By Business Insider Reporter
The African Development Bank (AfDB) and the Islamic Trade Finance Corporation (ITFC) have announced a new phase of strategic collaboration aimed at accelerating private sector growth, boosting trade, and driving long-term investment in Tanzania’s economy.
During a high-level meeting held recently in Dar es Salaam, the two institutions outlined a joint commitment to support Tanzania’s private sector as a central pillar for sustainable and inclusive development.
The session brought together AfDB Country Manager for Tanzania, Patricia Laverley, and a delegation from ITFC led by Regional Head for East Africa and Latin America, Said Ibouroi.
Both sides identified synergies between their operational mandates and Tanzania’s development priorities, particularly in enhancing access to finance, strengthening food security, and sustaining energy stability.
A shared vision for private sector-driven growth
At the centre of discussions was the recognition that Tanzania’s economic transformation will depend heavily on private sector dynamism.
The AfDB’s Tanzania Country Strategy Paper (2021–2025) places private sector competitiveness and job creation among its key priorities, while ITFC’s strategy emphasises empowering small and medium-sized enterprises (SMEs) through trade finance and capacity building.
Laverley described the collaboration as “a promising step toward positioning Tanzania as a dynamic investment hub,” highlighting the complementarity between the two organisations’ objectives.
“This engagement marks a promising step towards deeper collaboration with ITFC, a member of the Islamic Development Bank Group, and underscores our shared vision of positioning Tanzania as a dynamic hub for investment and private sector advancement,” she said.
Unlocking capital and financial sovereignty
The meeting also explored alignment with ITFC’s “Four Cardinal Points,” introduced by its President, Dr. Sidi Ould Tah.
These include “Unlocking Africa’s Capital Power” through innovative capital mobilisation and blended financing, and “Rebuilding Africa’s Financial Sovereignty” by promoting financial partnerships that reduce dependence on external borrowing.
Both AfDB and ITFC see Tanzania as a prime candidate for these initiatives. With steady GDP growth averaging over 5 percent and expanding trade relations across East Africa and the Middle East, the country’s investment climate has become increasingly attractive.
“Tanzania is steadily expanding its international trade while holding untapped potential,” said Ibouroi. “Recognising opportunities in key sectors such as agriculture, petroleum, and gas, ITFC sees prospects to empower SMEs and the private sector, unlocking value chains that drive economic resilience and regional integration.”
Focus on key sectors: Agriculture, energy and SMEs
The meeting underscored three key focus areas where AfDB and ITFC intend to deepen cooperation.
One of which is agriculture and food security in which Tanzania remains a major producer of cash crops such as coffee, cotton, cashew nuts, and maize.
ITFC’s agricultural financing model aims to strengthen value chains and ensure that farmers and agri-SMEs gain better access to working capital, technology, and export markets.
Another area is energy and infrastructure development in which Tanzania pursuing energy diversification under President Samia Suluhu Hassan’s Vision 2050, ITFC is exploring opportunities to co-finance clean energy and petroleum logistics projects that enhance the country’s industrial base and rural electrification.
In the area of SME Empowerment, both institutions emphasised the importance of empowering Tanzania’s growing SME sector – seen as the backbone of the economy – to improve access to credit and trade finance.
AfDB’s Private Sector Credit Enhancement Facility and ITFC’s Shariah-compliant trade financing are expected to complement each other in this regard.
Regional trade
The two institutions also reaffirmed their support for Tanzania’s integration into regional markets under the African Continental Free Trade Area (AfCFTA).
By improving trade logistics, financial infrastructure, and industrial competitiveness, Tanzania can consolidate its position as a gateway for East and Central Africa. AfDB officials noted that expanding trade facilitation and energy connectivity across the East African Community (EAC) and Southern African Development Community (SADC) blocs would reinforce Tanzania’s role as a transport and logistics hub.
