Tanzania is moving to establish a Dar es Salaam International Financial Centre (DIFC) as part of a broader strategy to attract foreign investment, deepen financial markets and position the country as a regional investment hub, the government has said.
Finance Minister Khamis Mussa Omar announced the plan on Thursday while presenting the 2026/27 national budget in Parliament, saying the initiative will serve as a gateway for global capital and support growth across key sectors of the economy.
The proposed financial centre is expected to strengthen Tanzania’s integration into global financial markets at a time when the country is experiencing rising inflows of foreign direct investment and increasing investor confidence.
According to official figures cited by the minister, foreign direct investment rose to US$21.7 billion in 2024, up from US$14.1 billion in 2018, reflecting sustained improvements in the country’s investment climate.
The government attributed the increase to wide-ranging regulatory reforms aimed at reducing the cost of doing business and simplifying administrative procedures for investors.
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As part of earlier reforms under its first regulatory blueprint, Tanzania reviewed 55 laws and eliminated or reduced 374 fees and levies, easing operational costs for businesses and encouraging new investments.
Authorities are now finalising a second phase of reforms designed to further harmonise fees across public institutions and streamline payment systems, in a bid to improve efficiency and transparency.
“The private sector remains a critical pillar of economic growth, employment creation and development financing,” the minister said, adding that the government will continue building a more competitive and investor-friendly environment.
The planned Dar es Salaam financial centre is expected to position Tanzania alongside other African jurisdictions seeking to develop specialised financial hubs to attract cross-border capital flows, structured finance and investment services.
It also forms part of a wider push to improve access to financing for businesses, particularly exporters and small and medium-sized enterprises.
The government said it is formalising credit guarantee schemes previously managed by the Bank of Tanzania and plans to establish an independent credit guarantee corporation to improve access to finance.
The new institution is expected to reduce lending risks for commercial banks and encourage greater credit extension to the private sector.
Tanzania is also strengthening partnerships with international development and investment institutions, including commercial banks, pension funds and multilateral financiers such as the International Finance Corporation, Africa Finance Corporation and the Asian Infrastructure Investment Bank.
These partnerships are aimed at mobilising capital and technical expertise to support large-scale infrastructure and development projects across the country.
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Economists say the establishment of a financial centre in Dar es Salaam could enhance Tanzania’s profile as an investment destination, but its success will depend on regulatory credibility, market depth and the ability to attract international financial institutions.
If effectively implemented, the DIFC could become a key pillar in Tanzania’s long-term strategy to transform itself into a regional financial and logistics hub in East Africa.
