Tanzania urges Citibank to expedite credit rating

Finance and Planning, Dr Mwigulu Nchemba. PHOTO | FILE

Washington DC. The government has urged Citibank to expedite Tanzania’s credit rating exercise in an effort to put the country on the right path to

acquire more development funds from international financial markets.

Presenting the 2021/22 budget in Parliament in June last year (2021), Finance and Planning minister, Dr Mwigulu Nchemba said Tanzania would finalise the sovereign credit rating process to facilitate access to international financial markets through issuance of sovereign bonds. The rating, he said, would enable Tanzania to measure its position in the international financial markets and assist prospective lenders in the assessment of the risks.

He categorically said to access the global Eurobond market, the country requires an official credit rating for the global Eurobond market which is estimated to have more than $30 trillion available for the countries that seek financial resources through loans from highly liquid international capital markets to finance development projects.

This approach is also used by international organisations such as the World Bank and the African Development Bank to fund their projects around the world.

And, speaking after his meeting with senior executives from America’s Citibank and Japan’s Mitsubishi Bank, Dr Nchema said the credit rating would enable Tanzania to get more funds for development financing.

“I promised in Parliament last year during the presentation of the 2021/22 budget that a credit rating would be concluded,” he said, urging Citibank to complete the exercise before July this year.