Regional investors call for local capital to drive Tanzania’s infrastructure growth

Arusha. East African institutional investors have urged governments and the private sector to rethink how infrastructure is financed across the region, calling for a bold shift toward harnessing domestic capital to close funding gaps in critical sectors.

This was the resounding message at the inaugural East Africa Institutional Investors Forum, held in Arusha from July 22 to 23, which brought together pension fund managers, development financiers, commercial banks, regulators, and policymakers from Tanzania, Kenya, and Uganda.

Organised by Stanbic Bank Tanzania in collaboration with its regional counterparts, the forum tackled a glaring paradox: while billions of shillings in long-term pension savings sit idle across East Africa, vital infrastructure projects—in transport, energy, housing, and digital connectivity—continue to struggle for financing.

“There is enough capital in East Africa to fund East Africa,” said Aboubakar Massinda, Executive Vice President for Energy and Infrastructure at Stanbic Bank Tanzania. “But we must align regulation, build trust, and prepare viable projects that meet the return expectations of institutional investors.”

Speakers at the forum called for reduced dependence on foreign aid and commercial debt, noting that regional policies—such as Tanzania’s Vision 2050—require financing strategies that are both sustainable and homegrown.

Benedict Nkini, Vice President for Financial Institutions at Stanbic Bank Tanzania, described the forum as a platform designed to connect capital to projects.

“For over 30 years, we have structured investments that deliver in Tanzania. It is time to scale that across borders,” he said.

The forum also featured insights from Kenyan investment managers, including Githuku Mwangi, Transaction Advisor at CPF Capital and Advisory Services, who likened the region’s financial ecosystem to an “investment conveyor belt” in which pension schemes, banks, and asset managers play complementary roles across project lifecycles.

“We can no longer rely on central government transfers alone,” Mwangi said. “Our mandate is to make counties financially sustainable through long-term investment.”

Panelists pointed out persistent barriers to local investment, such as a lack of bankable projects, fragmented procurement systems, and a shortage of financial instruments suited to long-term investors like pension funds.

Nonetheless, optimism remained high. Successful infrastructure projects—such as Uganda’s Bujagali hydropower initiative—were cited as models that could be scaled up through improved project preparation and stronger collaboration between public and private sectors.

“What we need now is predictability, a steady flow of well-prepared projects, consistent rules, and instruments that match the safety profile long-term investors need,” one speaker noted.

For Stanbic Bank and its partners, the takeaway was clear: East Africa must stop waiting for global capital and begin leveraging the resources it already has.

“This is just the beginning,” organisers concluded. “We are building a long-term platform to shift the centre of gravity for infrastructure finance back to where it belongs—East Africa.”