DAR ES SALAAM: THE Higher Education Students’ Loans Board (HESLB) plans to raise about 4tri/- through capital markets as it seeks to diversify funding sources and extend higher education financing to more Tanzanian students.
The board said the initiative aims to establish a sustainable funding model that does not rely on a single source of finance.
Speaking yesterday at a meeting with media editors organised by the Office of the Treasury Registrar in Dar es Salaam, HESLB Executive Director Dr Bill Kiwia said the strategy also supports Tanzania’s Development Vision 2050.
The Vision emphasises investment in human capital, skills development and building a knowledge-based economy driven by technology and innovation.
“The Vision obliges us to invest in human capital, develop skills and lay the foundation for an economy driven by knowledge, technology and innovation. To achieve the country’s one trillion-dollar economy development goals, it is essential to ensure Tanzanians acquire the education and skills required across various sectors of the economy,” said Dr Kiwia.
He said HESLB is exploring alternative financing mechanisms, including plans to issue a dedicated education bond to diversify its funding sources and expand support for higher education students.
According to Dr Kiwia, the initiative is undergoing legal reviews and requires approval from the Capital Markets and Securities Authority (CMSA) and other relevant authorities.
The board expects to issue the bond within the next two to three years, subject to the completion of the necessary legal and regulatory procedures.
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He also called on stakeholders, including financial institutions and the private sector, to partner with HESLB through grants, donations and other contributions to increase education funding and widen opportunities for young people.
On the board’s achievements, Dr Kiwia said HESLB has disbursed approximately 9tri/- in student loans since its establishment in 2004, including about 4.6tri/- during the tenure of the sixth phase government.
“More than one million Tanzanians have benefited from student loans since the board was established,” he said.
Government funding for student loans has also increased steadily over the years. For the 2026/27 financial year, the government has allocated about 1.06tri/- to HESLB, an amount expected to support at least 300,000 students.
Dr Kiwia said the allocation represents a 15.6 per cent increase from the 916.7bn/- provided in the 2025/26 financial year, when 289,932 students benefited from loans and other funding programmes.
In the first allocation round for the 2026/27 academic year, announced on October 10 this year, HESLB allocated 535.7bn/- to 165,775 students.
The beneficiaries include undergraduate and diploma students, continuing beneficiaries and recipients of the Samia Scholarship.
The board has also expanded loan coverage to diploma students, a programme introduced in the 2023/24 academic year.
In 2026/27, a total of 24,978 diploma students are expected to receive funding, including 14,000 first-year students.