, distribute or settle them. A central bank digital currency remains under research. Bank deposits, payment accounts, ordinary savings and loans belong primarily to banking, while investment-related borrowing is relevant here only for its cost and risk. Debt and general household costs are separate subjects, except where they directly affect an investment decision.