The government is set to give Tanzania Investment Bank (TIB) between USD 400 to 500 million as seed money to allow it to have sizable buffers for long term financing and provision for new financing instruments.
This was said by Deputy Minister for Finance Janet Mbene when opening the 38th Association of African Development Financing Institutions (AADFI) meeting in Arusha yesterday.
Mbene said TIB will be given the funds to increase its capacity to intervene in development sectors, especially in infrastructure, before it goes on its own into the capital markets for its funding needs.
According to the Deputy Minister, this level of capitalisation would be achieved in less than five years.
“Tanzania Investment Bank (TIB) is our leading national Development Finance Institution. It is fully owned by the Government of Tanzania. It is also important to note that my government’s support to TIB is not an afterthought. The Government also fully supports the AADFI, its mission and focus including the benefits and synergies it provides to our current growing national DFIs,” said Deputy Minister Mbene.
elcoming the Deputy Minister to officiate the meeting, TIB Managing Director Peter Noni who is also the AADFI chairman said TIB will continue to strive to implement all development plans it has line in order to make sure that it achieves its goals as a development bank.