Bank of Tanzania Joins AFC as Shareholder, Boosting Infrastructure Financing

The move signals growing confidence among African sovereign institutions in AFC’s model of mobilising long-term capital for infrastructure and industrial development across the continent.

In a major development for Africa’s infrastructure financing landscape, the Bank of Tanzania (BoT) has made an equity investment in the Africa Finance Corporation (AFC), becoming a sovereign shareholder and strengthening the institution’s capital base and pan-African ownership.

The move signals growing confidence among African sovereign institutions in AFC’s model of mobilising long-term capital for infrastructure and industrial development across the continent.

Strengthening Africa-Led Financing Institutions

AFC, widely regarded as one of Africa’s leading infrastructure solutions providers, said the investment enhances its shareholder diversification strategy, increasing participation from central banks and sovereign entities.

The development also reinforces AFC’s strong institutional standing, following its recent ‘A’ credit rating with a Positive Outlook from S&P Global Ratings, which cited:

• A robust capital structure

• Strong sovereign backing

• A proven track record in delivering high-impact projects

Rising Demand for Infrastructure Capital

The investment comes at a time when African economies are facing growing financing needs in critical sectors such as:

• Energy and energy transition

• Transport and logistics connectivity

• Industrialisation and manufacturing

• Trade and value chain development

AFC’s model—combining sovereign support with access to global capital markets—positions it as a key channel for directing funds into bankable, large-scale projects.

Tanzania Deepens Strategic Partnership

With the Bank of Tanzania’s entry, AFC is expected to scale its engagement in Tanzania, focusing on priority sectors aligned with national development goals.

Ongoing and planned interventions include:

• Sovereign budget support to the Ministry of Finance and Planning

• Trade finance lines for local financial institutions

• Liquidity support to strengthen private sector activity

• Investments to drive industrial growth and economic resilience

These initiatives are aimed at enhancing financial stability, trade facilitation, and long-term infrastructure development.

Leadership Voices Confidence in Partnership

Samaila Zubairu, President and CEO of AFC, described the investment as a strong endorsement of the institution’s mission:

“This is a significant vote of confidence in AFC’s mandate and track record. It reinforces the importance of African-led institutions in mobilising long-term capital for infrastructure and industrialisation.”

He added that the partnership would help deepen AFC’s impact in Tanzania and across the continent, particularly in regional integration and sustainable development.

Emmanuel Tutuba, Governor of the Bank of Tanzania, echoed this sentiment:

“Our investment reflects confidence in AFC’s model and aligns with Tanzania’s priorities to strengthen economic resilience, support private sector growth, and advance sustainable development.”

Building a Pan-African Capital Platform

The addition of the Bank of Tanzania underscores AFC’s broader strategy of:

• Expanding its sovereign shareholder base

• Mobilising both domestic and international capital

• Investing in critical infrastructure assets

By strengthening partnerships with African governments and institutions, AFC aims to accelerate progress in closing the continent’s multi-billion-dollar infrastructure gap.

Driving Long-Term Growth and Competitiveness

As Africa seeks to enhance its position in global value chains, investments like this are expected to:

• Improve connectivity and logistics

• Boost industrial capacity

• Support energy security and transition

• Enable sustainable economic growth

The partnership between AFC and Tanzania marks another step toward building a self-reliant, investment-driven development model for Africa.