Tanzania is planning to set up an International Financial Services Centre (IFSC) to bring in money from inside and outside the country. The National Business Council (TNBC) is leading this plan to fund important projects in roads, factories, and trade, aiming to make Tanzania a financial hub in East Africa.
This means Tanzania will create a place where financial services like banking, stock markets, and investments are easier to access. The IFSC will help move money from people who save it to businesses and projects that need it. This will reduce how much Tanzania borrows at high costs and help both the government and companies get money more cheaply to grow.
The IFSC will affect many people. Farmers and small traders will get better chances to borrow money to buy tools or stock. Bigger companies and exporters will have more ways to raise money beyond bank loans, like selling shares or bonds. This will create jobs, increase incomes, and bring more foreign investment. Also, sectors like transport, tourism, and hotels will grow because of better finance options.
The move to establish an International Financial Services Centre (IFSC) builds on recent efforts by Tanzanian authorities to deepen domestic capital markets, including the tenfold increase in the Treasury bill bid ceiling earlier this year. By enabling broader investor participation in government securities and now pushing for a dedicated financial hub, the government is signalling a strategic shift toward mobilising long-term capital for infrastructure and trade—through both local and international channels.
Tanzania’s plan to create an International Financial Services Centre (IFSC) is a big step toward boosting the country’s economy. The centre will help bring in money from both inside Tanzania and other countries. This money will be used to pay for important projects like building roads, factories, and improving trade, which can create jobs and raise incomes.
The IFSC will make it easier for people and businesses to get loans and investments, not just from banks but also by selling shares or bonds. This will help small farmers and traders grow their businesses and also help big companies expand. It will also attract foreign investors, which brings more money into Tanzania.
However, for the IFSC to work well, the government needs to quickly put in place clear rules and protections to build trust with investors. Tanzania can learn from other countries like Dubai and Mauritius, which have successful financial centres because they have good laws and strong leadership.
The next steps include passing the necessary laws, setting up the systems and staff to run the centre, and letting people and businesses know how they can benefit from it. If Tanzania does these things well, the IFSC can help the country grow stronger economically and move closer to becoming a middle-income nation.
