Tanzania shines in Absa Africa Financial Markets Index 2025 as reforms bear fruit

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Mwananchi Communications Limited

Dar es Salaam. Tanzania’s financial market reforms and progress were highlighted on Thursday as Absa Bank Tanzania launched the Absa Africa Financial Markets Index (AFMI) 2025.

Now in its ninth year, the Index benchmarks financial market development across 29 African economies, covering around 80 percent of the continent’s population and GDP.

It assesses countries across six pillars, including market depth, transparency, access to foreign exchange, pension fund development, macroeconomic stability and legal enforceability.

The 2025 report noted progress across Africa despite global economic headwinds, with reforms in transparency, regulatory clarity, product diversification and digital innovation emerging as key drivers of resilience.

For Tanzania, the Index highlighted notable gains in product diversity, expanding investment options and keeping pace with global trends.

Milestones include the launch of the government’s first sovereign Sukuk bond through a special purpose vehicle in February 2025, following its inaugural public Sukuk bond in 2023. The seven-year bond aims to fund infrastructure and social development projects, giving Tanzania access to Shariah-compliant capital.

The Samia infrastructure bond, issued in 2025, was oversubscribed by 115 percent, raising Sh323 billion against a target of Sh150 billion.

This, the survey says, augments the government’s strategy of having diversified sources of funding that attract investors with different ethical backgrounds, facilitating financial inclusion.

Authorities have further addressed tax distortions by equalising withholding tax rates across maturities and strengthened the financial system with a local annex to the Global Master Repurchase Agreement (GMRA), interbank market guidelines and legal reforms easing restrictions on netting and title transfer. Non-performing loans improved to 3.3 percent, among the lowest in the region alongside Egypt.

The launch, a high-level corporate breakfast, was officiated by the Director of Financial Markets at the Bank of Tanzania, Mr Emmanuel Akaro who represented the Governor, Mr Emmanuel Tutuba.

In his remarks, the CEO of Absa Bank Tanzania, Mr Obedi Laiser, emphasised the importance of robust, transparent financial markets for sustainable economic growth.

“The Absa Africa Financial Markets Index provides an objective, evidence-based view of how African markets are evolving,” he said.

Mr Akaro welcomed the report as a valuable policy tool. “It highlights Tanzania’s strengths in macroeconomic stability and transparency, while identifying areas for improvement, including local investor participation, pension fund development, and legal and institutional frameworks,” he said.

He reaffirmed the government’s commitment, under President Samia Suluhu Hassan, to advancing reforms that deepen markets, expand financial instruments, and align Tanzania’s system with international best practice. Speaking for Absa Bank Tanzania Chairman, Mr Paul Makanza, a director, Lulu Ngw’anakilala, speaking for praised the quality of discussions.

“AFMI 2025 shows progress but reminds us that continued collaboration between government, regulators, financial institutions and the private sector is essential to building deeper, inclusive markets,” she said.

The launch concluded with a panel discussion featuring representatives from Absa Group, Public Service Social Security Fund (PSSSF), Tanzania Investment and Special Economic Zones Authority (TISEZA) and Jubilee Life Insurance, exploring practical ways to accelerate Tanzania’s financial market development in line with AFMI 2025 insights.