Evaluating Tanzania’s Compliance with International Organization of Securities Commissions Standards on Securities Market Regulation

Abstract

Tanzania’s alignment with the objectives, principles, and Multilateral Memorandum of Understanding (MMoU) of the International Organization of Securities Commissions (IOSCO) remains an ongoing process. This study provides a comprehensive assessment of Tanzania’s compliance with international securities market standards, focusing on the IOSCO Principles as the global benchmark. Employing a doctrinal legal methodology, complemented by empirical legal analysis, the research examines the country’s legal and regulatory framework by analyzing the roles of key institutions, including the Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE). Key legal instruments such as the Capital Markets and Securities Act and the Companies Act are evaluated for their effectiveness in establishing licensing, disclosure, compliance, and enforcement mechanisms critical to market integrity and investor protection. The findings reveal significant shortcomings in Tanzania’s legal and institutional landscape, particularly regarding enforcement capacity, technological infrastructure, cross-border regulatory cooperation, and investor awareness. These gaps limit the market’s ability to fully meet international standards of transparency, efficiency, and fairness. To overcome these challenges, the study recommends strengthening institutional capabilities, revising legal frameworks, investing in market infrastructure, and enhancing collaboration with regional and international regulators. Additionally, improving public awareness and investor education is vital to fostering greater participation and market confidence. While meaningful progress has been achieved, sustained reforms and capacity-building are essential for full compliance with global standards and for driving inclusive, long-term capital market development and economic growth.