Bank of Tanzania, the central bank of Tanzania, has acquired a stake in the Africa Finance Corporation (AFC), becoming a sovereign shareholder and strengthening the diversified capital base of the pan-African institution. According to the AFC, this investment reflects the confidence of states in its ability to mobilize long-term financing for infrastructure and industrial development projects across Africa.
The move comes after the AFC was awarded an A credit rating (positive outlook) by S&P Global Ratings, which praised the strength of its capital structure and the support of its shareholders.
For the AFC, the entry of the Bank of Tanzania contributes to its strategy of diversifying shareholders, strengthening the participation of African sovereign institutions and central banks. The AFC aims to enhance its support in Tanzania through sovereign financing and partnerships with local institutions, including funding lines for the national budget and trade.
According to the Governor of the Bank of Tanzania, Emmanuel Tutuba, this investment demonstrates the reliability of the AFC model and aligns with the country’s priorities to strengthen economic resilience, support private sector growth, and promote sustainable development.