Samia bond launch this Friday

DAR ES SALAAM: THE Samia Infrastructure Bond, aimed at funding road upgrades under the Tanzania Rural and Urban Roads Agency (TARURA), will officially launch this Friday, says the CMSA.

The CMSA’s Public Relations and Education Manager, Mr Charles Shirima, said on Wednesday that the bond developed by CRDB Bank will be auctioned in Dar es Salaam, without providing further details.

“Samia Infrastructure Bond, under TARURA, is designed to raise funds for upgrading rural and urban road networks,” he said.

The bond is a crucial step towards improving the country’s road infrastructure, particularly in rural and urban areas.

By raising funds for the TARURA, the bond aims to enhance transportation networks, fostering economic growth and development across the country.

The initiative is expected to drive progress in infrastructure, creating job opportunities and improving access to essential services for communities.

A financial analyst Kelvin Msangi, said the innovative corporate bond, developed by CRDB, is specifically designed to address the country’s critical infrastructure challenges.

“The Samia Infrastructure Bond aims to bridge these gaps by providing contractors with immediate working capital, enabling timely project launches and uninterrupted progress,” Mr Msangi, also a Daily News columnist, said yesterday.

He said the with a principal amount of 150bn/-, is poised to drive transformative socio-economic development in the country.

The bond Issued at par value with a fixed annual interest rate of 12 per cent has a maturity period of five years and offers quarterly coupon payments.

“This structure ensures consistent and predictable returns, making it an attractive option for both domestic and international investors while aligning with the country’s broader national development priorities,” Mr Msangi said.

The infrastructure development has been central to the country’s economic agenda, but funding gaps often stall progress.

Economically, Mr Msangi predicted that the bond is expected to significantly boost the country’s growth, contributing to a 0.8 per cent to 1.5 per cent increase in GDP by improving trade efficiency and reducing logistics costs by up to 25 per cent.

ALSO READ: Azania unleashes 30bn/- bond for strategic projects

The bond is projected to finance the development of some 1,500 kilometres of new or upgraded roads, improving rural connectivity and reducing travel times by up to 50 per cent.

These projects will stimulate job creation, with estimates indicating the generation of 15,000 to 20,000 jobs in construction, logistics and related sectors, providing essential socio-economic uplift to communities nationwide.

For TARURA-certified contractors, the bond will address critical liquidity challenges, potentially increasing cash flow by 40 per cent, reducing project delays by a similar margin and supporting 400 to 600 firms, thereby accelerating infrastructure development and ensuring timely project completion.