Tanzania has opened its government securities market to all foreign investors, marking a major shift in its investment policy as President Samia Suluhu Hassan’s administration seeks to attract fresh capital and diversify government revenue.
Tanzania relaxes FX rules, opening government debt market to investors from around the world
- Tanzania has opened its government securities market to all foreign investors, ending previous restrictions.
- The move is part of President Samia Suluhu Hassan’s strategy to attract new capital and diversify government revenue sources.
- The Bank of Tanzania hopes the policy will deepen domestic financial markets and broaden the investor base.
- Expanding access to government debt comes as Tanzania seeks alternative funding amid reduced aid from international partners.
The Bank of Tanzania said overseas investors can now purchase government-issued Treasury bills and bonds, removing restrictions that previously limited participation to residents of the East African Community (EAC), the Southern African Development Community (SADC), and members of the Tanzanian diaspora, according to a Reuters report.
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In a statement, the central bank said the policy change is designed to deepen the country’s domestic financial markets, broaden the investor base and position Tanzania as a more attractive destination for international investment.
The move comes as the government looks for new sources of funding following reductions in financial assistance from some international development partners. Expanding access to government debt is expected to increase capital inflows and strengthen the country’s ability to finance public spending.
The policy also reflects Tanzania’s broader efforts to improve its investment climate and attract more foreign participation in its financial markets, at a time when many African governments are seeking alternative financing amid tighter global funding conditions.
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The announcement comes against a politically sensitive backdrop. President Samia Suluhu Hassan, who has been in office since 2021, secured another term in last year’s election. However, the vote was disputed by opposition parties, which alleged widespread irregularities and criticised the exclusion of several leading challengers. The election was also marked by unrest in parts of the country.
Hassan has consistently rejected allegations that the election was rigged and has defended both the credibility of the electoral process and her administration’s human rights record.
