The Minister for Finance, Dr. Mwigulu Lameck Nchemba (MP), has called on developed countries to reduce loan costs and extend repayment periods in order to enable developing countries, including those in Africa, to implement development projects that will stimulate economic growth and improve the livelihoods of their citizens.
Dr. Nchemba made this appeal in New York, USA, while contributing to a discussion at the United Nations Economic and Social Council (ECOSOC) Forum on Financing for Development Follow-Up (FfD Forum) 2025, taking place at the UN Headquarters.
He emphasized that the methodologies used to determine credit ratings must change to better reflect the actual debt repayment capacity of developing nations.
He also advocated for greater use of blended finance, expansion of risk guarantees by Multilateral Development Banks (MDBs), and the implementation of debt transparency initiatives to reduce perceived risk costs.
Dr. Nchemba acknowledged the efforts made by various nations and financial institutions in improving access to concessional loans.
However, he noted that many developing countries, including Tanzania, still face challenges due to high loan costs and burdensome debt repayment conditions, which negatively impact their national budgets.
He proposed three key areas for action: improving access to concessional financing, accelerating debt restructuring processes, and increasing access to blended financing that is aligned with development needs and climate resilience.
On the role of the private sector, Dr. Nchemba stressed its importance in achieving the Sustainable Development Goals (SDGs) through building inclusive and resilient economies that ensure no one is left behind.
He recommended strengthening investment facilitation platforms that connect opportunities with international capital, stimulate positive impact, and promote inclusive and sustainable development. He reaffirmed Tanzania's readiness to partner with all stakeholders to unlock private investment.
Dr. Nchemba highlighted that under the leadership of Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, the country has undertaken major policy reforms to improve financial access, enhance transparency in public spending, and expand the availability of concessional loans, especially for women, youth, and people with special needs.
“We are advancing financial inclusion through digital platforms and formalizing the informal sector to enhance access to markets and finance. At the international level, we call for greater alignment of private investment with national priorities, enhanced global cooperation, and the establishment of support institutions such as an International Investment Support Centre for Least Developed Countries (LDCs),” said Dr. Nchemba.
He added that Tanzania is developing sustainable finance strategies, thematic bonds, and leveraging digital innovation to attract resources, including diaspora investment, while promoting investment in climate-resilient and sustainable infrastructure.
The UN Forum on Financing for Development brings together Ministers of Finance, Planning, Foreign Affairs, and other sectors, along with development partners and international financial institutions, to assess the implementation of UN resolutions on development financing.