The Respondent Reporter
Tanzania's Minister for Finance, Mwigulu Nchemba, has urged financial institutions across the country to prioritize productive investments in financial and capital markets to help achieve the government's revenue targets.
Speaking at the ceremony marking the listing of Azania Bank’s bonds on the Dar es Salaam Stock Exchange (DSE) yesterday, Nchemba emphasized the importance of establishing sustainable markets capable of attracting foreign capital and driving the growth of the financial sector.
"We need markets that not only foster investment but also promote sector development," he stated.
Nchemba described the bond listing as a significant milestone for Tanzania's modern economy, underscoring its role in promoting transparency and accountability within the financial system.
He further encouraged other institutions to adopt innovative strategies similar to Azania Bank’s successful bond issuance, which mobilized crucial resources for the bank.
“The bond listing enhances liquidity and strengthens the Dar es Salaam Stock Exchange,” he added.
The Minister also highlighted the bond market’s role in supporting the National Financial Inclusion Strategy, urging investors to take advantage of the high-yield opportunities available. This, he noted, would help broaden access to financial services across the country.
Nicodemus Mkama, CEO of the Capital Markets and Securities Authority (CMSA), confirmed that the bond issuance received approval on September 26 after Azania Bank met all the necessary CMSA requirements.
Mkama expressed pride in the success of the bond, noting a subscription rate of 210.9 percent, raising 63.27 billion Tanzanian shillings—well beyond the original target of 30 billion. He highlighted that 70 percent of the subscriptions came from retail investors, while 30 percent were from institutional investors. Local investors made up an overwhelming 98.4 percent of participants.
The CMSA CEO attributed the bond's success to strong government policies, which have helped strengthen Tanzania’s capital markets, attracting both local and international investors.
“With continued leadership and innovative strategies, Tanzania is well-positioned for further economic growth and broader access to financial services,” he noted.
Mkama emphasized that the bond listing event marked another step in the growing strength of Tanzania’s capital markets, noting that the country’s financial sector continues to be a magnet for investors from both domestic and international markets.
