Tanzania INFF case study: Integrating financing frameworks at national and local levels

This case study explores how Tanzania has implemented an Integrated National Financing Framework (INFF) to mobilize sustainable finance across national and subnational levels. By strengthening domestic resource mobilization, introducing innovative instruments such as SDG bonds and sukuk and developing SDG investor maps and bankable project pipelines, Tanzania is aligning public and private finance with development priorities. The experience highlights the importance of localization, institutional capacity, and international cooperation in translating financing strategies into tangible development outcomes.

‍Key messages: 

1. ‍Tanzania’s INFF has been rolled out for both national and subnational governments level on the mainland, as well as in Zanzibar. This allows for a flexible approach where local authorities can develop alternative financing instruments in line with the specific context.
2. Successful financing reforms require close collaboration, where domestic policy changes are combined with adjustments to international rules and practices. To enhance tax revenue from international corporations and better fight illicit financial outflows, Tanzania is actively supporting the UN Framework Convention on International Tax Cooperation. As part of the process towards a more favourable credit rating, the country is also contributing to the development of an African credit rating agency.
3. SDG-themed bonds have been explored at the sovereign and municipal levels, which has also inspired corporate issuances. This is due to efforts in legal and regulatory framework as well as regional and international cooperation in credit rating.
4. An SDG investor map has been developed both in mainland Tanzania and in Zanzibar to facilitate a sustainable private finance ecosystem. The integration of the SDG investor maps into the local websites of the Tanzania Investment Centre and the Zanzibar Investment Promotion Authority is not only a strong sign of ownership, but also an important opportunity to tailor the analysis to local needs.
5. Institutional capacities for preparing bankable projects are crucial, especially to ensure financing is directed to ventures with sufficient returns and payment capacities. Going forward, particular focus will be on enhanced sustainability-linked project pipelines to attract investors and businesses at various levels, including through an Integrated Development and Growth Facility

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