Announcing the initiative while presenting the government's 2026/27 budget to Parliament on Thursday, Finance Minister Ambassador Khamis Mussa Omar said the proposed financial centre would help deepen capital markets, stimulate investment and support expansion across key sectors of the economy.

“This initiative intends to further stimulate growth in various sectors of the economy and capital development in the country,” the minister told lawmakers.

The planned financial centre forms part of Tanzania's wider efforts to strengthen its investment climate and enhance its competitiveness as a destination for both domestic and foreign investors.

According to Amb Omar, the private sector remains central to the country's economic transformation agenda, serving as a major source of investment, employment and development financing. The government has therefore continued implementing reforms aimed at reducing the cost and complexity of doing business.

He said Tanzania has reviewed 55 laws under the First Blueprint for Regulatory Reforms to Improve the Business Environment, leading to the reduction or elimination of 374 fees, levies and charges that had previously increased operating costs for businesses.

The reforms, he said, have contributed to a more favourable business environment, simplified regulatory procedures and encouraged increased participation by both local and international investors.

Reflecting growing investor confidence, foreign direct investment (FDI) inflows rose to 21.7 billion US dollars in 2024 from 14.1 billion dollars in 2018, according to government figures.

The government now plans to advance a second phase of reforms through the Second Blueprint for Regulatory Reforms to Improve the Business Environment, which is nearing completion. The programme is expected to further streamline taxes, levies and regulatory requirements imposed by public institutions.

Officials say the reforms are designed to lower business costs, simplify compliance procedures and channel more investment into productive sectors of the economy.

Alongside regulatory improvements, Tanzania is expanding partnerships with domestic, regional and international financial institutions to improve access to development financing.

The government is working with commercial banks, pension funds and multilateral finance institutions, including the International Finance Corporation (IFC), Africa50, Africa Finance Corporation (AFC) and the Asian Infrastructure Investment Bank (AIIB), to mobilise capital for strategic projects.

As part of efforts to improve access to finance, particularly for small and medium-sized enterprises, the government is also formalising credit guarantee schemes previously administered by the Bank of Tanzania.

Amb Omar said authorities intend to establish an independent credit guarantee corporation that will oversee the schemes and improve access to financing, especially for businesses producing goods for export markets.

“The government has initiated formalisation of Credit Guarantee Schemes that were under the supervision of the Bank of Tanzania and envisages establishing an independent credit guarantee corporation that will manage those funds,” he said.

The planned Dar es Salaam International Financial Centre, combined with ongoing regulatory reforms and initiatives to expand access to capital, is expected to strengthen Tanzania's position as an emerging investment destination and support the country's long-term economic transformation and development ambitions.

Notes to Editors

-The proposed Dar es Salaam International Financial Centre (DIFC) was announced as part of Tanzania's 2026/27 national budget.

-The initiative is intended to position Tanzania as a regional financial and investment hub capable of attracting greater volumes of international capital.

– The financial centre is expected to support capital market development, investment mobilisation and financing for strategic sectors of the economy.

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