Arusha. Domestic banks are increasingly positioning themselves as intermediaries between global capital providers and local enterprises as Tanzania embraces fund-of-funds and on-lending models to bridge persistent financing gaps across key sectors of the economy.
The financing structures, which pool resources from development finance institutions and international investors before channelling them through local banks, are gaining prominence as a means of extending affordable, long-term funding to businesses that would otherwise struggle to access capital.
The growing importance of these models featured prominently during a panel discussion on Fund-of-Funds and On-Lending Platforms at the Tanzania Investment Summit 2026 in Arusha on Tuesday, June 2, 2026, where executives from commercial banks, development finance institutions, and trade finance organisations outlined how the approach is widening access to credit while reducing investment risks.
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