Tanzania has reached a landmark milestone in its capital markets development following the listing of the International Finance Corporation’s (IFC) inaugural offshore Tanzanian Shilling-denominated bond on the London Stock Exchange (LSE), the first transaction of its kind for the country and the East Africa region.
The landmark bond, which raised TZS 262 billion, will provide long-term Tanzanian Shilling financing to NMB Bank Plc, enabling the Bank to expand financing to micro, small and medium enterprises (MSMEs), women-led businesses, farmers and entrepreneurs across Tanzania.
The transaction represents a significant step in positioning Tanzania on the global capital markets stage, demonstrating increasing international investor confidence in the country’s economic fundamentals, financial institutions and long-term growth prospects. It also reinforces NMB Bank’s role as a leading financial institution capable of mobilising global capital to support national development priorities.
Speaking during the listing ceremony at the London Stock Exchange, NMB Bank MD& CEO said that ‘the transaction marks a defining moment for Tanzania’s financial sector, creating a new pathway for international investment while expanding access to long-term local currency financing for the private sector’.
Unlike foreign currency borrowing, the Tanzanian Shilling-denominated financing enables businesses to invest and grow without exposure to foreign exchange risk, supporting greater financial resilience and long-term economic sustainability.
The listing comes at a pivotal moment as Tanzania embarks on the implementation of the Tanzania Development Vision 2050, which places strong emphasis on private sector-led growth, industrialisation, innovation and sustainable economic transformation. Mobilising long-term capital through innovative financial instruments will be essential to achieving these national aspirations.
The London Stock Exchange is one of the world’s leading international capital markets and has established itself as a premier venue for offshore local currency bonds. The successful listing of Tanzania’s inaugural offshore Tanzanian Shilling bond places the country alongside other emerging economies that have successfully accessed international capital through local currency issuances, further strengthening Tanzania’s profile within global financial markets.
For NMB Bank, the transaction reflects its continued commitment to delivering innovative financial solutions that support inclusive economic growth. As Tanzania’s leading bank for SMEs, NMB will deploy the financing to expand lending to productive sectors of the economy, helping businesses invest, create employment and contribute to the country’s long-term development.
The milestone was celebrated at the London Stock Exchange in the presence of Tanzania’s Minister for Finance, H.E. Ambassador Khamis Mussa Omar; IFC East Africa Regional Director, Mary Porter Peschka; London Stock Exchange Chief Executive Officer, Julia Hoggett; representatives of the World Bank Group, NMB Bank and other strategic partners.
Beyond the immediate financing, the transaction sends a powerful signal to global investors that Tanzania is emerging as an attractive destination for long-term investment and innovative capital market solutions. It represents not only a first for Tanzania, but also a foundation for future international capital market transactions that will support the country’s economic transformation and reinforce its position as a competitive investment destination in Africa.