Private businesses in Tanzania are set to gain improved access to long-term financing through capital markets following a strategic partnership between the Dar es Salaam Stock Exchange (DSE) and the Tanzania Private Sector Foundation (TPSF), aimed at strengthening private sector participation in achieving the country’s Vision 2050 economic ambitions.
The partnership, formalised yesterday at the DSE headquarters in Dar es Salaam, follows a Memorandum of Understanding (MoU) signed last month between the two institutions to implement joint programmes targeting various sectors of the economy.
DSE chief executive officer Peter Nalitolela said the collaboration is aligned with Tanzania’s Vision 2050 objective of building a competitive, private sector-led economy capable of reaching a gross domestic product (GDP) target of 2,650trn/- (US$1 trillion) by 2050.
He said achieving the ambitious target will require significant mobilisation of resources, with the private sector expected to provide the largest share of financing.
Vision 2050 targets 70 percent of the 2,600trn/- economic resources required to be mobilised from the private sector.
The target represents a major shift towards a more private sector-driven development model, where businesses, investors and capital markets play a central role in financing economic expansion.
Nalitolela said the DSE-TPSF partnership will focus on increasing financial literacy, helping businesses understand capital market opportunities and enabling companies to raise funds through equity and debt instruments.
He said many businesses, particularly small and medium enterprises (SMEs), have growth potential but remain constrained by limited access to affordable and long-term financing.
“Through this partnership, TPSF members will have an opportunity to benefit from the capital market, including raising capital through the Dar es Salaam Stock Exchange,” he said.
TPSF acting executive director Deogratius Massawe said the initiative will cover programmes across 21 private sector subsectors, creating awareness on how businesses can use capital markets to expand operations and contribute to Vision 2050 implementation.
He said access to finance remains one of the biggest barriers limiting business expansion, job creation and investment growth.
“Many people own businesses, but the main challenge is how to raise capital,” Massawe said, adding that the partnership seeks to connect businesses with financing opportunities available through financial institutions and the stock market.
Under Vision 2050, Tanzania aims to transform into a high-income economy by expanding productive capacity, strengthening industrialisation, improving competitiveness and attracting more domestic and foreign investment.
The government expects the private sector to become a key engine of growth, with capital markets playing a bigger role in financing infrastructure, industries and emerging enterprises.
Currently, Tanzania’s capital market remains relatively small compared with the size of the economy, but recent growth in market activity, increased listings and rising investor participation indicate growing potential for the DSE to support long-term financing.
Unlocking private sector capital will be critical because traditional bank lending alone may not provide the scale of funding required for Tanzania to achieve the US$1 trillion economy target.
Also, expanding equity financing, corporate bonds, private equity and other market-based financing tools will allow businesses to access patient capital while reducing dependence on short-term borrowing.