By Atomide Otitoju
Bank of Tanzania has made an equity investment in Africa Finance Corporation (AFC), becoming a sovereign shareholder and further strengthening the institution’s capital base and pan-African ownership structure.
The investment underscores growing confidence among African sovereign institutions in AFC’s mandate to mobilise long-term capital for infrastructure and industrial development across the continent. It also follows the Corporation’s recent A (Positive Outlook) credit rating from S&P Global Ratings, which cited its strong capital structure, shareholder backing, and track record of delivering large-scale projects.
AFC said the addition of the Bank of Tanzania aligns with its strategy to diversify its shareholder base by increasing participation from African central banks and sovereign entities, reinforcing its role as a key partner for governments pursuing infrastructure-led economic growth.
The development comes amid rising demand for development finance across Africa to support industrialisation, energy transition, logistics, and value-added manufacturing. AFC noted that its model—anchored on sovereign support and access to global capital markets—positions it as a critical channel for funding high-impact projects.
In Tanzania, AFC said it will continue to expand its support through sovereign financing and partnerships with local financial institutions, including budget support facilities for the Ministry of Finance and Planning and trade finance lines to enhance liquidity and support private sector growth.
Commenting on the investment, AFC President and Chief Executive Officer, Samaila Zubairu, described the move as a strong vote of confidence in the Corporation’s mandate and performance.
He said the investment would further strengthen AFC’s sovereign shareholder base and enhance its capacity to bridge Africa’s infrastructure gap and support sustainable development.
Also speaking, Governor of the Bank of Tanzania, Emmanuel Tutuba, said the decision reflects confidence in AFC’s ability to mobilise long-term capital and aligns with Tanzania’s priorities to boost economic resilience, support private sector growth, and advance sustainable development.
AFC added that its expanding shareholder base and partnerships will continue to support its strategy of mobilising both domestic and international capital into critical infrastructure projects, driving economic growth and improving Africa’s competitiveness in global markets.
