Tanzania opens doors to global investors’ participation in its security bonds market

DAR ES SALAAM: TANZANIA’S decision to open its government securities market to investors from all countries is expected to widen access to capital and enable the government to raise development financing at lower costs.

Speaking in an interview with the Tanzania Broadcasting Corporation (TBC) during the Aridhio programme, the Bank of Tanzania (BoT) Financial Markets Analyst Devotha Tesha, said the change follows amendments to foreign exchange regulations, which now allow investors from across the world to participate in the government bonds market.

According to the analyst, the move would deepen the government securities market by expanding the pool of domestic and foreign investors and increasing competition and efficiency in the financial sector.

“Greater participation by investors will increase competition and efficiency in the financial market, while giving the government wider opportunities to mobilise resources for implementing its development plans,” she said.

Additionally, she stated that the expansion of the investor base would also strengthen the government securities market and create more opportunities for financing development projects and national priorities.

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Moreover, Ms Tesha noted that the growing readiness of the government securities market and increased investor participation were important opportunities for supporting implementation of the country’s development agenda, including priorities outlined in the National Development Vision 2050.

The changes are therefore expected to strengthen the market’s capacity to mobilise both local and international capital while providing the government with a broader and potentially more competitive source of development financing.