Tanzania to establish international financial services centre

Dodoma. The National Business Council (TNBC), through its finance working group, is spearheading efforts to establish an International Financial Services Centre (IFSC) in Tanzania as part of broader plans to attract both local and foreign capital for large-scale investments.

Speaking during the second working session of the committee held over the weekend, TNBC Executive Secretary Dr Godwill Wanga said the group had resolved to set up the centre to serve as a catalyst for economic growth and investment mobilisation. 

“The establishment of this centre will help to attract significant capital investment in various large-scale projects within and outside the country, and help grow the economy,” said Dr Wanga.

He added that the initiative would benefit a wide range of stakeholders including financial institutions such as banks and capital markets, as well as ancillary service providers like airline and bus operators, food vendors, and others along the investment value chain.

Deputy Governor of the Bank of Tanzania (BoT), Ms Sauda Msemo, hailed the proposed centre as a strategic move that aligns with the government’s ambition of reaching a gross national income of $1 trillion by 2050.

“Once this centre has adequate capital, it will attract both local and international investors, making it easier to implement major projects in the country which require substantial funding,” Ms Msemo said.

She further noted that capital mobilisation through the centre would enhance the international competitiveness of Tanzanian products, reduce foreign currency shortages, and increase the country’s purchasing power for imported goods.

Meanwhile, the Executive Director of the Public-Private Partnership (PPP) Centre, Mr David Kafulila, underscored the importance of the IFSC, stating that it would boost investor confidence and significantly contribute to national development. 

“To build a trillion-dollar economy, we cannot rely solely on loans and taxes,” he said. “There are only 19 countries globally that have reached this level. Tanzania is now aiming to join that group.”

Mr Kafulila also called for sweeping reforms in laws, policies and regulations, along with the integration of advanced technologies and a mindset shift across the public sector. 

He urged every ministry and its departments to actively apply the PPP model in implementing projects to accelerate economic transformation. 

“Studies show that the private sector generally has more advanced technology than the public sector,” he noted.

Also present at the session was the President of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Mr Vincent Minja, who expressed optimism about the initiative.

He said the proposal had been well received by stakeholders and expressed hope that higher-level authorities would give it the green light so implementation could begin without delay.