By Business Insider Reporter
Stanbic Bank Tanzania (SBT) has strengthened its role in Tanzania’s capital markets after leading the arrangement of the Makazi Bond, a housing finance bond issued by First Housing Finance Tanzania (FHF).
The bond is designed to raise long-term funding for mortgage lending, helping more Tanzanians access affordable housing while supporting growth in the construction sector and the wider economy.
“The Makazi Bond represents an important step in mobilising domestic capital for housing finance, directing long term funding toward a sector that underpins economic productivity, employment and social wellbeing,” SBT said in presser.
FHF stands as the country’s pioneering and leading dedicated non-banking mortgage lender, distinguished by its market expertise and commitment to expanding home ownership opportunities nationwide
By the end of March 2025, it had a 5.3 percent share of the mortgage market and had provided about TSh 36 billion in home loans to hundreds of customers across the country.
The first tranche issuance of TSh 5 billion, with a greenshoe option of TSh 3 billion, reflects growing investor confidence in well-structured instruments that balance financial returns with developmental impact.
Speaking at the launch, Stanbic Bank Tanzania Chief Executive Manzi Rwegasira said the transaction shows how capital markets can be used to support national development goals.
“Housing is more than shelter. It is a foundation for stable households, stronger communities and sustainable economic growth,” he said, adding that capital markets can help address real economic needs when structured properly.
Funds raised through the bond will allow FHF to expand its mortgage lending, making housing finance more accessible. This is expected to create jobs in construction and related industries, while also promoting financial inclusion.
Stanbic Bank’s Head of Corporate and Investment Banking, Ester Manase, said strong and transparent structures are key to building trust among investors.
“For capital markets to grow, instruments must be transparent, accessible and aligned with long-term economic outcomes,” she said.
The bank’s Senior Vice President for Debt Capital Markets and Distribution, Sarah Mkiramweni, noted that the bond aligns with Vision 2050, which prioritises inclusive growth, shared prosperity and social wellbeing. She said housing finance is critical for urban development, household stability and long-term productivity.
Stanbic Bank Tanzania has invited both local and international investors to participate in the Makazi Bond, saying it offers an opportunity to earn returns while supporting inclusive and sustainable development. The bank said it remains committed to developing capital market solutions that connect investment to real economic impact and support the growth of Tanzania’s financial sector.
