The Latest

Tanzania Attracts Just 9% of East Africa’s Private Equity Deals in Q1 2025 and Faces Capital Gaps, Report Reveals

The Q1 2025 Private Capital Activity Report indicates that Tanzania attracted just 9% of East Africa’s private equity investment deals. This highlights significant capital gaps in the market, presenting both challenges and opportunities for future growth.
April 18, 2025
2 minute read
AFRICA PRIVATE EQUITY DEALS Q1 2025

The Q1 2025 Private Capital Activity Report, produced by Stears Information in partnership with the East Africa Venture Capital Association (EAVCA), reveals significant insights into East Africa’s investment landscape.

The report indicates that Tanzania attracted only 11 transactions, accounting for 9% of total deals in East Africa. This positions the country behind Kenya, which dominated with 72% of the region’s transactions.

Key Findings:

  1. Capital Distribution Challenges: The report emphasizes that Tanzania, along with Uganda and Rwanda, faces a “capital drought” for early-stage ventures. This is attributed to limited early-stage support and a reliance on a few core sectors, primarily energy and fintech.
  2. Investment Opportunities: There is a growing recognition of the need for targeted capital mobilization in underserved markets. Sectors such as renewable energy in Tanzania present significant opportunities for investors looking to diversify their portfolios beyond the traditional sectors.
  3. Local Institutional Capital: The report notes a persistent bottleneck in the investment ecosystem due to the lack of local Limited Partner (LP) participation in fundraising. In Tanzania, as in other East African countries, local institutional capital remains underutilized, with pension funds and insurers slow to engage in private equity investments.
  4. Sectoral Trends: The energy and healthcare sectors are highlighted as areas of potential growth. Mobilizing local capital could stabilize fund structures and unlock investments in high-impact sectors, which are crucial for Tanzania’s economic development.
  5. Comparative Performance: While Tanzania’s transaction volume is modest compared to Kenya, the report suggests that with strategic investments and improved local capital participation, the country could enhance its attractiveness to investors.
RELATED:  Call for Proposals for Advisory Services to Establish Venture Capital and Private Equity Fund in Tanzania

In conclusion, while Tanzania’s current investment landscape shows room for improvement, the potential for growth in sectors like renewable energy and healthcare, coupled with increased local capital participation, could pave the way for a more balanced and robust investment environment.

TANZANIA BUSINESS & INVESTMENT GUIDE 2026

Tweet
Share
Share
Share
Related Posts
DSE Dar es Salaam Stock Exchange & TanzaniaInvest Report
Read More

Dar es Salaam Stock Exchange Week 41 of 2025: Bond Turnover Surges +148.34%, Equity Turnover Rises +32.38%, TTP +60.98%, CRDB +12.28%

During week 41 of 2025, total bond turnover at the Dar es Salaam Stock Exchange (DSE) saw a substantial surge of +148.34% to TZS 409.14 billion, while equity turnover rose significantly by +32.38% to TZS 15.66 billion. The total market capitalisation rose slightly by +2.16% to TZS 21,757.85 billion. Four of the five DSE benchmarks advanced, with the Banks, Finance & Investment Index (BI) seeing the largest gain at +5.37%. Top-gaining stocks were TTP (+60.98%), CRDB (+12.28%), and MUCOBA (+11.76%), while the largest losses were recorded by TCCL (-13.56%), TCC (-5.75%), and MCB (-2.70%).
DSE Dar es Salaam Stock Exchange & TanzaniaInvest Report
Read More

Dar es Salaam Stock Exchange Week 40 of 2025: Bond Turnover Surges +254.52%, Equity Turnover Falls -28.22%, TTP +20.59%, DSE +16.00%

During week 40 of 2025, total bond turnover at the Dar es Salaam Stock Exchange (DSE) saw a massive surge of +254.52% to TZS 164.75 billion, while equity turnover fell significantly by -28.22% to TZS 11.83 billion. The total market capitalisation slightly fell by -0.56% to TZS 21,297.59 billion. Only one of the five DSE benchmarks advanced, the Commercial Services Index (CS) at +0.38%. Top-gaining stocks were TTP (+20.59%), DSE (+16.00%), and MKCB (+3.65%), while the largest losses were recorded by MCB (-11.90%), TCCL (-8.88%), and SWIS (-7.27%).
DSE Dar es Salaam Stock Exchange & TanzaniaInvest Report
Read More

Dar es Salaam Stock Exchange Week 39 of 2025: Equity Turnover Rises +9.28%, Bond Turnover Plunges -66.23%, AFRIPRISE +5.38%, DSE -14.97%

During week 39 of 2025, equity turnover at the Dar es Salaam Stock Exchange (DSE) reached TZS 16.48 billion, reflecting a week-on-week increase of +9.28%. Total bond turnover fell significantly by -66.23% to TZS 46.47 billion. The total market capitalisation slightly fell by -0.43% to TZS 21,418.13 billion. Only one of the five DSE benchmarks advanced, the Industrial & Allied Index (IA) at +0.64%. Top-gaining stocks were AFRIPRISE (+5.38%), DCB (+4.08%), and TTP (+3.03%), while the largest losses were recorded by DSE (-14.97%), SWIS (-14.95%), and MCB (-14.29%).
DSE Dar es Salaam Stock Exchange & TanzaniaInvest Report
Read More

Dar es Salaam Stock Exchange Week 38 of 2025 Report: Equity Turnover Rises to TZS 15.08 Billion (+159.15%), Bond Turnover Rises +39.81%, TTP +6.45%, MKCB -15.32%

Week 38 of 2025 at the Dar es Salaam Stock Exchange (DSE) saw a massive increase in trading activity compared to Week 37. Equity turnover reached TZS 15.08 billion, marking a surge of approximately +159.15% from Week 37's TZS 5.82 billion. Share volume also increased substantially to 7.75 million shares. Furthermore, total bond turnover increased by +39.81% to TZS 137.58 billion. The total market capitalisation decreased slightly by -0.61%. Of the five DSE benchmarks, the Banks, Finance & Investment Index (BI) experienced the greatest fall at -2.13%. The top-gaining stock was TTP (+6.45%), while the largest loss was recorded by MKCB (-15.32%).