Stanbic Bank: Tanzania’s undisputed leader in syndicated financing

When it comes to syndicated financ­ing, where multiple lenders collaborate to fund a single borrower - Stanbic Bank stands as the unrivalled market leader in Tanzania.

According to Ms Ester Manase, Head of Corporate and Investment Banking at Stanbic Bank Tanzania (SBT), the lender has arranged syndicated loans exceeding US$2 billion since setting shop back in 1995.

This amount has been instrumental in the bank’s funding of capital-intensive infrastructure and economic develop­ment projects across various sectors.

Zanzibar’s 185bn/ term financing

Ms Manase’s remarks come in the wake of Stanbic Bank Tanzania’s latest co-financing agreement with PBZ Bank, under which, jointly with People’s Bank of Zanzibar (PBZ), they have extended a S h 185 billion term financing loan to the Revolution­ary Government of Zanzibar (SMZ).

“This ground­breaking financ­ing milestone reaffirms our crucial role and lead­ership in mobilizing capital for transform­ative devel­opment projects nationwide,” Ms Manase emphasized in a recent exclusive interview.

Stanbic’s first direct financing in the isles will support Zanzibar’s socio-eco­nomic development agenda, with a strong emphasis on advancing its blue economy blueprint - a strategic initiative aimed at leveraging marine resources for sustain­able economic growth.

Ms Manase stated that the March 5, 2025, local led jointly arranged deal has not only reinforced SBT’s leadership in Term financing but has also solidified its position as the premier arranger of large-scale financing solutions in the country.

The Zanzibar venture further strength­ens Stanbic’s portfolio by fostering new banking relationships and deepening existing partnerships. It also enhances the bank’s reputation as a trusted finan­cial advisor for long-term development financing.

Beneficiaries of Stanbic’s syndicated financing

“Stanbic Bank Tanzania has a strong track record in structuring syndicated loans, facilitating financing for key sectors essential to national growth,” she noted.

“To date, the bank has arranged syndi­cated loans exceeding US$2 billion, sup­porting Tanzania’s infrastructure, ener­gy, telecommunications, and industrial sectors.”

These strategic investments have not only accelerated development but have also improved livelihoods, opened busi­ness opportunities, and propelled nation­al growth.

Since its entry into Tanzania in May 1995, following the Standard Bank Group’s acquisition of Meridien BIAO Bank, Stanbic has successfully structured high-profile syndicated loans, including over US$1 billion in the public sector and over US$1bn in the private sector, these being instrumental in driving Tan­zania’s economic development by ena­bling large-scale infrastructure projects, enhancing energy security, expanding telecommunications networks, and strengthening industrial capacity,” Ms Manase explained.

Dr Saada Mkuya

Before SBT and PBZ Bank formal­ized their agreement to collaborate as Co-Mandated Lead Arrangers, the Min­ister of State in the President’s Office for Finance and Planning, Dr Saada Mkuya, underscored the importance of such partnerships and encouraged other local financial institutions to explore similar strategic collaborations to drive econom­ic growth.

As the original lenders, the two banks will jointly finance the first tranche of the loan. The broader strategic plan aims to mobilize up to Sh 500 billion, ensuring sustainable funding for long-term devel­opment initiatives.

Dr Mkuya urged other financial insti­tutions to join the initiative, emphasiz­ing that the Eighth Phase Government, under the visionary leadership of Dr Hus­sein Mwinyi, requires such strategic part­nerships and funding arrangements from the domestic credit market to realize its ambitious economic development goals.

“This strategic credit partnership and patriotic financing alliance comes at a piv­otal moment, as it will play a crucial role in accelerating economic growth beyond the current 7.3 percent to surpass 7.4 per­cent,” Dr Mkuya stated, addressing Stan­bic Bank Chief Executive Manzi Rwe­gasira and PBZ Bank Managing Director Arafat Ally Haji.

Stanbic and PBZ bank leaders

Earlier, the two leaders emphasized that the credit facility would not only strengthen the SMZ but also serve as a catalyst for improving livelihoods by providing essential funding for economic growth and improvement of social wel­fare.

“At Stanbic Bank, we view this financ­ing as more than just capital; we see it is a catalyst that will accelerate Zanzibar’s progress in key sectors such as fisher­ies, maritime trade, energy, tourism, and infrastructure,” Mr Rwegasira noted.

“These funds will facilitate the com­pletion of ongoing socio-economic pro­jects while also financing new initiatives planned by the authorities – ensuring long-term, sustainable prosperity for the people of Zanzibar,” Mr Haji stated.

The loan, a groundbreaking initiative from local banks for Zanzibar, is set to deliver significant benefits across multi­ple stakeholders. For the Revolutionary Government of Zanzibar (SMZ), it pro­vides a crucial financial boost, helping to bridge the Sh 1.712 trillion development budget.

For the ordinary citizens, Stanbic Bank Tanzania’s Head of Corporate and Invest­ment Banking, Ms Manase, emphasized that the joint funding will drive employ­ment creation and enhance public servic­es, ultimately improving living standards across the Spice Islands.

Driving prosperity

On a national scale, she noted that the partnership would stimulate credit growth and strengthen Tanzania’s finan­cial sector by promoting syndicated lend­ing and risk-sharing mechanisms among commercial banks.

“Stanbic Bank Tanzania’s loan book has expanded significantly in recent years, with over US$1 billion dedicated to infrastructure projects alone,” Ms Manase highlighted during the interview.

She further underscored that this financing aligns with Tanzania’s nation­al development agenda, championed by President Dr Samia Suluhu Hassan, which prioritizes economic expansion, industrialization, and improved liveli­hoods.

“Through strategic financing initia­tives like the Zanzibar syndicated loan, Stanbic Bank continues to play a pivotal role in shaping Tanzania’s financial land­scape, fostering economic prosperity, and reinforcing its position as a premier financial partner in national develop­ment,” she added.