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Stanbic Bank Tanzania has strengthened its role in advancing housing finance and capital market development after serving as Lead Arranger for the Makazi Bond issued by First Housing Finance Tanzania (FHF).
The bond marks a significant step in mobilising domestic investment to support housing, a sector closely linked to economic productivity, job creation, and improved living standards.
FHF, Tanzania’s first dedicated non-bank mortgage lender, has positioned itself as a key player in expanding homeownership across the country.
As of March 31, 2025, the institution accounted for 5.3 percent of the national mortgage market, having extended TZS 36 billion in mortgage loans to hundreds of Tanzanians.
The Makazi Bond is structured to attract long-term funding into the housing sector. Its initial TZS 5 billion tranche, coupled with a greenshoe option of up to TZS 3 billion, signals rising investor confidence in financial instruments that combine stable returns with developmental impact.
Speaking at the bond’s launch, Stanbic Bank Tanzania Chief Executive Mr. Manzi Rwegasira said capital markets must be strategically leveraged to support national development priorities.
“Housing goes beyond providing shelter. It forms the foundation of strong families, stable communities, and sustainable economic growth. Well-structured capital market instruments can help address real needs in the economy,” he said.
Proceeds from the bond will enable FHF to expand mortgage lending, improve access to affordable housing, and stimulate employment across the construction sector and its supply chains.
The initiative is also expected to deepen financial inclusion by enabling more Tanzanians to access formal housing finance.
Stanbic Bank’s Head of Corporate and Investment Banking, Ms. Ester Manase, said strong governance and disciplined structuring are essential for building investor confidence and strengthening local capital markets.
“For markets to grow sustainably, financial instruments must be transparent, accessible, and aligned with long-term economic outcomes. The Makazi Bond demonstrates how private capital can be mobilised responsibly to support development while delivering value to investors,” she said.
Ms. Sarah Mkiramweni, Senior Vice President for Debt Capital Market and Distribution, noted that the issuance aligns with Tanzania’s Vision 2050, which emphasises inclusive growth, shared prosperity, and improved social wellbeing.
She added that housing finance remains a critical driver of urban development, household stability, and long-term productivity.
Stanbic Bank Tanzania has invited both local and international investors to participate in the Makazi Bond, offering an opportunity to earn competitive returns while contributing to national development.
The bank continues to play a leading role in structuring innovative financial solutions that link capital to impact, reinforcing the growth of Tanzania’s capital markets and supporting the country’s broader economic transformation.