This was discussed at the two‑day annual general meeting of shareholders of Africa50 and the African Infrastructure Forum in Dar es Salaam, where politicians, financiers, and representatives of development institutions and the private sector discussed ways to expand African countries’ participation in financing the continent’s development.
Speaking at the plenary session titled «Trendsetters: Designed in Africa, Under Africa’s Leadership», Stanbic Bank Tanzania’s Executive Director, Manzi Rwegasira, noted that there are already financial institutions on the continent capable of supporting development, but their capabilities need to be significantly expanded. «Many good answers will be proposed, but, in my view, it all comes down to scale. We need to think about how we can scale up what we already have on this continent», Rwegasira said.
Institutions such as the African Development Bank and Africa50 play an important role in supporting infrastructure projects, but they are not capable of meeting the continent’s financing needs on their own. Rwegasira called for more active mobilization of domestic savings by strengthening capital markets, especially the markets for government and corporate bonds. «We need to make better use of our national domestic bond markets. They are still too shallow and small. We need to make them larger», he said.
Furthermore, he called on African countries to cooperate more closely to attract capital for major infrastructure projects, arguing that regional coordination could help open access to financing that individual states may find difficult to obtain on their own. «Perhaps regional cooperation is where we should start. We need to work together to leverage the capital we have», he added. He also mentioned securitization and the reuse of infrastructure assets as possible tools that could enable governments to obtain additional funding through infrastructure that has already been created. «Securitization allows us to recycle the same capital we have. If we can reuse infrastructure assets, we can use what has already been built to finance new infrastructure», he said.
The discussions took place against the backdrop of efforts to promote an Africa‑led financing model within the framework of the proposed «New African Financial Architecture for Development» (NAFAD), which envisages the unification of African banks, sovereign investors, insurance companies, development financing institutions, and governments..
Esther Manase, Head of Corporate and Investment Banking at Stanbic Bank Tanzania, noted that infrastructure projects require the cooperation of commercial banks, governments, development institutions, and institutional investors due to their long payback periods and high capital intensity. «The main takeaway for me is cooperation. Each participant has an important role to play, but none of us can realize these ambitions alone», said Ms. Manase. She added that commercial banks do indeed play a significant role in financing infrastructure, but they cannot independently provide the entire volume of long‑term capital needed for large projects. «Commercial banks can support infrastructure financing only up to a certain level. Since we are talking about long‑term investments, we need development institutions, insurance companies, as well as the public and private sectors to work together», she explained.
The development of infrastructure is key to economic growth, as it facilitates the movement of agricultural products and other goods, thereby supporting domestic and international trade. «We believe that infrastructure helps unlock economic potential. It facilitates the transportation of agricultural products and other goods, promotes imports and exports, and supports overall economic development», she said. Ms. Manase noted that Tanzania’s geographical location gives the country the opportunity to strengthen its position as a transport and logistics hub for East and Central Africa.
As an example, she pointed to eight neighboring countries, six of which are landlocked, calling this a significant opportunity for Tanzania to expand regional trade and transit services. «Tanzania is in a very strategic position. We have eight neighboring countries, six of which are landlocked. This gives us a unique opportunity to become a regional hub», she said. She added that investments in ports, standard‑gauge railways, and road networks could further strengthen Tanzania’s ties with neighboring markets and support regional supply chains.
Former President Jakaya Kikwete stated at the forum that the effectiveness of infrastructure development should ultimately be assessed by how it affects people’s lives and expands economic opportunities. He noted that Africa’s growing young population could become an important economic resource if governments combined investments in infrastructure with increased spending on education, skills development, and job creation. Dr. Kikwete emphasized that roads, railways, and energy projects should not be viewed as an end in themselves for development, but should be seen as tools for increasing productivity, supporting businesses, and improving the quality of life.
Discussions at the forum showed that Africa is increasingly in need of mobilizing its own financial resources while simultaneously attracting additional international capital. For Tanzania, expanding access to long‑term infrastructure financing can support current investments in transport, logistics and other strategically important sectors, as well as strengthen the country’s position as a «gateway» to the markets of the region’s landlocked states.
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