STANBIC BANK TANZANIA: PENSION FUNDS KEY TO UNLOCKING AFRICA'S INFRASTRUCTURE FINANCE

DAR ES SALAAM, Tanzania — Greater collaboration between commercial banks and pension funds could unlock the long-term capital required to accelerate infrastructure development across Africa, Stanbic Bank Tanzania Chief Executive Officer Manzi Rwegasira has said.

Speaking at a high-level forum held in Dar es Salaam on Wednesday, August 5, 2026, Rwegasira noted that while commercial banks play a critical role in financing the early stages of infrastructure projects, their funding is primarily sourced from short-term customer deposits, making it less suitable for long-term investments such as roads, bridges, ports and energy projects.

The forum brought together senior government officials, financial sector leaders and business executives to explore innovative financing solutions under the theme, "Reinvesting for Expansion: Recycling as a Catalyst for Growth."

Rwegasira said pension funds are uniquely positioned to provide the patient capital required for large-scale infrastructure projects due to their long-term investment horizon.

"Banks can finance the initial stages of projects before bringing in pension funds, which have the capacity to invest over the long term because of the nature of their capital," he said.

 

According to Rwegasira, stronger collaboration between banks and institutional investors such as pension funds would create a more sustainable financing ecosystem capable of delivering the infrastructure needed to support Africa's economic transformation.

Asset Recycling Can Reduce Dependence on Borrowing

Rwegasira also called on African countries to reduce their reliance on new borrowing to finance infrastructure and instead maximise the value of existing public assets through innovative financing models.

He highlighted asset recycling as a practical approach that allows governments to leverage revenue-generating infrastructure—including ports, roads and bridges—to attract private sector investment and unlock capital for new development projects.

"Rather than relying on new loans every time, Africa should use its existing assets to generate additional financing for future infrastructure investment," he said.

The asset recycling model enables governments to reinvest proceeds from mature infrastructure assets into new projects, helping bridge Africa's significant infrastructure financing gap while promoting greater private sector participation and reducing pressure on public debt.

As African economies continue to pursue ambitious infrastructure agendas, closer partnerships between commercial banks, pension funds and private investors are expected to play an increasingly important role in mobilising the long-term capital needed to drive sustainable economic growth.

---

Follow Kitomari Banking & Finance Blog for the latest news, insights and analysis on banking, finance, capital markets, infrastructure and business developments across Tanzania and Africa.