AfDB and ITFC Sign Partnership to Boost Tanzania’s Private Sector Growth

“Tanzania is steadily expanding its international trade while holding untapped potential,” Ibouroi said.

The African Development Bank Group (AfDB) and the Islamic Trade Finance Corporation (ITFC) have reaffirmed their commitment to strengthening private sector development as a cornerstone for sustainable growth and long-term competitiveness in Tanzania. The renewed partnership was cemented during a high-level meeting held on 29 September 2025 at the AfDB’s Tanzania Country Office in Dar es Salaam.

The meeting brought together Patricia Laverley, AfDB Country Manager for Tanzania, and Said Ibouroi, Senior Manager and Regional Head for East Africa and Latin America at ITFC, a member of the Islamic Development Bank Group (IsDB). The discussions centered on strategic collaboration, investment priorities, and opportunities for expanding financial access and resilience across key sectors of the Tanzanian economy.

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Shared Focus on Empowering SMEs and Building Resilience

During the meeting, ITFC outlined its strategic portfolio anchored on three pivotal pillars:

1. Enhancing access to finance for small and medium-sized enterprises (SMEs);

2. Strengthening food security through investments in agriculture;

3. Sustaining energy security by expanding sustainable energy initiatives and trade financing for energy-related imports.

These priorities, ITFC noted, directly align with both Tanzania’s National Five-Year Development Plan and the AfDB’s Tanzania Country Strategy Paper (CSP) 2021–2025, which emphasizes private sector competitiveness, job creation, and industrial diversification.

“Tanzania is steadily expanding its international trade while holding untapped potential,” Ibouroi said. “By empowering SMEs and supporting key sectors such as agriculture, petroleum, and gas, we see strong opportunities to unlock value chains that can drive economic resilience and regional integration.”

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Unlocking Africa’s Capital and Financial Sovereignty

The discussions also touched on ITFC’s alignment with the ‘Four Cardinal Points’ introduced by ITFC President Dr. Sidi Ould Tah, which include:

• Unlocking Africa’s Capital Power through capital mobilization and blended financing;

• Rebuilding Africa’s Financial Sovereignty via innovative partnerships that reduce dependency and increase regional financial autonomy;

• Promoting inclusive and sustainable trade finance; and

• Advancing digital transformation in trade and finance.

Both parties acknowledged that strengthening private sector participation and improving access to affordable finance are essential for Tanzania to achieve inclusive economic growth and sustainable industrialization.

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Aligning With Tanzania’s Vision for Investment and Industrialization

The meeting highlighted Tanzania’s strong macroeconomic performance, stable investment climate, and ongoing reforms aimed at boosting private investment in sectors such as agriculture, manufacturing, energy, and logistics.

According to Laverley, these developments present an opportunity for AfDB and ITFC to jointly catalyze investment and enhance value addition across strategic sectors.

“This engagement marks a promising step towards deeper collaboration with ITFC,” Laverley said. “It underscores our shared vision of positioning Tanzania as a dynamic investment hub and a leader in private sector-driven development.”

The AfDB has played a critical role in Tanzania’s transformation agenda, supporting projects in infrastructure, agriculture, and renewable energy. The partnership with ITFC will further advance the government’s goal of building a resilient, export-oriented economy that creates jobs and promotes inclusive growth.

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Commitment to Long-Term Partnership and Impact

The two institutions agreed that there is strong potential for impactful cooperation, especially in financing trade, agriculture, and SMEs, and in promoting sustainable energy solutions. Both AfDB and ITFC reiterated their readiness to collaborate on capacity-building programs, policy dialogue, and knowledge-sharing initiatives to strengthen Tanzania’s private sector ecosystem.

“This partnership illustrates the growing synergy between African and Islamic financial institutions in driving sustainable growth,” said Ibouroi. “Together, we can help Tanzania realize its ambition of becoming a regional economic powerhouse.”

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A Step Toward Inclusive and Sustainable Prosperity

The meeting concluded with both parties expressing optimism that their collaboration will serve as a model for regional cooperation and innovative financing across East Africa.

As Tanzania continues to position itself as a gateway for trade and investment in the region, the AfDB-ITFC partnership is expected to accelerate private sector-led transformation, promote financial inclusion, and contribute to resilient and sustainable development.