CRDB Bank’s infrastructure bond generates Sh323 billion

CRDB Bank’s infrastructure bond generates Sh323 billion

Dar es Salaam. The oversubscription of CRDB Bank’s Samia Infrastructure Bond, which raised Sh323 billion, has drawn mixed reaction over investor appetite and trust in Tanzania’s capital markets.

The bond targeted to raise Sh150 billion but investors oversubscribed it by 115 percent, according to a statement issued by the bank yesterday.

Named Samia Infrastructure Bond, the bond is a financial initiative designed to enhance rural infrastructure projects managed by the Tanzania Rural and Urban Roads Agency (Tarura).

The money raised through the bond by CRDB Bank PLC, will go towards financing contractors executing projects under Tarura’s upcoming tenders.

The Minister of State, President’s Office for Regional Administration and Local Government (RALG), Mr Mohamed Mchengerwa, emphasised that the bond’s success marks a significant step in addressing Tanzania’s infrastructure challenges.

“The Sh323 billion raised will accelerate road construction and other critical projects, directly improving the lives of citizens. It also demonstrates the strength of Tanzania’s financial system in supporting large-scale national development initiatives,” he said.

Financial analysts believe the bond’s oversubscription reflects investor confidence and a stable liquidity in the local capital markets.

“That means there is enough liquidity locally and the government can tap that potential to borrow domestically and reduce foreign commercial loans which are actually expensive,” said Prof Abel Kinyondo of the University of Dar es Salaam.

However, Prof Kinyondo warned that the performance may sometimes have negative interpretation about the domestic business and investment environment.

“Sometimes, staying with idle money like that tells something about the possible risks associated with the local business environment. The government needs to ask itself why these people are staying with idle cash instead of putting them in productive activities like building some manufacturing plants?” he said, adding that something must be done to stimulate other investment opportunities.

Independent financial market analyst, Mr Christopher Makombe, said the oversubscription signifies strong investor demand and investor confidence on CRDB financial health.

He said the funding will mean faster completion of projects as CRDB supports contractors as well as government by ensuring timely payments.

“Another reason which might have made the bond attractive is the coupon payment plan which is four times a year, unlike other government bonds which pay coupon twice a year,” he said.

“To the overall Tanzania market, the news is positive and indicates a possibility of drop in yields going forward as demand for bonds increases and liquidity seems to be available for that. The bond success is setting ripe ground for other corporate issuance in the future,” he added.

CRDB Bank chief executive officer, Mr Abdulmajid Nsekela, reinforced that the bank’s ability to secure more than double the targeted amount signifies trust in the financial institution’s stability.

This achievement demonstrates the strong investment potential within our market. Investors showed great enthusiasm, knowing that their funds are secure with a well-structured project. We take immense pride in earning the trust of Tanzanians,” said Mr Nsekela.

The Samia Infrastructure Bond, the second phase of CRDB Bank’s Five-Year Medium-Term Note Programme, follows the success of the Kijani Bond, which raised Sh171.82 billion—over four times its initial target of Sh40 billion.

Capital Markets and Securities Authority (CMSA), Mr Nicodemus Mkama, highlighted that the listing of the bond on the Dar es Salaam Stock Exchange (DSE) has increased corporate and institutional bond investments by 38.9 percent, now valued at Sh1.16 trillion.

“The bond is a clear reflection of the strength of our capital markets, positioning the DSE as an integral player in facilitating investment in Tanzania’s national infrastructure projects,” said Mr Mkama.

DSE chief executive officer, Mr Peter Nalitolela echoed similar sentiments, stating that the strong investor response enhances liquidity in financial markets.

“We are pleased to see initiatives like the Samia Infrastructure Bond bringing prosperity to investors and the country,” he said.

Tarura chief executive officer, Mr Victor Seff, emphasised that the timely availability of funds will accelerate road construction and other infrastructure projects.

“We have many ongoing projects nationwide, but financing has always been a challenge. Now, contractors will receive timely payments, ensuring projects are completed as planned,” he said.

The bond offers a 12 percent annual return paid quarterly.

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Tanzania Confirms Outbreak of Marburg Virus Disease
Tanzania Foreign Investment News
Chief Editor

Tanzania Confirms Outbreak of Marburg Virus Disease

Dodoma — Tanzania today confirmed an outbreak of Marburg virus disease in the northwestern Kagera region after one case tested positive for the virus following investigations and laboratory analysis of suspected cases of the disease.

President of the Republic of Tanzania, Her Excellency Samia Suluhu Hassan, made the announcement during a press briefing alongside World Health Organization (WHO) Director-General, Dr Tedros Adhanom Ghebreyesus, in the country’s administrative capital Dodoma.

“Laboratory tests conducted in Kabaile Mobile Laboratory in Kagera and later confirmed in Dar es Salaam identified one patient as being infected with the Marburg virus. Fortunately, the remaining suspected patients tested negative,” the president said. “We have demonstrated in the past our ability to contain a similar outbreak and are determined to do the same this time around.”

A total of 25 suspected cases have been reported as of 20 January 2025, all of whom have tested negative and are currently under close follow-up, the president said. The cases have been reported in Biharamulo and Muleba districts in Kagera.

“We have resolved to reassure the general public in Tanzania and the international community as a whole of our collective determination to address the global health challenges, including the Marburg virus disease,” said H.E President Hassan.

WHO is supporting Tanzanian health authorities to enhance key outbreak control measures including disease surveillance, testing, treatment, infection prevention and control, case management, as well as increasing public awareness among communities to prevent further spread of the virus.

“WHO, working with its partners, is committed to supporting the government of Tanzania to bring the outbreak under control as soon as possible, and to build a healthier, safer, fairer future for all the people of Tanzania,” said Dr Tedros. “Now is a time for collaboration, and commitment, to protecting the health of all people in Tanzania, and the region, from the risks posed by this disease.”

Marburg virus disease is highly virulent and causes haemorrhagic fever. It belongs to the same family as the virus that causes Ebola virus disease. Illness caused by Marburg virus begins abruptly. Patients present with high fever, severe headache and severe malaise. They may develop severe haemorrhagic symptoms within seven days.

“The declaration by the president and the measures being taken by the government are crucial in addressing the threat of this disease at the local and national levels as well as preventing potential cross-border spread,” said Dr Matshidiso Moeti, WHO Regional Director for Africa. “Our priority is to support the government to rapidly scale up measures to effectively respond to this outbreak and safeguard the health of the population,”

Tanzania previously reported an outbreak of Marburg in March 2023 – the country’s first – in Kagera region, in which a total of nine cases (eight confirmed and one probable) and six deaths were reported, with a case fatality ratio of 67%.

In the African region, previous outbreaks and sporadic cases have been reported in Angola, the Democratic Republic of the Congo, Ghana, Kenya, Equatorial Guinea, Rwanda, South Africa and Uganda.

Marburg virus is transmitted to people from fruit bats and spreads among humans through direct contact with the bodily fluids of infected people, surfaces and materials. Although several promising candidate medical countermeasures are currently undergoing clinical trials, there is no licensed treatment or vaccine for effective management or prevention of Marburg virus disease. However, early access to treatment and supportive care – rehydration with oral or intravenous fluids – and treatment of specific symptoms, improve survival.

Source: allafrica.com

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