EADB signs Sh63.2 billion deals to accelerate growth in Tanzania

Dar es Salaam. The East African Development Bank (EADB) has sealed financing agreements worth Sh63.2 billion with three Tanzanian financial institutions, in a strategic move aimed at accelerating inclusive economic growth, easing the housing deficit, and empowering small and medium-sized enterprises (SMEs).

The landmark agreements were formalised on Monday, June 23, 2025, during an EADB stakeholders’ breakfast meeting held in Dar es Salaam.

The financing facilities involve TIB Development Bank (Sh30 billion), Tanzania Mortgage Refinance Company Limited (TMRC) (Sh20 billion), and Azania Bank Plc (Sh13.2 billion).

Speaking at the event on behalf of Finance Minister Dr Mwigulu Nchemba, the Commissioner for Financial Sector Development, Dr Charles Mwamwaja, said the new credit lines align with government priorities under the Third National Five-Year Development Plan (2021/22–2025/26).

“These agreements will spark inclusive growth, empower local enterprises and contribute directly to national development goals,” said Dr Mwamwaja, who also serves as EADB Board Chairperson.

TIB Development Bank will deploy its Sh30 billion facility to finance 20 to 25 strategic projects across key sectors including manufacturing, mining, infrastructure, real estate and tourism—projects aligned with Tanzania’s Vision 2025.

TMRC will use its Sh20 billion line of credit to broaden access to long-term mortgage financing through partner lenders, with the aim of narrowing Tanzania’s housing gap.

Available data show that Tanzania’s housing need is estimated to be three million units with an annual increase of 200,000 units.

The country’s urban centre is estimated to have a housing deficit of 1.2 million units, 36 percent in Dar es Salaam.

Meanwhile, Azania Bank’s Sh13.2 billion facility will target SME lending in sectors such as manufacturing, renewable energy, education, agriculture and healthcare.

The bank will offer USD-denominated loans to support business expansion and job creation.

EADB acting director general, Benard Mono, said innovative financing tools were important in meeting Africa’s development needs.

“Tanzania’s economic environment demands agile and forward-thinking financial solutions. Our goal is to fund projects that transform both communities and livelihoods,” he said.

The event also marked the launch of EADB’s 2024–2028 Strategic Plan, themed Let’s Do It.

The five-year blueprint centres on boosting development impact, automating internal systems, strengthening talent, enhancing brand visibility, and improving risk management.

Mr Mono revealed that in 2024 alone, EADB interventions had reached over 60,000 SMEs and helped create more than 110,000 jobs, 21,000 of which were held by women.

He said EABD remains the highest-rated financial institution in the East African region, with an ‘A’ rating from S&P Global Ratings and ‘A3’ from Moody’s. This positions it strongly for future resource mobilisation.

Beneficiaries of EADB funding also gave testimonies at the event, with the Director of Baobab Schools, Ms Shani Swai, saying the bank’s financing had supported the construction of new dormitories for girls at Baobab Secondary School, significantly improving education outcomes.

“Our partnership with EADB has led to real improvements in quality and access. The impact is visible in both education and health,” she said.

National Housing Corporation (NHC) Finance Manager, Mr Adolphe Kasegenya, shared that EADB funding had enabled the development of 300 affordable housing units in Dodoma and supported the Morocco Square project in Dar es Salaam.

“The housing sector stimulates multiple value chains, from construction to manufacturing. It remains a key engine of economic growth,” he noted.

EADB’s recent fundraising efforts include a $40 million line of credit from the OPEC Fund, with an additional $25 million raised through syndication.

Mono also disclosed that the bank is preparing to issue investment-grade bonds accessible across East Africa.

Dr Mwamwaja encouraged both public and private actors to engage more with the bank: “If you have a viable project, visit our country office. Our doors remain open.”

He added that similar stakeholder forums would soon be held in Kenya, Uganda, and Rwanda to further promote regional engagement with the bank.

“This institution belongs to us all. Let’s make full use of its services to uplift our economies,” he said.