The Latest

Tanzania Capital Account Liberalisation To Be Approved After Foreign Exchange Regulations

January 19, 2016
2 minute read
tanzania-capital-account-liberalisation

The Bank of Tanzania (BOT) has recently announced that the full Capital Account liberalisation, a measure to easy flow of cross border capital to and from a country, will be approved after the Foreign Exchange Regulations (BDC) 2015 are fully approved by the BOT.

The full Capital Account liberalisation proposed in 2013 is part of the Tanzania’s engagement with the East African Community (EAC) to support the formation of a unique common market with free-flows of capital between the member countries.

The measure was expected to be fully implemented by end of 2015; however, the last stages of development on the BDC currently constitute the government’s focus, explained BOT Director of Economic research and Policy, Mr. Johnson Nyella.

If Tanzania wants to attract more investments to its financial markets, the measure needs to be approved and accelerated since it is still at the draft stage, Mr. Nyella added.

After the liberalization, Tanzania will be allowed for free flows of investment capital to and from the country which would bring more efficiency on capital allocation in different instruments listed in the Dar es Salaam Stock Exchange (DSE), specially the debt ones, explained DSE CEO, Mr. Moremi Marwa.

Currently, only Tanzanians are allowed to buy Treasury Bills, Government Bonds and trade shares at the DSE.

On the other hand, Tanzanians will be also allowed to invest in securities in other markets as those in Uganda, Kenya and Rwanda.

According to the BOT, the country needs to proceed carefully with the liberalisation process since the country’s debt holds the highest rate compared with neighboring countries.

This is why many corporate and individual investors will be attracted to the DSE but the higher liquidity will affect returns on issued debt.

In September, 2014, the Capital Markets and Security Authority (CMSA) lifted controls on foreign share ownership restricted to a maximum of 60% that raised the capital inflows to the DSE by 40%.

Want to know more about Finance in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers Finance, plus regulations, key sectors, and investment opportunities—all in one place.

Download Free Guide
Tweet
Share
Share
Share
Related Posts
Tanzania Anthony Mavunde Kitila Mkumbo Small-Scale Miners Recommendations Report
Read More

Tanzania Plans Mining Fund and Credit Guarantees to Support Small-Scale Miners

The Government of Tanzania has received recommendations aimed at strengthening the small-scale mining sector through improved access to finance, technology, and geological information. The proposals include establishing a mining fund, expanding credit guarantees, and supporting mineral research to increase employment, reduce poverty, and boost economic growth.
Bank of Tanzania National Payment Systems Annual Report 2025
Read More

Tanzania Digital Credit Grows 32%, Digital Savings Value Triples, Mobile Money Transactions Near USD 100 Billion in 2025

Tanzania's digital credit value grew 32.29% to TZS 5,577.73 billion across 336.52 million transactions in 2025, while digital savings value tripled (up 263%) to TZS 3,181.24 billion, and volume rose 110% to 97.53 million transactions. Active mobile money users rose 19.89% to 75.78 million, and mobile payment value grew 28.30% to TZS 255,133.96 billion, driven by alternative credit scoring models that extend financing to MSMEs and smallholder farmers without traditional collateral.
Tanzania Dar es Salaam Business Center
Read More

Tanzania to Establish International Financial Centre in Dar es Salaam to Attract Global Capital

Tanzania's National Business Council has agreed to establish an International Financial Centre in Dar es Salaam, with Bank of Tanzania Governor Emmanuel Tutuba confirming the country meets prerequisites including political stability and a mature banking sector. The centre will operate under a dedicated legal framework yet to be enacted, targeting domestic and foreign investors seeking easier access to capital for large development projects.
Bank of Tanzania Financial Stability Index 2014-2025
Read More

Tanzania Banking Assets Up 23.8%, Capital Markets Up 35.1%, Social Security Up 21.4%, Insurance Up 6.8% in 2025

The Bank of Tanzania Financial Stability Report for 2025 shows banking sector total assets grew 23.8% to TZS 76,975 billion, private sector credit expanded 23.5% with mining up 30.1% and trade up 29.4%, and the non-performing loans ratio fell to 2.8%, the lowest in the East African Community. Total capital market investment rose 35.1% to TZS 63,096.4 billion, social security assets grew 21.4% to TZS 25,921 billion, insurance assets rose 6.8% to TZS 2,633.6 billion, and foreign reserves stood at USD 6,312 million covering 5.2 months of imports.

Want to know more about investing in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers key sectors, regulations, and investment opportunities—all in one place.

Download Free Guide