Productive Investment Tailored for the Youth

Tanzania’s youth are showing a strong interest in productive investment opportunities, driven by growing financial literacy and digital adoption, as they gradually become more financially included.

Tanzania has made impressive progress in financial inclusion. According to FinScope Tanzania 2023, financial inclusion rose from 65% in 2017 to 76% in 2023. This growth is powered mainly by mobile money. Overall uptake of digital solutions is on the rise; however, mainly young male users leverage the power of mobile money and banking apps. A similar trend can be observed when it comes to digital investment platforms; our young people offer a vast and largely untapped market for these important, long-term, wealth-building tools.

But across the country, investment awareness and uptake remain stubbornly low. Only 3 in 10 Tanzanians know of any investment vehicle, and just 1 in 10 are aware of bills, bonds, or shares (FinScope Tanzania 2023). Youth, 15 to 35 years, make up around a third of Tanzania’s population, and they present the future leaders of this country; it is paramount that the existing gap is addressed for them.

The low uptake of investment awareness is driving youths towards high-risk investments such as forex trading, cryptocurrency trading, and sports betting, which can cause higher capital loss and lower long-term economic potential. According to FinScope Tanzania 2023, 5% of Tanzanians confirmed to have engaged in betting activities in the past 12 months. However, it is important to note that this is a self-reported figure; hence, the actual incidence rate of people betting might be slightly higher, especially considering the continued revenue collection growth reported by TRA for betting companies. In addition, findings show that 10% of Tanzanians are aware of cryptocurrency, which is slightly higher than the awareness of formal capital markets.

Barriers to youths’ uptake of productive investment products include:

• Low awareness and knowledge of productive investments. Only 30% of Tanzanians know of any investment vehicle, and even fewer (about 10%) are aware of bills, bonds, or shares (FinScope Tanzania 2023). Financial literacy is key in bridging the awareness and knowledge gap.
• Language barriers are excluding many Tanzanians from participating in investment platforms. Most platforms operate in English, yet only 27% of Tanzanians can read and write in English compared to 79% in Kiswahili (FinScope Tanzania 2023). This barrier further perpetuates the awareness and knowledge challenge. Embedding financial literacy into platforms such as Hisa Kiganjani, using bite-sized Kiswahili content and gamified learning, can significantly improve accessibility and engagement.
• Traditional investment products have inflexible payment plans. Youth often earn irregularly, making it difficult to commit to traditional lump-sum investments. Micro-investments and flexible “pause-and-resume” products would fit better with youth realities.
• Complex KYC requirements create another barrier for youth onboarding in investment platforms. Simplifying onboarding with digital ID verification and mobile-first solutions could reduce friction.
• Young people rarely see their peers investing, which reinforces the perception that investing is only for elites. Building peer communities around apps, where users share milestones, would improve visibility and trust.
• Investment platforms are challenged with geographical reach. Rural youth often lack exposure to opportunities. Leveraging the money agents as on-the-ground investment touchpoints could make a difference.
• Youth investment behaviour is shaped by the appeal of tangible, short-term assets like smartphones, cars, and houses, which signal prestige and improved living standards. In contrast, financial assets such as bonds, bills, and shares are perceived as intangible and long-term, making them less attractive to young investors. To increase the utility and appeal of these instruments, initiatives such as enabling UTT and similar investments to be used as collateral can help unlock short-term value and drive youth participation in formal investment markets.

Despite these challenges, there are new positive emerging trends. Digital platforms are opening doors and, encouragingly, young people are stepping up. According to the Dar es Salaam Stock Exchange (DSE), the 25–35 age group leads in digital investing, making up about 47% of all digital investors. Those under 25 years make up 24%. Key examples of this momentum worthy of recognition include:

• Digital investment platforms are attracting the youth. DSE Hisa Kiganjani and Mobile Trading Platform data show that young investors aged 21–30 already make up a large percentage of all registrations. Recently, the DSE Hisa Kiganjani has been integrating FSPs to offer stock investment options within the fingertips of consumers, simplifying consumer KYC and micro-investments. Mixx by YAS and NMB were the recent FSPs to integrate Hisa Kiganjani inside their respective mobile app, offering stock market access in Kiswahili and English.
• Investment schemes are becoming relevant to the youth. Mpesa’s M-Wekeza and UTT AMIS are providing accessible micro-productive investments to support funds where one can start with as little as TZS 10,000 and allow for irregular investments that align with the informal nature of youth income sources. Additionally, the strong demand for instruments such as the Samia Infrastructure Bond, which was oversubscribed by 215%, highlights the growing interest of the youth in formal investments. Notably, 94% of the TZS 325 billion raised was mobilized through CRDB Bank’s SimBanking app, indicating the power of digital channels in attracting retail investors, including young retail investors.
• An increase in financial education and literacy is pushing youths towards productive investments. For example, Personal Finance Hub Tanzania is equipping young people with financial skills through coaching, literacy courses, and field visits on social media. Mipango app is another digital alternative to traditional merry-go-round savings schemes, which allows users to join savings circles, make contributions, and receive payouts to achieve their financial goals.

These examples show a powerful truth: youth are not passive bystanders but active participants shaping Tanzania’s financial markets.

There are clear actions that the financial sector can take, including:

• Capacitate youth MSMEs to leverage productive investment schemes and platforms such as the DSE Enterprise Acceleration Program (DEAP), Enterprise Growth Market (EGM), and Endeleza (SME Acceleration Program) to raise capital.
• Leverage tech platforms such as Hisa Kiganjani, Zan Invest, and crowdfunding pilots to meet youth where they already are.
• Design youth-focused investment products with flexible deposit options and liquidity features that align with the financial needs and behaviours of young investors.
• Promote visibility by celebrating youth investors through competitions, recognition campaigns, and peer networks.
• Teach by doing, embedding literacy at the point of transaction so that learning and investing happen side by side.

Tanzania has everything it needs: youthful ambition, digital reach, and enabling policy. Crucially, youth are already showing up — opening accounts, joining apps, and exploring funds.

The opportunity now is to double down: create products that reflect their realities, build on their energy, and amplify their successes. If banks, markets, and policymakers rise to the challenge, Tanzania’s youth-led MSMEs won’t just be tomorrow’s investors; they will be the drivers of the country’s inclusive economic growth.

For more insights and lessons that can support the development of productive investment products in Tanzania, FSDT and DSE will soon be publishing a case study that explores the impact of past interventions with the DSE, focusing on both the supply and demand sides of the market.

• On the supply side, the study will assess initiatives designed to boost local MSME participation in the capital markets—specifically DSE Enterprise Acceleration Program (DEAP), Enterprise Growth Market (EGM), and Endeleza (SME Acceleration Program).
• On the demand side, it will evaluate how Mobile Trading Platforms have influenced retail investor registration and trading behaviour.

Stay tuned on our blog and social media platforms for further updates on the case study.