Dodoma. The Parliament of the United Republic of Tanzania has ratified the Agreement for the Establishment of the Africa Finance Corporation (AFC) of 2007, allowing Tanzania to join as a member state.
By joining the AFC, member countries gain access to funding for investment, support for intra- and inter-African trade, and contributions to the development of the energy and extractives sectors.
While presenting details for ratification of the resolution on June 26, 2025, in Parliament in Dodoma, Minister of Finance Dr. Mwigulu Nchemba stated that membership is a prerequisite for benefiting from loans and guarantees offered by the AFC.
He explained that the AFC provides commercial loans to African financial institutions and engages in other banking activities aimed at promoting investment.
“The United Republic of Tanzania proposes to join as a member without purchasing shares,” said Dr. Nchemba.
He added that ratifying the AFC agreement will broaden access to investment funding in the country. Local financial institutions will benefit from funds sourced from the AFC, which will be used to issue loans to various economic sectors.
“It will also facilitate access to grants and technical assistance in project preparation, financing, and implementation of development programs. Moreover, it will attract investment due to the AFC’s A3 credit rating in commercial loan services,” Nchemba emphasized.
The Agreement establishing the Africa Finance Corporation was signed on May 28, 2007. Headquartered in Nigeria, the corporation is jointly owned by the public and private sectors.
According to Nchemba, the public sector owns 59 percent of all shares, while the private sector owns 41 percent.
“The private sector ownership also includes a 2 percent joint stake held by international institutions; the African Development Bank (AfDB) and the African Reinsurance Corporation,” he said.
As of May 2025, 44 African countries have joined the corporation. Of these, 28 have joined as non-shareholding members, while 16 are shareholder countries.
Jackline Kuwanda is a journalist for The Chanzo based in Dodoma. You can reach her at: jaquelinevictor88@gmail.com.
