Azania Bank’s TZS 63.27B Bond Listing Revolutionizes Tanzania’s Market

Finance Minister Hon. Dr. Mwigulu Lameck Nchemba officiated the listing of Azania Bank’s retail bond, Bondi Yangu, on the Dar es Salaam Stock Exchange (DSE), marking a significant achievement in Tanzania’s financial sector. During the ceremony at the DSE offices in Dar es Salaam, the Minister praised Azania Bank for surpassing expectations in its bond issuance. Initially targeting TZS 30 billion, the bond achieved an extraordinary 210.9% oversubscription, raising TZS 63.27 billion.

This accomplishment highlights the growing investor confidence in Tanzania’s capital markets and the appeal of Azania Bank’s innovative approach to financial inclusion. Of the total amount raised, 70% came from individual retail investors, while 30% was contributed by corporate and institutional investors. Notably, 98.4% of participants were domestic investors, with the remaining 1.6% coming from foreign investors, reflecting strong local engagement.

Minister Nchemba attributed this success to progressive government policies and Azania Bank’s innovative features. The Sixth Phase Government, led by President Samia Suluhu Hassan, has fostered a conducive environment for investment through measures such as tax exemptions on corporate bonds and a reduction in the minimum investment threshold from TZS 1 million to TZS 500,000. These reforms have made capital market participation more accessible to a wider range of investors. Additionally, the bond’s quarterly interest payment structure—offering more frequent returns compared to the traditional semi-annual schedule—enhanced its appeal by improving liquidity for investors.

The funds raised through Bondi Yangu will support Azania Bank’s strategic objectives, including providing loans to small and medium-sized enterprises (SMEs) with a focus on businesses led by women and youth. These initiatives align with the government’s broader agenda to foster entrepreneurship, strengthen the economy, and promote sustainable growth. By channeling capital into high-impact sectors, Azania Bank is playing a pivotal role in Tanzania’s economic development.

CPA Nicodemus Mkama, Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), described the bond’s success as a major milestone for Tanzania’s financial markets. He noted that this achievement reflects investor trust in both Azania Bank and the nation’s capital market reforms. Mkama highlighted that innovative financial instruments like Bondi Yangu are instrumental in implementing the government’s strategy to diversify funding sources for public and private sector growth.

Minister Nchemba called on other financial institutions and corporations to follow Azania Bank’s example by leveraging capital markets. Doing so would not only provide Tanzanians with opportunities to participate in economic growth but also enable institutions to secure funding for development projects critical to the country’s progress.