Dar es Salaam - Tanzania has officially opened its Treasury bills and government bonds market to all non-resident foreign investors following amendments to the Foreign Exchange Regulations, 2026, marking a significant step in the country's efforts to deepen domestic financial markets and attract international capital.
The Bank of Tanzania (BoT) announced the reforms in a public notice issued on 6 August 2026, following the publication of the amended regulations in the Government Gazette on 17 July 2026. The amendments, issued under the Foreign Exchange Act, Cap. 271, now allow all eligible non-resident investors to invest in government securities, removing previous restrictions that limited participation to residents of the East African Community (EAC), the Southern African Development Community (SADC) and members of the Tanzanian diaspora.
According to the central bank, the reforms are intended to broaden access to Tanzania's government securities market while strengthening the country's financial sector and positioning it as a more attractive destination for global investment.
"The reform aims to broaden access to the Government securities market and is part of the Bank's ongoing efforts to deepen the domestic financial markets and promote Tanzania as an attractive investment destination."
Under the revised framework, foreign investors will be able to purchase Treasury bills and government bonds through approved Central Depository Participants (CDPs), subject to the provisions of the amended regulations, applicable laws and operational requirements.
Treasury bills and government bonds are government-issued debt securities used to finance public expenditure and long-term development projects. Investors receive periodic interest payments and the return of their principal upon maturity, making the instruments a relatively low-risk investment backed by the government.
By expanding access to international investors, Tanzania is expected to increase demand for its government securities, improve market liquidity and diversify its investor base. Greater competition in government debt auctions could also help lower borrowing costs while providing the government with more sustainable financing for infrastructure and other development priorities.
The reforms form part of Tanzania's broader strategy to modernize its financial system and strengthen capital markets. Opening the government securities market to global investors is expected to improve market efficiency, increase foreign capital inflows and integrate Tanzania more closely into regional and international financial markets.
Economists note that a broader investor base can enhance the resilience of the country's debt market by reducing reliance on domestic institutional investors. Increased foreign participation may also improve price discovery and create more stable funding opportunities for government projects.
However, experts caution that the benefits of greater foreign participation will depend on maintaining sound macroeconomic policies, transparent regulations and effective market oversight. Stable economic conditions and investor confidence will be critical to ensuring the reforms deliver long-term value.
The Bank of Tanzania has advised interested foreign investors to participate through authorized Central Depository Participants and comply with all regulatory and operational requirements outlined in the amended regulations.
The latest reforms underscore Tanzania's commitment to creating a more competitive investment environment while supporting sustainable economic growth. By opening its Treasury bills and government bonds market to investors worldwide, the country is positioning itself to attract greater foreign investment, strengthen its financial markets and secure additional resources for national development.