Plans underway to set up international financial centre

DAR ES SALAAM: THE government, through the Tanzania National Business Council (TNBC), has announced plans to establish an International Financial Centre (IFC) aimed at attracting capital and boosting investment for economic growth.

The development was revealed during the third meeting of the TNBC Finance Working Group, which brought together public and private sector stakeholders at the Treasury Hall in Dar es Salaam yesterday.

Speaking at the meeting, Permanent Secretary for the Ministry of Finance and Chairperson of the Working Group, Dr Natu El Maamry Mwamba, said the initiative is still at an early stage and has been presented to TNBC members as part of implementing government directives.

She explained that the proposed centre will serve as a comprehensive platform to showcase investment opportunities across key sectors, including mining and natural gas.

The initiative is also expected to enable local investors to access capital more easily, similar to how foreign firms leverage international financing to invest in Tanzania.

Dr Mwamba said institutions under the Ministry of Finance are ready to fast track the initiative in collaboration with other stakeholders, noting that the move is expected to spur economic growth, improve the utilisation of natural resources, and position Tanzania as a regional investment hub.

She added that a TNBC appointed committee comprising stakeholders from various sectors has already proposed key implementation steps, including issuing an official government notice through the Government Gazette and identifying a suitable location for the centre.

The committee has also recommended the development of laws, regulations and guidelines to govern the operations of the financial centre.

Dr Mwamba noted that several countries have achieved notable economic gains through similar initiatives. She cited Rwanda, which ranks among Africa’s leading financial centres and has created about 50,000 jobs while generating significant revenue.

She also pointed to Kenya, whose financial centre, established in recent years has already contributed to approximately 26,000 jobs under its long-term development strategy.

Globally, countries such as the United States, the United Kingdom, the United Arab Emirates (Dubai), Hong Kong, and Malaysia have recorded substantial economic progress through international financial centres.

Despite delays in implementing the initiative, Tanzania remains wellpositioned to attract investment due to its strategic geographical location, abundant natural resources, including minerals and gas and a stable business environment supported by peace and security.

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The proposal recommends Dar es Salaam as the preferred location, given its status as the country’s commercial hub with a high concentration of investors, financial institutions, and business activity.

TNBC Executive Secretary Dr Godwill Wanga said the meeting reached several key resolutions, including improving the investment climate, expanding health insurance coverage, and introducing crop insurance to strengthen economic resilience.

He also highlighted ongoing tax reforms being undertaken by a Presidential Commission aimed at removing business bottlenecks and attracting more investment.

In addition, the meeting discussed strategies to encourage Tanzanians to invest in government bonds and emphasised the importance of creating a transparent and reliable environment for investors once the financial centre is established.

Participants also underscored the need to issue national identification numbers to all citizens to enhance tax compliance and broaden the revenue base.

The meeting further called for increased investment awareness programmes led by both public and private sector stakeholders.

Speaking on behalf of the private sector, Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) President Vicent Minja said stakeholders had proposed measures to improve the business environment and attract more investment.

He stressed the importance of ensuring the centre operates independently, similar to Dubai’s IFC, to build investor confidence.

Other recommendations included encouraging local entrepreneurs to participate more actively in investments through capital markets.

A member of the working group and Chief Executive Officer of the Public Private Partnership Centre (PPPC), David Kafulila, proposed inviting experts from the Dar es Salaam Stock Exchange (DSE) to the next meeting to provide further education on capital markets.