With an investment of over USD 11 million in Class B shares, the United Republic of Tanzania’s National Social Security Fund (NSSF) joins the Eastern and Southern African Trade and Development Bank Group (TDB Group) as its 20th institutional shareholder.
TDB Group President Emeritus and Managing Director Admassu Tadesse said “This year, NSSF Tanzania is the second new institutional investor joining our community of shareholders, over and above other equity capital investment from existing shareholders. Alongside our sovereign shareholders such as Tanzania, the continued confidence of institutional investors in our ability to deliver on our mandate is a strong driving force behind our concerted efforts for sustainable development across the region.”
Institutional investors are keen on investing in companies with growth prospects, success, and strong governance. For the past few years, underpinned by a solid ESG framework, TDB’s net profits, assets and equity have consistently been growing, with 5-year compound annual growth rates of 11%, 13% and 15% respectively.
Director General, NSSF Tanzania Masha Mshomba, “NSSF’S vision is “to be a reliable and sustainable provider of social security services “. Therefore, investing in TDB orgurs well our strategy to diversify our investment portfolio and put our money in well performing investment opportunities in the region to further realise our vision.”
Since 2013, approximately 258 million has been invested into TDB’s Class B shares by institutional members such as pension funds, insurance companies, development finance institutions, and special funds including Rwanda’s Agaciro Development Fund, a sovereign wealth fund which joined earlier this week. Class B shares are denominated in USD dollars and pay attractive dividends. The successful mobilisation can be attributed to the Bank’s consistent growth and profitability, as well as triple bottom-line impact in the region it serves.
TDB Group Executive Corporate Affairs and Investor Relations Mary Kamari said, “We are very pleased that NSSF Tanzania has joined TDB Group as a shareholder. It is indeed a strong vote of confidence in our Group. NSSF joins other pension funds and institutional investors that have invested in TDB in the past 9 years. Tanzania is a key market for us across the region, and we are delighted to be able to work together with institutions on the continent as well as globally to scale-up our impact in the region.”
As TDB diversifies its portfolio and expands its geographical reach, the Group remains committed to Africa’s development by improving access to finance for sovereigns and private sector actors.