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Dev-News News Desk| East Africa. Urge- DevWire

Tanzania Opens Government Securities Market to Foreign Investors in Major Capital Markets Reform

DAR ES SALAAM, Tanzania — 7 August 2026

Tanzania has taken a significant step towards deepening its capital markets by opening its Treasury bills and government bonds market to all foreign investors, a reform expected to broaden the country's investor base, improve market liquidity and strengthen long-term financing for national development.

The policy change, announced by the Government of Tanzania through the Bank of Tanzania, removes previous restrictions that limited foreign participation in the domestic government securities market. By allowing international institutional and portfolio investors to participate directly, authorities aim to increase demand for government debt instruments while creating a more competitive and diversified investment environment.

The reform comes as Tanzania continues implementing broader financial sector reforms designed to mobilise domestic and international capital for infrastructure, industrialisation and economic transformation. Access to deeper and more liquid capital markets is increasingly viewed as essential for financing transport networks, energy projects and other strategic investments without placing excessive pressure on public finances.

For East Africa, the decision reinforces Tanzania's growing role within regional financial markets. More open government securities markets can improve investor confidence, encourage cross-border capital flows and support regional financial integration, complementing wider East African Community initiatives to harmonise capital markets and payment systems.

The success of the reform will ultimately depend on maintaining macroeconomic stability, transparent market regulation and investor confidence. If effectively implemented, the measure could position Tanzania as one of East Africa's more attractive destinations for long-term institutional investment while providing government with greater flexibility in financing national development priorities.

Development significance: The reform represents more than a capital markets adjustment. It strengthens Tanzania's ability to mobilise long-term investment for development while supporting broader regional efforts to build integrated and resilient financial markets.

Source: Bank of Tanzania / Government of Tanzania

Dev-News Desk| East Africa. Urge- DevWire