TNBC to establish international financial services centre
TANZANIA: THE National Business Council (TNBC), through its finance working group, is laying the groundwork to establish an International Financial Services Centre (IFSC) in Tanzania, aimed at attracting both local and foreign capital for investment in large-scale development projects.
Speaking during the group’s second working session held over the weekend, TNBC Executive Secretary Dr Godwill Wanga said the initiative is part of broader efforts to strengthen the financial sector and drive economic growth.
“The establishment of the IFSC will facilitate the flow of significant capital investment into strategic projects both within and beyond Tanzania. This will, in turn, contribute to national economic development,” said Dr Wanga.
He noted that the centre is expected to benefit a wide range of stakeholders, including financial institutions such as banks, capital markets and service providers in the transportation and hospitality sectors, thereby enhancing the investment value chain.
Deputy Governor of the Bank of Tanzania (BoT), Ms Sauda Msemo said that the centre aligns with the government’s vision to achieve a gross national income of one trillion US dollars by 2050.
“With adequate capital, the centre will serve as a magnet for both domestic and international investors, facilitating the execution of major infrastructure and industrial projects that require substantial financial backing,” she said.
Ms Msemo also noted the broader macroeconomic benefits, including promoting Tanzanian exports and increasing foreign currency reserves key to stabilising the economy and supporting the importation of essential goods.
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Executive Director of Tanzania’s Public-Private Partnership (PPP) Centre, Mr David Kafulila, echoed these sentiments, stating that the IFSC will boost investor confidence by assuring capital safety under government oversight.
“To build a trillion-dollar economy, Tanzania must go beyond loans and tax revenues. We need to attract private capital. Only 19 countries globally have achieved this economic milestone and Tanzania is determined to join their ranks,” Mr Kafulila said.
He stressed the importance of regulatory and policy reforms to facilitate this ambition, calling for modernisation of laws and a mindset shift among public institutions.
“Every ministry and its agencies should adopt the PPP model in implementing their projects. The private sector often brings in superior technology and efficiency, which are critical for development,” he added.
President of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Mr Vincent Minja, who is also a member of the working group, confirmed that stakeholders welcomed the proposal enthusiastically.
“We are hopeful that higher decision-making bodies will approve the IFSC plan promptly, allowing for immediate implementation,” Mr Minja stated.
If approved, the International Financial Services Centre would mark a pivotal step in Tanzania’s journey toward becoming a regional financial hub and accelerating its path to middle-income status.
