ADDIS ABABA, Aug 7 – Tanzania has opened its government securities market to all foreign investors after easing foreign exchange regulations that previously restricted access to Treasury bills and government bonds.
The Bank of Tanzania announced the policy change on Thursday, saying the decision is intended to deepen the country’s domestic financial markets and position Tanzania as a more attractive destination for international investment.
Under the previous framework, participation in Tanzania’s government securities market was limited to residents of the East African Community (EAC), the Southern African Development Community (SADC) and members of the Tanzanian diaspora.
The latest reforms remove those restrictions, allowing overseas investors from all jurisdictions to invest directly in government-issued Treasury bills and bonds.
According to the central bank, the liberalisation is expected to broaden the investor base, improve liquidity in the domestic debt market and support the continued development of Tanzania’s capital markets.
The policy change comes as President Samia Suluhu Hassan’s administration seeks to diversify government funding sources amid reductions in financial support from some international development partners.
Expanding access to government securities could help attract additional foreign capital, strengthen public financing options and reduce reliance on traditional sources of external funding.
The reforms also reflect broader efforts by the government to improve Tanzania’s investment climate and deepen participation in its financial markets as the country pursues long-term economic growth.
The announcement comes against a backdrop of heightened political scrutiny following last year’s disputed general election. Opposition parties alleged that the vote was marred by irregularities and the exclusion of key challengers, claims that President Hassan has rejected while maintaining that the election was conducted fairly and defending her government’s human rights record.
The opening of the government securities market to global investors represents another step in Tanzania’s financial sector liberalisation and could enhance the country’s appeal to international portfolio investors seeking exposure to East African fixed-income markets.
