The public has been challenged to engage in capital market and bond investments as part of efforts to increase community involvement in investment matters.
Currently, the number of Tanzanians participating in this sector is only 600,000 out of a population of 62 million, indicating that additional efforts are needed to increase inclusivity.
The Central Securities Depositories and Registry Company Limited (CSDR) CEO, Mr Benito Kyando, highlighted that one of the challenges behind the low participation rate is the lack of education on investment in capital markets and bonds, despite various efforts made by the government and private companies.
"There is still a large number of people who are unaware of investment opportunities in stock and capital markets.
Therefore, it is essential to emphasize education on this matter so that more Tanzanians can understand and invest," said Mr Kyando yesterday at the CSDR Annual Forum.
The forum, dubbed 'The Voice of Shareholders,' was established to strengthen collaboration, particularly in bond custody matters, as part of celebrating Customer Week.
Mr Kyando further noted that increased public awareness and education initiatives are crucial for demystifying the investment process, ultimately leading to greater participation.
He urged financial institutions to develop more accessible information resources and workshops tailored to the needs of everyday citizens.
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CMSA's Public Relations Manager, Mr Charles Shirima, also emphasized that limited knowledge contributes to the low number of Tanzanians in the market, while income levels and various economic factors further reduce investor participation in capital markets and bonds.
"Investment is optional, not mandatory. Many may have invested in other businesses, but I urge people to know that the capital market is a reliable investment area since it is regulated by specific bodies, including the government, thereby minimizing the risk of losing money," said Mr Shirima, who represented CMSA's Chief Executive Officer.
He added that CMSA continues to lay solid foundations to ensure increased investment in the country to help investors grow their incomes and boost individual economic growth.
Mr Shirima encouraged public-private partnerships aimed at promoting financial literacy, which could pave the way for more comprehensive investment opportunities and foster a culture of saving and investing among Tanzanians.
By enhancing financial education and building trust in the capital markets, officials believe that a more informed public will lead to increased participation and ultimately contribute to the nation's economic development.
