By Alfred Zacharia
Tanzanian Small and Medium Enterprises (SMEs) now have a fresh source of affordable financing with the launch of the Tanzania Commercial Bank (TCB) Stawi Bond.
The five-year bond offers a competitive 13.5 percent annual interest rate and aims to channel local savings into productive businesses while promoting financial inclusion across the country.
Deputy Prime Minister and Minister of Minerals, Dr Doto Biteko, in a speech read by Deputy Permanent Secretary Elijah Mwandumbya, described the launch as a historic opportunity for citizens to participate in national investment.
He praised TCB for taking a bold step with the initiative, which supports the government’s efforts to deepen and expand Tanzania’s capital markets.
“This bond is not just a financial instrument but a platform to boost citizen participation, reduce reliance on foreign borrowing, and enhance government revenues,” Dr Biteko said.
CMSA Chief Executive Officer Nicodemus Mkama confirmed that the bond has received full regulatory approval.
He called it a milestone for the country’s financial markets and a practical tool for empowering SMEs.
Mkama noted that Tanzania’s capital markets have grown by 75 percent in four years, reflecting investor confidence and market innovation.
“The Stawi Bond is the first issued by a government-owned bank, under the Alternative Project Financing Strategy, encouraging state institutions to tap into capital markets rather than rely solely on budget allocations,” Mkama said.
TCB Managing Director Adam Mihayo said proceeds from the bond will expand SME financing, support low- and middle-income citizens with accessible loans, and reduce reliance on costly foreign borrowing.
“The bond strengthens our ability to support small-scale traders and entrepreneurs, while broadening financial inclusion for Tanzanians,” Mihayo said.
He added that investors can earn interest over five years with no tax deductions.
Dar es Salaam Stock Exchange CEO Peter Nalitolela said investors can subscribe via TCB and DSE mobile apps.
He urged Tanzanians and private sector players to back SME financing, noting that the initiative aligns with national policies aimed at long-term financing and inclusive economic growth.
“Through this bond, TCB will increase its liquidity and capital base, enabling it to serve more entrepreneurs and citizens while promoting inclusive economic development,” Nalitolela said.
