The Bank of Tanzania has made an equity investment in infrastructure solutions provider the Africa Finance Corporation (AFC), becoming a sovereign shareholder and bolstering AFC’s diversified capital base and pan-African ownership structure.

In a statement, the AFC says the investment reflects growing sovereign confidence in its mandate to mobilise long-term capital for critical infrastructure and industrial development projects across Africa.

It adds that the investment reinforces the strong institutional positioning following its recent A (Positive Outlook) credit rating from S&P Global Ratings, which highlighted the AFC’s robust capital structure, strong shareholder support and consistent record of delivering transformational projects across the continent.

The addition of the Bank of Tanzania is said to further enhance the AFC’s shareholder diversification strategy, deepening participation from African sovereign institutions and central banks, while reinforcing the corporation’s role as a trusted partner for governments seeking to accelerate economic transformation through infrastructure-led growth.

The investment comes at a time when African economies are witnessing rising demand for development capital to support industrialisation, energy transition, logistics connectivity and value-added manufacturing, the AFC points out.

It posits that its model, anchored on strong sovereign backing and access to global capital markets, positions the corporation as a channel for directing capital into high-impact, bankable projects across Africa.

The AFC says it remains committed to scaling its support in Tanzania through sovereign financing and financial institution partnerships that support national development priorities.

These include sovereign budget support facilities to the Ministry of Finance and Planning, as well as trade finance lines to local financial institutions to strengthen liquidity, facilitate trade and support private sector activity.

These investments are expected to solidify the AFC’s continued partnership with Tanzania in advancing economic stability and enabling long-term infrastructure and industrial development.

“We are honoured by this decision and value it as a strong vote of confidence in the AFC’s mandate and record. The Bank of Tanzania’s commitment reinforces the strategic importance of African-led institutions that can mobilise long-term capital at scale for bankable infrastructure and industrialisation projects across the continent,” says AFC president and CEO Samaila Zubairu.

“The Bank of Tanzania’s investment further strengthens our sovereign shareholder base and reflects the growing recognition of the AFC as a reliable partner in bridging Africa’s infrastructure gap and fostering sustainable development across the continent. We look forward to deepening our engagement in Tanzania and supporting priority sectors that drive industrial growth, regional integration and long-term economic resilience,” Zubairu adds.

“The AFC has demonstrated a strong record in mobilising long-term capital for infrastructure and industrial development across the continent. Our investment reflects confidence in the AFC’s model and aligns with Tanzania’s priorities to strengthen economic resilience, support private sector growth and advance sustainable development through strategic partnerships,” says Bank of Tanzania governor Emmanuel Tutuba.

“Through its expanding shareholder base and strong sovereign partnerships, the AFC continues to advance its strategy of mobilising domestic and international capital into Africa’s most critical infrastructure assets, supporting sustainable economic growth and enhancing the continent’s competitiveness in global value chains,” he adds.