IFC’s Landmark Shilling Bond Raises $100 Million for Tanzania’s Small Businesses
Record-breaking offshore bond issuance signals global investor confidence in Tanzania’s economy and Vision 2050 ambitions
LONDON, United Kingdom – The International Finance Corporation (IFC), a member of the World Bank Group, and the Government of Tanzania marked a major milestone at the London Stock Exchange this week with the celebration of IFC’s inaugural Tanzanian shilling-denominated offshore bond issuance, valued at TZS265.2 billion (US$100 million equivalent).
The transaction is the largest Tanzanian shilling-denominated bond ever issued in international capital markets, underscoring growing global investor confidence in Tanzania’s economic prospects and its private sector-led development agenda.
Proceeds from the bond will support a local currency financing facility equivalent to US$100 million for NMB Bank Plc, enabling the bank to expand lending to micro, small and medium-sized enterprises (MSMEs) across Tanzania, including women-owned businesses that often face barriers to accessing affordable finance.
The issuance represents a significant step in IFC’s efforts to deepen local capital markets and reduce foreign exchange risks for businesses by increasing access to local currency financing. Since FY21, IFC has provided local currency financing in more than 65 currencies, helping businesses in emerging markets access funding without exposure to volatile exchange rate movements.
Speaking at the London Stock Exchange ceremony, Dr Khamis M. Omar, Minister of Finance of the United Republic of Tanzania, described the transaction as a powerful endorsement of Tanzania’s economic reforms and long-term growth strategy.
“This transaction is a strong vote of confidence in Tanzania’s economy and our reform agenda. By connecting international capital with local businesses through long-term local currency financing, it supports entrepreneurship, job creation and private sector growth – key drivers of Tanzania’s Vision 2050 ambition to become a competitive trillion-dollar economy,” said Omar.
The investment is expected to strengthen Tanzania’s private sector by boosting financing to MSMEs, which are widely regarded as the backbone of the country’s economy through their contribution to employment, innovation and wealth creation.
Mary Porter Peschka, IFC Division Director for Eastern Africa, said the bond demonstrates how innovative financial instruments can channel global capital into local development priorities.
“IFC’s inaugural Tanzanian shilling offshore bond represents an important step in connecting international investors with Tanzania’s growth story. By mobilising global capital into local currency financing for MSMEs, we are helping businesses invest, grow and create jobs while advancing the development of Tanzania’s capital markets,” she said.
“This transaction demonstrates the power of innovative financing solutions to unlock private sector-led growth and economic opportunity.”
For NMB Bank, one of Tanzania’s leading financial institutions, the funding will provide a significant boost to its efforts to support entrepreneurs, small businesses and women-led enterprises with long-term financing tailored to local market conditions.
Ruth Zaipuna, Managing Director and Chief Executive Officer of NMB Bank Plc, said the initiative aligns international investment with Tanzania’s development priorities.
“This milestone demonstrates the value created when global capital is aligned with national development priorities. NMB Bank is honoured to channel the equivalent of US$100 million in long-term shilling financing to MSMEs, including women-owned businesses, enabling them to invest, grow and create jobs without foreign-exchange risk,” she said.
“It is a responsibility we carry with pride as we help turn Tanzania’s Vision 2050 into opportunity for more people.”
The bond issuance is also expected to contribute to the broader development of Tanzania’s financial sector by attracting international investors to local currency instruments and creating new pathways for financing underserved sectors of the economy.
As Tanzania pursues its Vision 2050 agenda, policymakers and development partners see expanded access to affordable local currency finance as a critical ingredient for accelerating industrialisation, supporting entrepreneurship and driving sustainable economic growth.
The landmark transaction highlights the growing role of innovative capital market solutions in unlocking investment and advancing economic transformation across Africa.
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