Tanzania opens government debt market to all foreign investors

Tanzania's central bank has announced a significant easing of foreign exchange regulations, opening its government securities market to all overseas investors. The move, confirmed in a statement on Thursday, is designed to deepen the country's domestic financial markets and strengthen its appeal as an investment destination.

Previously, participation in the Treasury bill and bond market was limited to residents of the East African Community, the Southern African Development Community, and Tanzanians living abroad. The new rules remove these restrictions, granting global investors access to the government's debt instruments.

The policy shift comes as the administration of President Samia Suluhu Hassan seeks alternative revenue streams, following reductions in aid from international partners. The government has been under financial pressure as external support has dwindled.

President Hassan, who has been in office since 2021, secured a second term in an election last year that was disputed by opponents. Critics have alleged the vote was rigged and marred by the exclusion of her main challengers, leading to unrest. The president has consistently rejected these accusations, defending the fairness of the electoral process and pushing back against criticism of her government's human rights record.