TIB set to receive up to $500m to support long term financing

 Managing Director for Tanzania Investment Bank (TIB) Peter Noni (right) who is also the Chairman of the Association of African Development Financing Institutions (AADFI) compare notes with the Deputy Minister for Finance Janet Mbene (left) shortly before she officiated the 38th AADFI ordinary general assembly in Arusha yesterday.

By BUSINESS REPORTER

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 as she was opening the 38th Association of African Development Financing Institutions (AADFI) held in Arusha yesterday.

Mbene said TIB will be given the finance in order 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 capitalization would be achieved in a period of less than five years.

“Tanzania Investment Bank (TIB) is our leading national Development Finance Institution (DFI). 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 its focus including the benefits and synergies it provides to our current growing national DFIs,” said Deputy Minister Mbene.

Speaking shortly before welcoming 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.

He also said as regards capacity building, the Association has continued to make slow progress in its efforts to strengthen the skills of professionals in African DFIs.

“Lack of adequate funding remains a big challenge towards implementation of the scheduled annual capacity building programmes. There are still huge funding requirements especially for young and upcoming DFIs, for which a more elaborate and long term technical assistance is required. As mentioned above, the poorly rated DFIs will design capacity building and reform programmes which would need to be funded by donors,” he said.