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Tanzania has taken a major step in expanding its footprint in global capital markets after its first-ever offshore bond issued in Tanzanian shillings was listed on the London Stock Exchange, a move expected to strengthen access to international financing and support private sector growth.
The TZS 262.5 billion (US$100 million) bond was issued by the International Finance Corporation (IFC), a member of the World Bank Group, and has been channelled through NMB Bank Plc to provide long-term financing for micro, small and medium-sized enterprises (MSMEs).
The landmark transaction marks the first time a bond issued outside Tanzania using the local currency has been listed on the London Stock Exchange, one of the world’s leading financial markets.
The funds will support NMB’s lending capacity to businesses, with TZS 52.5 billion (20 percent of the facility) earmarked specifically to support women entrepreneurs.
Speaking during the launch ceremony in London, Finance Minister Ambassador Khamis Mussa Omar said the listing represents a significant milestone in Tanzania’s efforts to deepen its participation in international capital markets.
He said the transaction would help improve investor confidence, widen sources of capital and support implementation of the country’s long-term development agenda under Tanzania’s Development Vision 2050.
“This is the beginning of an important journey for Tanzania to actively participate in global capital markets using our own currency. The listing demonstrates confidence from international financial institutions in our economy and financial sector reforms,” Ambassador Omar said.
The minister said listing the bond on the London Stock Exchange provides Tanzania with greater international visibility and could improve the country’s ability to attract financing at competitive rates.
He added that the focus would be on ensuring the financing translates into tangible benefits for businesses, particularly MSMEs, which remain a key driver of employment and economic activity.
“This is not only about the success of the bond in international markets, but also about ensuring that its impact is felt by the private sector, especially small and medium-sized businesses,” he said.
NMB Bank Chief Executive Officer Ruth Zaipuna said the financing would help the bank expand access to longer-term credit for businesses and contribute to private sector development.
She said the transaction was the second time NMB had accessed financing through the London Stock Exchange, following a 2023 bond issuance that raised more than TZS 400 billion.
“This facility will enable us to provide financing that supports business growth, job creation and increased economic activity,” Ms Zaipuna said.
The bond is expected to provide businesses with improved access to capital, allowing them to expand operations, increase production and contribute more significantly to the economy.
World Bank Vice President for Treasury Jorge Familiar said the partnership with Tanzania reflects a shared commitment to promoting inclusive economic growth.
He said the success of the bond should be measured beyond the amount of money raised, focusing instead on the economic opportunities created through increased access to finance.
The investment is expected to benefit between 13,000 and 20,000 people, including women, through employment opportunities and expanded business activities.
The listing comes as Tanzania seeks to strengthen its financial sector, attract more international investors and develop alternative financing mechanisms to support economic transformation.
Through IFC, the World Bank Group has invested more than US$1.6 billion in Tanzania in strategic sectors including infrastructure, agriculture, energy and capital markets.
Analysts say the bond listing sends a positive signal about Tanzania’s growing integration into global financial markets while providing a new model for mobilising international capital using the local currency.
