BY THE ARUSHA NEWS REPORTER
FOREIGNERS can now invest in Tanzania Government Treasury Bills and Bonds following changes to the country’s foreign exchange rules.
The Bank of Tanzania (BoT) announced recently that the changes have opened government securities market to more foreign investors.
“The reform aims to broaden access to the government securities market,” BoT said, adding that the changes also intended to strengthen financial markets and promote Tanzania as an attractive investment destination.
Treasury Bills and Bonds allow investors to lend money to the government for a fixed period and earn interest. Previously, foreign participation was mainly limited to investors from the East African Community (EAC) and Southern African Development Community (SADC) countries only and Tanzanians living abroad.
Foreign investors will be able to buy the securities through financial institutions approved to handle government investments. An Arusha businessman welcomed the move, saying opening the market could bring more investment into the country.
“This is a positive move because it can bring more investment into Tanzania and give the government access to more funds for development,” he said. The change could widen the pool of people willing to lend money to the government and provide another source of funds for development and other public spending.
