What You Need to Know
The debt capital market in Tanzania achieved remarkable growth in 2025, with total turnover rising by 86.08% to 5.86 trillion/-. This surge was fueled by government securities and a rebound in corporate bonds, alongside a notable expansion in Islamic finance instruments. The report highlights a structural shift towards a more diversified debt market, emphasizing the importance of thematic bonds in
Africa-Press – Tanzania. THE debt capital market posted a breakout performance in 2025, driven by a surge in government securities, a rebound in corporate bonds and a record expansion of Islamic finance instruments.
According to the Vertex International Securities 2025 Capital Market Review, total turnover across debt securities and Sukuk certificates rose by 86.08 per cent to 5.86tri/- from 3.15tri/- in 2024, marking one of the strongest growth phases in recent years.
Government securities remained the backbone of the market, with turnover climbing 86.04 per cent to 5.85tri/-.
The report links this to sustained appetite for low-risk assets, improved access to trading and a more active secondary market.
“The government securities market continued to anchor liquidity and investor participation,” the report states, noting that the segment remains central to market stability and scale.
Corporate and subnational bonds also rebounded sharply, albeit from a low base.
Turnover jumped 174.43 per cent to 12.12bn/-, supported by financial institutions and the rise of sustainability-linked instruments.
“The momentum was largely driven by active participation from financial institutions and the emergence of sustainability-linked instruments,” the report says.
Key issuances included the Samia Infrastructure Bond, CRDB Kijani Bond, Azania’s Bondi Yangu and NMB’s Jamii Bond, reflecting growing investor appetite for thematic financing tied to development priorities.
The report shows that leading the corporate bond space were landmark issuances that captured strong investor appetite, the Samia Infrastructure Bond with 4.19bn/- in turnover, followed by CRDB Kijani Bond at 3.60bn/-, Azania’s Bondi Yangu at 2.22bn/- and NMB Jamii Bond at 1.47bn/-.
“Collectively, these instruments not only boosted market liquidity but also demonstrated how thematic bonds are reshaping capital mobilisation for development priorities,” Vertex report says.
Meanwhile, the Sukuk segment reshaped the market narrative despite a dip in secondary trading.
New issuances, including Zanzibar Sukuk and CRDB Al-Barak Sukuk, pushed total issuance to 578.5bn/-, translating into a year-on-year growth of 2,530.7 per cent.
“This milestone firmly positions Islamic finance as a viable and scalable funding channel,” the report notes.
The broader expansion signals a structural shift in the country’s capital markets, with increasing diversification beyond traditional instruments.
“The breadth of this growth illustrates not merely higher volumes, but a structural shift toward a more diversified and resilient debt market,” the report states.
However, the review flags a persistent gap in subnational financing, citing the absence of new municipal or utility bond issuances since the Tanga UWASA bond.
“This highlights an untapped opportunity for municipal and utility financing,” it says, pointing to the need for policy and institutional support.
Overall, the report concludes that 2025 marked a transition in the debt market from scale to strategic impact, with stronger alignment toward development financing and financial inclusion.
“In essence, 2025 was not just a year of growth, it was a year of evolution,” the report states.
On the equity side, the market recelebrated two right issue transactions, DCB Bank and the biggest ever Rights Issue by Tanga Cement.
The market also marked a historic breakthrough with the successful launch and listing of the first ever Exchange Traded Fund (ETF), Vertex ETF, which invests in the most actively traded equities on the DSE; followed by the first regional ETF in East Africa, iTrust EAC Large Cap ETF, which invests in largecap equities across EAC stock exchanges.
In addition, significant strides were made in collective investment schemes (CISs), enhancing a robust foundation for product diversification.
In this space, Vertex International Securities launched the Vertex Bond Fund, while Orbit Securities launched Inuka Dozen Index Fund.
Similarly, Tanzania Securities Limited received approval of expanded its portfolio of launching two new funds, namely, Kesho Tulivu Fund and Imara Fund, while Africa Pension Fund Limited launched the Insurance Linked Unit Trust Scheme named Ziada Fund.
The report theme from resilience to expansion: Advancing Tanzania’s capital market through innovation and inclusion.
Tanzania’s capital market has undergone significant transformations in recent years, particularly with the introduction of various financial instruments aimed at enhancing liquidity and investor participation. The growth of government securities has been pivotal, serving as a foundation for market stability and attracting low-risk investments. Additionally, the rise of corporate bonds and Islamic finance reflects a broader trend towards diversification in the financial landscape, catering to evolving investor preferences and development priorities.
