Tanzania has recorded a major milestone in international financial markets after the International Finance Corporation (IFC) listed its first Tanzania shilling-denominated bond on the London Stock Exchange (LSE), unlocking long-term financing for businesses through NMB Bank.
The bond, valued at US$100 million (approximately TZS 262.5 billion), is expected to strengthen NMB’s capacity to provide long-term loans to small and medium-sized enterprises (SMEs), supporting business expansion, job creation and private sector growth.
A key component of the financing will focus on supporting women entrepreneurs, with 20 percent of the funds, equivalent to TZS 52.5 billion, allocated specifically to women-owned businesses.
Speaking after the bond listing ceremony in London, NMB Bank Managing Director and Chief Executive Officer, Ruth Zaipuna said the facility would increase the bank’s ability to provide businesses with long-term financing needed to expand operations and create more economic opportunities.
She said the funding would help address challenges faced by SMEs, particularly access to affordable capital, while strengthening their contribution to Tanzania’s economic growth.
Finance Minister Ambassador Khamis Mussa Omar said the successful listing reflected growing international confidence in Tanzania’s economy and supported the country’s development priorities under Development Vision 2050.
The bond’s issuance in Tanzanian shillings instead of foreign currency is expected to reduce exchange-rate risks for businesses that will access the financing. Borrowers will be protected from uncertainties caused by fluctuations in foreign currency values, making repayment planning more predictable.
The transaction marks another step in NMB’s engagement with international capital markets. In 2023, the bank raised more than TZS 400 billion through a social bond designed to support projects with positive economic and social impact.
The latest development highlights Tanzania’s growing ability to attract international investment through innovative financial instruments while directing more resources towards businesses that support employment and economic transformation.
For SMEs and women entrepreneurs, the bond provides an opportunity to access financing that can help them grow, improve productivity and contribute to a more inclusive economy.
