How to Buy Shares on the Dar es Salaam Stock Exchange
Buying shares on the Dar es Salaam Stock Exchange (DSE) is more straightforward than most first-time investors expect. You don't trade directly on the exchange — you go through a licensed broker who places orders on your behalf. This guide walks through the whole process in plain language.
Information and education only — not investment advice. This explains how the mechanics work, not what to buy.
Do I need a broker to buy shares on the DSE?
Yes. You cannot place orders on the DSE yourself. Trades are executed by a Licensed Dealing Member (LDM) — a stockbroking firm authorised by the exchange and regulated by the Capital Markets and Securities Authority (CMSA). The current list of licensed brokers is published by the central depository (CSDR) and the DSE. Examples of long-standing firms include Solomon Stockbrokers, Tanzania Securities, Orbit Securities, Vertex International and CORE Securities — but always confirm a firm's current licence before sending money.
What is a CDS account and how do I open one?
A CDS (Central Depository System) account is the electronic account that holds your shares — the equivalent of a securities wallet. You open one through your chosen broker:
- Request the CDS account-opening form from a licensed broker.
- Complete the KYC ("Know Your Client") form — it asks for your ID (passport or national ID; a driver's licence may be accepted), your address, and your preferences for receiving dividends and paying fees.
- Return the forms with your ID documents. The broker assigns you a CDS account number.
Diaspora investors can typically open an account remotely with the same documents — check with the broker on certified-copy requirements.
How do I actually place a buy order?
For most brokers, you simply email your broker your trade instruction — the share (ticker), the number of shares, and any price limit. The broker executes the order on the DSE and sends you a contract note confirming the price, commission and fees. Some brokers also offer online or app-based ordering.
What does it cost to buy shares on the DSE?
Total transaction costs are capped at a maximum of 2.4% of the trade value. That figure bundles together brokerage commission, DSE fees, CMSA fees, CDS fees and the Fidelity Fund levy. On small trades the percentage can feel high, so some investors batch purchases rather than buying in tiny lots.
How long does settlement take?
Settlement — when the shares legally become yours and money changes hands — takes up to six business days in Tanzania. Your shares then sit in your CDS account, and declared dividends are paid to the bank or mobile-money details on file.
A note on liquidity
The DSE is a thinner market than large global exchanges. Outside the banking counters, daily volumes can be light, and block trades drive much of the index movement. That means large orders can move the price, and some shares trade infrequently — worth understanding before you place an order. See our DSE equities board for liquidity context on each listed name.
Where to go next
- Browse the companies we cover for sourced, plain-English profiles.
- Understand the market backdrop on the Markets hub.
- Get the free daily Brief to follow the DSE without the noise.
Information and education only. Nothing here is investment, legal or tax advice, a recommendation, or an offer to buy or sell any security. Confirm any broker's current licence with the CMSA/DSE before transacting. Fees and settlement timelines may change — verify with your broker.
Sources: DSE FAQs (dse.co.tz/faqs); CSDR Licensed Brokers (csdr.co.tz/brokers); CMSA.