Tanzania is set to transform its financial landscape with the establishment of an International Financial Services Centre (IFSC), a landmark initiative aimed at positioning the country as East Africa’s premier financial hub. Announced by the Tanzania National Business Council (TNBC) through its finance working group, the IFSC is designed to attract both local and foreign capital to fund large-scale investments, fostering economic growth and regional competitiveness, according to a statement released on May 12, 2025.

The IFSC will function as a one-stop hub for a wide range of financial services, including banking, insurance, wealth management, and capital market operations. By offering a streamlined regulatory framework, competitive tax incentives, and investor-friendly policies, the centre aims to create an enabling environment for international businesses and financial institutions. 

The initiative builds on Tanzania’s recent economic reforms, notably the 2022 Investment Act, which reduced the minimum capital requirement for foreign investors to $500,000, simplified profit repatriation, and strengthened investor protections. These reforms have already boosted Tanzania’s appeal, with foreign direct investment rising by 8% in 2023, according to the Bank of Tanzania.

“The IFSC will address the challenge of shallow financial markets and unlock access to capital for transformative projects,” said Francis Nanai, TNBC Executive Secretary. He highlighted Tanzania’s strategic geographic advantage, with Dar es Salaam overtaking Nairobi as the region’s trade hub, handling $12.1 billion in intraregional trade in 2023. The centre is expected to deepen financial markets by leveraging Tanzania’s pioneering financial interoperability, which has driven mobile money adoption and financial inclusion since 2018, positioning the country as a leader in digital finance in Africa.

To ensure global credibility, the TNBC is collaborating with private sector stakeholders, international financial institutions, and development partners to align the IFSC with international standards, including anti-money laundering and counter-terrorism financing regulations, as recognized by the Financial Action Task Force (FATF) in 2014. The centre will also prioritize digital financial solutions to enhance efficiency and accessibility, addressing gaps in Tanzania’s financial ecosystem.

Despite the optimism, challenges such as foreign exchange shortages and a public debt level of 47% of GDP, as noted by the IMF, could pose risks. The government plans to address these concerns while rolling out further details at the upcoming Tanzania-Uganda Business Forum, where regional cooperation will be critical. With economic growth projected at 5.4% for 2024, the IFSC is poised to drive job creation, sustainable development, and cement Tanzania’s role as a financial powerhouse in East Africa.