DSE Shareholders Approve Lower Dividend Amid Profit Decline

Dar es Salaam, Tanzania – Shareholders of the Dar es Salaam Stock Exchange (DSE) yesterday approved a dividend payout of TSh 125 per share for the financial year ended December 31, 2024. The decision was made during the company’s Annual General Meeting (AGM) held in Dar es Salaam.

The approved dividend reflects a 13 per cent decline compared to the previous year’s payout of TSh 145 per share. The DSE board had proposed distributing 70 per cent of its after-tax profit, translating to a total dividend of TSh 2.99 billion, down from TSh 3.45 billion paid the year before.

DSE Group posted a profit after tax of TSh 4.27 billion for the year ended December 2024, representing a 24 per cent decrease from TSh 5.69 billion recorded in 2023.

DSE Chairman Dr. Elinami Minja attributed the decline in profits to reduced listing and transaction fees, particularly for government bonds, following the Bank of Tanzania’s bond reopening policy. He also cited costs related to the construction of new DSE offices as a contributing factor.

The approved dividend is expected to be disbursed to shareholders around July 2025.

Key Performance Highlights

Despite the profit decline, DSE recorded several notable achievements during the fiscal year:

• Total assets grew by 3 per cent to TSh 35.8 billion, up from TSh 34.8 billion the previous year, driven by an increase in short-term deposit investments from operational funds.
• Total revenue dipped by 6 per cent to TSh 11.53 billion, compared to TSh 12.22 billion in the preceding year.
• Treasury bond activity surged, with outstanding bonds rising by 25 per cent to TSh 25.4 trillion by year-end, up from TSh 20.24 trillion in 2023.
• Corporate bonds issued in local currency also rose, from TSh 538 billion in 2023 to TSh 582 billion by December 2024.
• The Fidelity Fund assets grew by 13 per cent to TSh 3.62 billion, up from TSh 3.21 billion the previous year, primarily due to higher fixed deposit investments and profit accumulation.

As the DSE navigates a shifting economic landscape and adjusts to changes in the bond market, the bourse remains focused on consolidating its gains and seeking growth opportunities despite emerging revenue pressures.