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Local contractors in Tanzania are now able to access capital more easily to implement road infrastructure projects, thanks to the launch of a pioneering financing model through the Samia Infrastructure Bond.
The initiative, spearheaded by the Rural and Urban Roads Agency (TARURA) in collaboration with CRDB Bank, is designed to accelerate road development across rural and urban areas while strengthening the capacity of local contractors.
The bond officially launched on November 29, 2024, by Vice President Dr. Philip Mpango marks a major milestone in infrastructure financing in Tanzania.
It is the first dedicated infrastructure bond in the country and aims to mobilise resources locally to support the government’s road construction agenda under the sixth-phase administration of President Samia Suluhu Hassan.
TARURA’s Chief Accountant, CPA Jacob Nyaulingo, said the idea for the bond was proposed by the Minister of State in the President’s Office (Regional Administration and Local Government), Mohamed Mchengerwa.
Initially, the fundraising target was set at TSh 150 billion, but strong public support pushed collections to TSh 323 billion equivalent to 215.4 percent of the original goal.
“The massive response from Tanzanians was a clear vote of confidence in this initiative,” said CPA Nyaulingo.
“It reflects national trust in infrastructure development and in empowering local players to take a leading role.”he added
Proceeds from the bond, which carries an annual interest rate of 12 percent, are being directed entirely to TARURA-led road projects.
To ensure the swift and transparent disbursement of these funds, a digital financing platform Samia Infrastructure Portal has been developed by TARURA in partnership with CRDB.
The portal allows contractors to apply for loans online without physically visiting TARURA or bank offices.
Instead, contractors submit digital applications that are verified by TARURA’s regional offices before being forwarded to CRDB for final loan processing.
The platform aims to streamline the borrowing process, reduce bureaucratic delays, and enhance financial inclusion.
According to Nyaulingo, the platform supports a wide range of financial products including Bid Guarantees, Performance Guarantees, Advance Payment Guarantees, Retention Guarantees, Certificate Discounting, and a newly introduced Bridge Financing option.
The Bridge Financing service offers immediate working capital to contractors while they await formal contract payments.
Further underscoring the commitment to empower local businesses, CRDB has waived the requirement for collateral for eligible contractors and is offering concessional interest rates of below 15 percent per annum for those who repay on time.
“This is a golden opportunity for local contractors to access affordable financing and deliver projects on schedule and to standard,” Nyaulingo noted.
“It’s about changing the landscape of infrastructure delivery and proving that Tanzanian contractors can perform given the right support.”he added
He added that the bond aligns with the government’s ambition to deepen private sector participation, accelerate the pace of strategic infrastructure projects, and create more economic opportunities for Tanzanians. It also provides a model for innovative financing that could be replicated in other sectors in the future.
“The Samia Infrastructure Bond goes beyond roads it represents a commitment to sustainable development, economic empowerment, and inclusive growth,” said Nyaulingo.
“We are confident this approach will significantly boost the quality of infrastructure and help unlock Tanzania’s full economic potential.”he added
As the country pushes forward with its infrastructure agenda, the Samia Infrastructure Bond is expected to become a key driver of progress mobilising domestic resources, increasing contractor capacity, and ensuring timely delivery of critical road networks.