Beyond tradional capital mobilisation

DAR ES SALAAM: RECENT bond issuances send a compelling message: Tanzania has investors willing to commit substantial capital.

The question is whether institutions are developing credible projects and financing structures capable of attracting it.

Too often, development financing follows a familiar sequence: identify a project, estimate its cost, seek a budget allocation or bank loan and postpone implementation when funding falls short.

These sources remain essential, but they should not be the only options.

The evidence is in the market

Recent corporate bond results demonstrate strong investor appetite for well-structured investment opportunities.

I&M Bank’s Hatua Bond attracted 161.38bn/- in applications against an initial offer of 20bn/-, with 100bn/- accepted.

The iTrust Finance Bond attracted approximately 114.12bn/- against an initial offer of 15bn/-, while Equity for Tanzania (EFTA) received 33.04bn/- against an initial offer of 15bn/-.

These are not isolated fundraising achievements. Together, they signal investors’ willingness to evaluate credible issuers and investment propositions.

Government securities reinforce the message

The Bank of Tanzania’s results for the 12.75 per cent, 25-year Treasury bond auction held on October 15, 2026, provide another indicator of domestic investor participation.

Government securities offer an important benchmark, although sovereign and corporate debt carry different risks. Strong subscription to one instrument does not mean capital is automatically available to every institution.

Investors weigh creditworthiness, yield, liquidity, maturity and confidence in repayment.

From funding requests to investment propositions

The mindset must shift from asking, “Where can we obtain money?” To asking, “How can we structure this project to attract appropriate financing and repay it sustainably?”

A hospital could consider a properly governed endowment or project financing for suitable facilities.

A shipping company might evaluate leasing, asset financing or a corporate bond backed by viable operations.

A local authority could assess revenue-generating markets or terminals through legally permissible project financing or publicprivate partnerships.

Each approach requires feasibility studies, reliable cash-flow forecasts, sound governance and the necessary approvals.

What institutional engagements reveal

Through my professional engagements with public institutions, government-owned enterprises and development stakeholders, I have seen considerable ambition to deliver strategic projects.

Many organisations possess valuable assets, development plans and promising opportunities. Yet the distance between a promising proposal and a bankable transaction is often substantial.

Technical feasibility, financial modelling, revenue analysis, risk allocation and clearly defined institutional responsibilities are frequently the missing links.

Alternative financing must therefore be considered during strategic planning, rather than after conventional funding has been exhausted.

Institutions need prioritised investment pipelines, not merely lists of projects awaiting resources.

A practical starting point is to screen proposed investments against four questions: Is there a demonstrated public or commercial need?

Can the project generate measurable economic or financial value?

Who bears construction, operating and demand risks?

Which approvals must be secured before financing is sought?

Answering these questions early can prevent costly delays and help institutions distinguish projects suitable for market financing from those that rightly depend on budgetary support.

This discipline also gives investors greater confidence in project preparation.

Investment readiness begins with leadership

Boards and management teams should distinguish activities requiring public funding from projects capable of generating revenue or supporting blended financing.

They should strengthen financial reporting, assess repayment mechanisms and understand investor expectations. A bond is a repayment obligation, not free money.

Financing costs must be weighed against expected benefits, and debt servicing must not undermine essential public services.

Strong governance, procurement compliance, borrowing approvals and securities regulation are indispensable.

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Sometimes, the responsible decision is to improve a project before seeking investors or select a different financing instrument altogether.

Capital markets as development partners

Appropriately licensed capital markets intermediaries can help bridge the gap between financing needs and investable opportunities.

Their role includes assessing funding options, coordinating professional advisers, testing investor appetite and supporting issuance processes.

Domestic savings channelled through pension and insurance institutions, banks, collective investment schemes, companies and individuals can support productive investment when instruments match investors’ risk and return requirements.

Capital markets should complement, not displace, government budgets, commercial lending and development partnerships.

Financing Dira 2050 differently

Tanzania Development Vision 2050 (Dira 2050) and the Fourth Five-Year Development Plan (FYDP IV) call for sustained investment in transport, healthcare, water, agriculture, industry and other productive sectors.

Delivering these ambitions requires a stronger culture of investment readiness.

Institutional success should be measured not only by budgets requested or allocated, but also by viable projects prepared, risks managed, financing responsibly mobilised and development outcomes achieved.

The question we should be asking

The lesson from recent bond issuances is not that every project can raise capital. It is that Tanzania’s institutions should stop treating traditional funding channels as the end of the conversation.

We must move from waiting for resources to preparing projects worthy of investment, and from viewing capital markets merely as trading platforms to recognising their contribution to long-term development finance.

As we advance towards Dira 2050, the question is not only, “Where will the money come from?” It is also, “What must our institutions do differently to attract it responsibly?”

James Masatu Manyama is Head of Alternative Financial Services at TIB Rasilimali Limited.

The views expressed are personal and do not necessarily represent the official position of TIB Rasilimali Limited.