Dar es Salaam. Stanbic Bank Tanzania has reaffirmed the role of capital markets in advancing housing finance after participating as lead arranger in the Makazi Bond issued by First Housing Finance Tanzania (FHF), a non-banking mortgage lender.
FHF is Tanzania’s first dedicated non-banking mortgage lender and among the leading players in the housing finance market.
As of March 31, 2025, the institution held a 5.3 per cent share of the mortgage market, having advanced Sh36 billion to hundreds of borrowers across the country.
The Makazi Bond is designed to mobilise domestic capital for housing finance by channelling long-term funding into a sector regarded as critical to economic productivity, employment creation and social wellbeing.
The bond’s inaugural tranche of Sh5 billion, with a greenshoe option of Sh3 billion, signals growing investor confidence in structured instruments that combine commercial returns with development impact.
Speaking at the bond’s launch, Stanbic Bank Tanzania chief executive Mr Manzi Rwegasira said the transaction demonstrated how capital markets could be deliberately deployed to support national priorities.
“Housing is more than shelter. It is a foundation for stable households, stronger communities and sustainable economic growth,” he said. “By structuring credible and investable instruments, capital markets can play a meaningful role in addressing real needs within the economy.”
Proceeds from the bond will enable FHF to scale up its mortgage lending operations, expanding access to housing finance. The initiative is also expected to stimulate employment across the construction sector and related supply chains, while strengthening financial inclusion.
Stanbic’s head of Corporate and Investment Banking, Ms Ester Manase, said disciplined structuring was essential to building investor confidence and deepening local capital markets.
“For capital markets to grow, instruments must be transparent, accessible and aligned with long-term economic outcomes,” she said. “Transactions such as the Makazi Bond demonstrate how private capital can be mobilised responsibly to support development while delivering value to investors.”
The bank’s senior vice president for Debt Capital Market and Distribution, Ms Sarah Mkiramweni, said the issuance aligns with Tanzania’s Vision 2050, which prioritises inclusive growth, shared prosperity and social wellbeing.
She noted that housing finance plays a central role in supporting urban development, household stability and long-term productivity.
Stanbic Bank Tanzania said it would continue to play an active role in structuring financial solutions that connect capital to development impact, as part of efforts to strengthen Tanzania’s financial markets and the wider economy.
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