By Business Insider Reporter
Tanzania’s financial sector has entered a defining moment after CRDB Bank’s Al Barakah Sukuk shattered expectations on the Dar es Salaam Stock Exchange (DSE), raising TSh 125.4 billion and US$ 32.3 million – an oversubscription of 418 percent and 646 percent respectively.
Beyond the impressive numbers, analysts say the achievement marks a structural turning point for Tanzania’s economy, with Sukuk emerging as a powerful tool for financing development, boosting investor participation, and accelerating financial inclusion.
More than 1,000 investors – from individuals and religious groups to institutions and international participants across seven countries – joined the offer.
Local investors contributed over TSh 70 billion, while foreign participation exceeded TSh 50 billion, signalling growing global confidence in Tanzania’s Islamic finance ecosystem.
For CRDB Bank, the milestone is part of a wider plan to mobilise US$ 300 million in five years through Shariah-compliant instruments to fund development-oriented projects, expand SME financing, and support inclusive economic growth. But for Tanzania, the implications stretch even further.
Catalysing long-term development funding
Sukuk – unlike conventional bonds – are asset-backed and aligned with ethical investment principles. They are increasingly preferred by development partners and institutional investors looking for transparent, responsible financing structures.
The successful issuance by CRDB demonstrates that Tanzania can now attract substantial patient capital for infrastructure, manufacturing, energy projects, agriculture value chains, affordable housing, and SME growth—all priority areas under Dira 2050.
Deputy Permanent Secretary at the Ministry of Finance, Dr Elijah Mwandumbya, described the listing as a major leap for the nation’s capital markets. He noted that the performance reflects a maturing investment environment and a strong appetite for diversified, innovative financial products.
Strengthening the Capital Markets
The Sukuk listing boosted the DSE’s total market capitalization from TSh 13.5 trillion to TSh 13.7 trillion, while expanding the number of domestic and international investors.
The DSE CEO, Peter Nalitolela, said the oversubscription reinforces confidence in the regulatory architecture and is expected to deepen market liquidity.
The Capital Markets and Securities Authority (CMSA) also highlighted that the surge in Sukuk demand aligns with ongoing reforms aimed at strengthening the investment climate and broadening financial products available locally.
Driving financial inclusion, ethical investing
The overwhelming participation of ordinary Tanzanians – many buying Sukuk for the first time – signals rising financial literacy and growing demand for ethical investments aligned with Shariah principles.
The CRDB Group CEO, Abdulmajid Nsekela, said the results reflect trust in domestic markets and growing enthusiasm for diversified wealth-creation opportunities.
The Sukuk also empowers Islamic-faith communities and ethical investors who previously lacked Shariah-compliant long-term investment options.
Emerging Islamic Finance hub
With Zanzibar issuing its first government Sukuk in 2025 and multiple private-sector Sukuk issued since 2022, Tanzania is rapidly positioning itself as a competitive player in the global Islamic finance space – alongside Kuala Lumpur, Dubai, Manama, and Riyadh.
The Chairperson of the Shariah Advisory Board for Al Barakah, Abdul Mohammed, said the listing moves Tanzania closer to tapping into highly liquid Gulf Cooperation Council markets and attracting significant Middle Eastern investment.
The government is now finalizing dedicated Islamic finance legislation, expected to boost transparency, investor protection and competitiveness – key ingredients for positioning Tanzania as an Islamic finance gateway for East and Central Africa.
A transformative financial moment
From Premier Girls Secondary School’s education Sukuk to Zanzibar’s government Sukuk and now CRDB’s record-breaking Al Barakah Sukuk, Tanzania is constructing a vibrant ecosystem for Shariah-compliant finance.
More importantly, the scale of the oversubscription indicates one thing clearly: there is strong, unmet demand for innovative, ethical, and inclusive investment products in Tanzania. If the momentum continues – and if regulatory reforms move swiftly – the Sukuk market could become one of the country’s most important engines for long-term development financing over the next decade.
