Tanzania has reached an important milestone in its financial sector after the country's first offshore Tanzanian shilling-denominated bond was listed on the London Stock Exchange.The bond, valued at US$100 million (around TSh262.5 billion), was issued by the International Finance Corporation (IFC), a member of the World Bank Group.

The funds raised will be provided to NMB Bank Plc to expand lending to micro, small and medium-sized enterprises (MSMEs), strengthening access to finance for businesses that play a major role in Tanzania's economy.

Speaking during the launch in London, Finance Minister Ambassador Khamis Mussa Omar described the listing as the beginning of a new phase in Tanzania's participation in international capital markets using its own currency.

He said the transaction demonstrates growing international confidence in Tanzania's economy and ongoing financial-sector reforms, while also helping improve the country's reputation among global investors and potentially lowering future borrowing costs.

Omar emphasised that, unlike traditional government bonds mainly used to finance public infrastructure, this initiative is focused on supporting private-sector growth.

NMB Bank Chief Executive Officer Ruth Zaipuna said the financing will benefit small businesses, farmers, women-owned enterprises and other productive sectors.At least 20 per cent of the proceeds, equivalent to about TSh52.5 billion, has been allocated specifically to women-owned small businesses.

During his visit to London, the minister also met international investors to promote investment opportunities linked to Tanzania's Development Vision 2050.

He noted that the private sector is expected to provide around 70 per cent of the investment needed for the vision, while the government and public institutions will contribute the remaining 30 per cent.

Investors were invited to participate in major projects including the Standard Gauge Railway, energy generation, ports, airports, mining and agricultural value addition.