New investment avenue as TCB launches Sh150bn bond to boost SME financing

By Hellen Nachilongo

Dar es Salaam. Investors in bonds have been presented with a new opportunity after Tanzania Commercial Bank (TCB) yesterday launched the Stawi Bond, a medium-term programme worth Sh150 billion.

The five-year bond, which marks TCB’s debut in the capital markets, offers investors a 13.5 percent interest rate payable quarterly. Proceeds will be channelled towards affordable loans for small and medium-sized enterprises (SMEs) to support business growth and job creation.

With this move, TCB joins other institutions that have so far listed bonds worth a combined Sh1.187 trillion at the Dar es Salaam Stock Exchange (DSE).

TCB Chief Executive Officer Adam Mihayo described the bond as more than a financial instrument. “Stawi Bond is a testament to TCB’s commitment to Tanzania’s economic agenda.

By empowering entrepreneurs and expanding access to affordable credit, we are ensuring that capital markets deliver value to the real drivers of our economy,” he said.

The launch comes at a time when Tanzania’s capital markets are experiencing significant growth. By June 27, 2025, the DSE had reached a total market capitalisation of Sh19.48 trillion, driven largely by the banking and industrial sectors.

Reforms such as the establishment of the Capital Markets Tribunal and amendments to DSE regulations have strengthened integrity, liquidity and efficiency, creating an enabling environment for products like the Stawi Bond.

Leaders present at the bond launch event on Wednesday, September 17, 2025 described the issuance as a crucial step in deepening capital markets.

Gracing the event on behalf of Deputy Prime Minister and Minister for Energy Dr Doto Biteko and Finance Minister Mwigulu Nchemba, the Deputy Permanent Secretary in the Ministry of Finance Elijah Mwandumbya said:

“The Stawi Bond is not only an investment tool but also a way of enhancing citizen participation in national investment, reducing reliance on foreign loans, and boosting government revenue,” he said.

He said government support was key to making such instruments successful.

“Your decision to invest in the Stawi Bond is not merely financial; it is also an expression of confidence in this bank and in the government’s agenda to support entrepreneurs,” he told investors.

DSE Chief Executive Officer Peter Nalitolela praised TCB for its transformative journey, urging the bank to consider listing its shares. “Since its founding nearly 100 years ago as the Post Office Bank, TCB has been a people’s bank.

Allowing citizens to own it through the stock market would be a historic step, aligning with Vision 2050’s goals of building an inclusive and resilient economy,” he said.

Mr Mwandumbya added that the government is keen to collaborate with financial institutions to develop more bond products as part of a broader strategy to reduce reliance on costly foreign loans and increase domestic participation in financing national development.