Tanzania has taken a significant step towards integrating its capital markets with the global financial system after its first offshore bond denominated in Tanzanian shillings (TZS) was listed on the London Stock Exchange, a move expected to widen access to long-term financing for businesses and strengthen investor confidence in the country's economy.
The USD 100 million bond, equivalent to approximately TZS 262.5 billion, was issued by the International Finance Corporation (IFC), a member of the World Bank Group, using the Tanzanian shilling. It is the first offshore bond linked to Tanzania's local currency to be listed on an international stock exchange.
The proceeds have been channelled to NMB Bank Plc, which will use the funds to expand lending to micro, small and medium-sized enterprises (MSMEs).
About TZS 52.5 billion, representing 20 percent of the facility, has been specifically allocated to women-owned businesses.
Speaking after officiating the listing by ringing the London Stock Exchange's closing bell, Finance Minister Khamis Mussa Omar said the transaction marks a new chapter in Tanzania's engagement with international capital markets and supports the country's long-term development ambitions under Vision 2050.
"This is an important milestone in Tanzania's journey towards participating more actively in global capital markets using our own currency. The listing reflects the confidence international financial institutions have in our economy and in the reforms we have undertaken in the financial sector," he said.
Mr Omar said the listing on one of the world's leading financial markets enhances Tanzania's international profile and could improve the country's ability to mobilise capital at competitive borrowing costs.
"Our focus is not only on the successful placement of the bond in international markets but also on ensuring that the financing translates into tangible benefits for the private sector, particularly MSMEs, which are key drivers of economic growth and employment," he said.
NMB Bank Chief Executive Officer Ruth Zaipuna said the financing will enable the bank to extend more long-term credit to small and medium-sized businesses, helping to accelerate private sector growth, investment and job creation.
She noted that the latest transaction builds on the bank's previous success in accessing international capital markets.
"In 2023, NMB raised more than TZS 400 billion through a social bond listed in London. This latest transaction has secured an additional TZS 262.5 billion through the first offshore bond denominated in Tanzanian shillings," Ms Zaipuna said.
World Bank Vice President and Treasurer Jorge Familiar said the IFC's support reflects its commitment to promoting inclusive economic growth in Tanzania.
He said the institution expects the financing to generate broad economic and social benefits, including the creation of between 13,000 and 20,000 jobs, while providing international investors with an opportunity to participate in Tanzania's growing private sector.
Beyond the immediate financing, the transaction is seen as an important test of international investor appetite for Tanzanian shilling-denominated assets.
A successful performance could pave the way for similar issuances in the future, diversifying funding sources for the country's financial institutions and reducing reliance on foreign currency borrowing.
According to the World Bank Group, the IFC has invested more than USD 1.6 billion in Tanzania across infrastructure, agriculture, energy and capital markets, supporting the government's strategy to increase private sector participation in economic development.
Financial analysts say the offshore listing represents another step in the maturation of Tanzania's capital markets, offering local institutions access to international investors while promoting the use of the Tanzanian shilling in cross-border financing.
