Trading activities at the Dar es Salaam Stock Exchange (DSE) have slowed down as both local and foreign investors adopt a “wait-and-see” approach ahead of Tanzania’s upcoming general elections.
Analysts say many investors are holding back from making major moves in the market due to political uncertainty and expectations of potential policy shifts depending on the election outcome.
According to the DSE Weekly Report, total market turnover dropped significantly compared to the previous week, reflecting reduced investor confidence and cautious positioning across key sectors.
Speaking to MwanaClick, financial analyst and investment consultant Josephat Mbilinyi said the slowdown is a normal trend during election seasons.
“Investors often prefer to observe how political events unfold before committing capital,” he said. “Most are waiting for a clear policy direction from the incoming government, especially in taxation and energy reforms.”
He added that the cautious mood is being felt across the banking, industrial, and mining counters, which have seen minimal activity in recent days.
Data from the DSE shows that foreign investor participation has fallen sharply in October, accounting for less than 30 percent of total market activity — a notable decline from earlier months.
Market watchers attribute this to geopolitical factors, a strong U.S. dollar, and domestic political transitions, which have made foreign investors more risk-averse.
A senior DSE official, who requested anonymity, noted that several institutional investors have shifted their focus to short-term government securities until the election period ends.
“They prefer safer assets during times of uncertainty. Once stability returns, we expect renewed participation in equities,” the source said.
Despite the slowdown, major listed companies such as NMB Bank, CRDB Bank, Tanzania Breweries Limited (TBL), and Tanzania Cigarette Company (TCC) have maintained stable share prices, supported by strong fundamentals and positive half-year results.
Market analysts believe that dividend prospects and continued profit growth in the banking sector could help the DSE rebound once the election dust settles.
Economists are optimistic that the market will regain momentum after the elections, especially if the new administration sends clear signals about policy continuity, private sector support, and investment-friendly reforms.
“Once the elections are over and investors see a stable transition, confidence will return,” said Dr. Ruth Mtui, an economist at the University of Dar es Salaam. “We expect trading volumes to pick up by the end of the year.”
