Capital reforms open new financing window for public institutions

ARUSHA: Tanzania’s capital market reforms have opened a new window for public institutions to mobilise long-term financing for development projects, Stanbic Bank Tanzania has said.

The reforms, which include opening Treasury bills and government bonds to foreign investors and introducing a Sovereign Yield Curve, are expected to broaden the pool of capital available to public institutions beyond government support.

The developments was highlighted on Monday as the fourth Chairpersons and CEOs Forum opened at the Arusha International Conference Centre, bringing together more than 700 board chairpersons and chief executives of public institutions.

The Bank of Tanzania on August 6 announced that foreign investors could access government securities through approved Central Depository Participants, while the following day Governor Emmanuel Tutuba launched the Sovereign Yield Curve, providing daily pricing benchmarks for government securities with maturities of up to 25 years.

Additionally, the government has also signalled plans for public institutions to list on the Dar es Salaam Stock Exchange, potentially allowing Tanzanians to own shares in the institutions.

Speaking at the forum, Stanbic Bank Tanzania Head of Client Coverage, Corporate and Investment Banking, Elias Ngunangwa, said the reforms provide public institutions with new financing options as Tanzania pursues the goals of Dira 2050.

“Dira 2050 sets out a clear ambition for Tanzania to become an upper middle income country with a one trillion-dollar economy by 2050. Public institutions are central to that journey, in energy, transport, water, finance and beyond,” he said.

He added, “Government’s reforms are creating a stronger environment for investment and long-term capital. As financial institutions, our responsibility is to bring our expertise, our networks and our balance sheet alongside that national ambition. We are proud to work with Ggovernment in delivering it.”

He said the deeper market could connect institutions with domestic, regional and international investors while supporting the financing of projects in sectors including energy, transport and water.

“Tanzania now has a market that rewards strong institutions, and many of ours are ready to meet it. Investors look for good governance, clear reporting and well-prepared projects, and government’s reforms continue to strengthen all three across the public sector. Our role is to help institutions turn those strengths into financing. That means shaping projects, structuring funding and connecting institutions with investors at home, across the region and around the world,” he added.