It was incorporated in 1996 and began trading in March 1998 and today, already the Dar es Salaam Stock Exchange (DSE) shows great future potential. Though the DSE is one of the smallest stock exchanges in the world reporting a Tshs. 7.1 billion total market capitalization exchanges it has extraordinary returns. The Tanzania Cigarette Company (TCC), one of the companies traded on the DSE, has shown a phenomenal 42% returns in their offer price in their first month in trading. The Dar es Salaam Stock Exchange started trading with only one session every Wednesday but today- four sessions are needed to satisfy trading activity.

Though the exchange is showing promising results there has been a certain hesitation from the Tanzanian community. This could be due to the lack of surplus funds most Tanzanian have and more so, the lack of knowledge on what a 'stock market' is and its functions. Dr. Hamisi Kibola the DSE Chairman suggests education for Tanzanians. He says there has been great effort to do so and have made numerous trips nationally to inform people of the benefits of investments. But he also realizes it is more of a cultural change to do so thus making the task quite difficult. “Try making a Masai herder to sell his cow and give the money to someone they don’t know or have little faith in” said one observer “Now that’s a task!" However, this is a sad situation because many Tanzanians could have cashed in on TCC's 42% returns to help uplift the economy (especially before foreigner would come and flood the market).

Currently, the stock exchange only has six equities (which will increase to about ten by the end of 2004), all from Tanzania, namely, Tanga Cement Company Limited, Tanzania Breweries Limited, Dar es Salaam Airport Handling Company Limited, Tanzania Cigarette Company Limited, Tanzania Tea Packers Limited, and Tanzania Oxygen Limited. Though foreign investors have expressed great interest in the stock exchange, there are no foreign companies on the exchange and as of October 2002, foreigners were allowed to trade on the DSE. The Central Bank of Tanzania (BoT) in collaboration with the Capital Markets and Securities Authority permitted foreign participation October 1st, 2002. It is anticipated that private Tanzanian companies will be able to trade financial resources at ease and at a less expensive method in hope to replace long-term loans. This will be key in the Tanzanian Economy since bank loans offer high and unattractive interest rates and allows for entrepreneurs to more easily raise capital for their investments.

With such great results the Dar es Salaam stock exchange is making a positive impact on the Tanzanian economy and should be an example for others. We look forward to seeing the same vigor in the near future.