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| Capital Markets and Securities Authority (CMSA) Chief Executive Officer, Nicodemus Mkama (second left), hands over the approval note for Tanzania Commercial Bank Plc’s Stawi Bond to the bank’s Managing Director, Adam Mihayo (second right), during the bond launch in Dar es Salaam. Looking on are the Deputy Permanent Secretary in the Ministry of Finance, Elijah Mwandumbya (left), and TCB Chairman, Martin Kilimba. |
Dar es Salaam, Tanzania – 17 September 2025; Tanzania Commercial Bank (TCB) has officially launched a five-year bond known as the “Stawi Bond” with a total value of TZS 150 billion, of which the first tranche is TZS 50 billion. The bond aims to support access to affordable loans for small and medium-sized enterprises (SMEs).
The Stawi Bond offers investors an attractive 13.5% annual interest rate, payable quarterly. With a minimum investment of TZS 500,000, the initiative opens the door for a wider number of Tanzanians to participate in the capital markets while enjoying reliable returns.
TCB’S REMARKS
Speaking during the launch, TCB Managing Director, Adam Mihayo, said that proceeds from the Stawi Bond will be directed towards empowering SMEs.
“The Stawi Bond provides a real solution for small businesses, as it will enable them to access affordable loans and grow their operations. This is also part of our strategy to enhance financial inclusion for more Tanzanians,” Mihayo stated.
GOVERNMENT REMARKS
On behalf of the government, Deputy Permanent Secretary at the Ministry of Finance, Elijah Mwandumbya, emphasized that the Stawi Bond is more than just a financial instrument.
He noted that it creates a new avenue for citizens to directly participate in national investment, thereby contributing to inclusive economic growth.
Mwandumbya added that the government remains committed to creating an enabling policy environment that encourages financial institutions to design innovative products that expand access to affordable financing for SMEs. He further highlighted that this aligns with government efforts to strengthen the economy and reduce dependence on external borrowing.
CMSA REMARKS
Nicodemus Mkama, Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), described the Stawi Bond as historic, being the first of its kind to be issued by a state-owned bank.
He explained that this move reflects the implementation of the Alternative Project Financing Strategy, which seeks to empower public institutions to raise funds through the capital markets rather than relying solely on government budgets.
Mkama further noted that Tanzania’s capital markets have experienced rapid growth in recent years. Within just four years, the market’s value has grown by over 75%—from TZS 31.64 trillion in 2021 to TZS 55.45 trillion last month. He said this growth demonstrates innovation, resilience, and increasing investor confidence both locally and internationally.
DSE REMARKS
On his part, Peter Nalitolela, Chief Executive Officer of the Dar es Salaam Stock Exchange (DSE), said the launch of the Stawi Bond comes at an opportune time, as digital platforms now make it easier for citizens to invest.
He explained that investors can conveniently purchase the bond through the TCB and DSE mobile apps, making participation accessible from anywhere in the country.
Nalitolela stressed that the Stawi Bond represents a significant opportunity for both the private sector and the general public. By investing, citizens not only secure reliable returns but also contribute directly to national development through the capital markets.
CONCLUSION
The launch of the Stawi Bond marks a new chapter in Tanzania’s financial landscape. It is a bold step towards expanding access to affordable financing for SMEs, enhancing citizen participation in investments, strengthening government revenue, and driving inclusive economic growth nationwide.
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