Tanzania has relaxed its foreign exchange rules to allow all overseas investors to buy government-issued Treasury bills and bonds, the central bank said.
The move is aimed at deepening Tanzania’s domestic financial markets and promoting the country as an investment destination, according to the central bank.
Previously, participation in Tanzania’s government securities market was limited to residents of the East African Community, the Southern African Development Community and members of the Tanzanian diaspora.
The new policy opens access to a broader pool of international investors and could increase foreign participation in the country’s government debt market.
The decision comes as President Samia Suluhu Hassan’s administration seeks new sources of revenue amid reductions in financial aid from international partners.
Tanzania has faced increased scrutiny over its political environment following last year’s disputed election.
Opponents alleged that the election was rigged and was followed by unrest after major challengers were excluded from the race.
Hassan, who has been president since 2021, has rejected criticism of her human rights record and defended the fairness of the election.
By opening its government securities market to all overseas investors, Tanzania is seeking to attract additional foreign capital while strengthening its domestic financial system.
The policy could also provide international investors with greater access to Tanzanian government debt and potentially broaden the country’s investor base.
