By Costantine Muganyizi
Tanzania has taken another significant step towards integrating its financial markets with the global economy after the central bank amended the country’s foreign exchange regulations to allow all non-resident investors to invest in government Treasury bills and bonds.
The move, announced in a public notice signed by Bank of Tanzania (BoT) Governor Emmanuel Tutuba, removes previous restrictions that limited participation in the government securities market to investors from the East African Community (EAC), the Southern African Development Community (SADC) and the Tanzanian diaspora.
“The amendments, among other things, permit all non-resident investors to invest in Treasury bills and bonds issued by the Government of the United Republic of Tanzania,” Governor Tutuba said in the notice.
The new regulations, issued under the Foreign Exchange Act through Government Notice No. 206 of 2026, officially broaden access to one of Tanzania’s most important investment markets, signalling growing confidence in the country’s macroeconomic stability and financial sector reforms.
Governor Tutuba said the reform is intended to strengthen Tanzania’s capital markets while enhancing the country’s appeal to international investors.
“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,” he said.
The policy change is expected to inject fresh foreign capital into the domestic debt market, increase competition among investors and improve liquidity in government securities. Greater international participation could also help lower government borrowing costs over time while expanding funding options for national development projects.
For the financial sector, the amendments are likely to boost activity among banks, fund managers, brokers and approved Central Depository Participants (CDPs), which will now facilitate investments from a much wider pool of international clients.
According to the regulations, non-resident investors will participate in the market through approved CDPs in accordance with the amended regulations and other applicable laws.
The reforms also send a positive signal to global investors seeking stable frontier markets offering attractive fixed-income investment opportunities. By opening the government securities market beyond regional investors, Tanzania positions itself more competitively alongside emerging economies that have liberalised access to domestic debt markets.
For businesses, stronger and more liquid financial markets can enhance investor confidence in the economy, support macroeconomic stability and create conditions that encourage greater private sector investment. Improved capital inflows can also strengthen foreign exchange reserves and reinforce confidence in Tanzania’s broader investment climate.
The announcement comes as Tanzania continues implementing reforms aimed at modernising its financial sector, attracting foreign direct investment and supporting long-term economic transformation.
Governor Tutuba encouraged prospective investors to use approved market intermediaries when accessing the government securities market. “Therefore, non-residents may participate in the Government securities market through the approved Central Depository Participants (CDPs), subject to the provisions of the Foreign Exchange (Amendment) Regulations, 2026, and other applicable laws and operational requirements,” he said.
