In the video interview during the 2023 Public Finance Conference, Dr Charles A. Mwamwaja, Commissioner for Financial Sector Development at the Ministry of Finance in Tanzania, emphasised how Tanzania has leveraged its Integrated National Financing Framework (INFF) to create a transformative impact on the country's development landscape.
Traditionally reliant on sources such as taxes, loans, and grants, Tanzania has encountered persistent financing gaps in its national development plans. Recognising the need for innovative solutions, the government made a strategic decision in May 2021 to adopt innovative financing mechanisms, ushering in a new era of collaboration between the public and private sectors.
Dr. Mwamwaja highlighted the multifaceted benefits Tanzania has gained during their INFF process. By leveraging innovative financing avenues, the Government has not only diversified its funding sources but also tapped into the vibrant financial markets within the country. The success of recent corporate issuances, including green bonds and social bonds targeting marginalized groups, underscores the growing investor confidence and appetite for sustainable development initiatives.
For governments who would like to adopt the INFF method, Dr Mwanwaja highlights an integrated approach where the private sector complements governmental efforts as crucial to addressing economic challenges. Countries should consider creating a conducive environment and reviewing policies to support innovative financing approaches. Capacity building, particularly mindset change and understanding market listing, is crucial for effective implementation.