Tanzania Opens Government Bills and Bonds to All Foreign Investors

The Bank of Tanzania (BOT) has opened Tanzania’s Treasury bills and bonds market to foreign investors of any nationality, as announced in its notice dated 6th August 2026.

This puts and ending to a regime that previously restricted participation to residents of the East African Community (EAC), the Southern African Development Community (SADC), and the Tanzanian diaspora.

The reform was introduced through the Foreign Exchange (Amendment) Regulations, 2026, issued under the Foreign Exchange Act, Cap. 271, and published as Government Notice No. 206 of 2026 in the Government Gazette on 17th July 2026.

Non-resident investors will gain access to the market through approved Central Depository Participants (CDPs), subject to the provisions of the new Regulations and other applicable laws and operational requirements.

BOT framed the reform as part of its broader effort to deepen domestic financial markets and strengthen Tanzania’s standing as an investment destination.

The full text of the Foreign Exchange (Amendment) Regulations, 2026 has been published on BOT’s website for investors and CDPs to consult directly.

Investors and CDPs seeking further clarification on the new rules have been directed to contact either their CDP or BOT directly.

Tanzania’s Government Securities Market

The market was previously governed by the Foreign Exchange Regulations, 2022, published under Government Notice No. 294 of 2022, which had already widened eligibility from EAC residents alone to include residents of the SADC region and Tanzanian citizens in the diaspora.

In a related liberalization move on 31 December 2024, BOT replaced fixed coupon rates on Treasury bonds with market-determined rates set by supply and demand in the secondary market, a change intended to improve price discovery and attract greater investor interest.

At the end of June 2026, Tanzania’s external debt stock stood at USD 35,606.1 million, of which 83.1% was public debt, and the remainder private sector external debt.

Central government external debt came to USD 29,606.0 million, while domestic debt, the market non-resident investors have just gained access to, stood at USD 14,989.7 million, equivalent to 29.6% of Tanzania’s USD 50,595.8 million national debt.

Treasury bills are used as a primary instrument for raising funds to meet temporary budget deficits and regulate the money supply. Currently, BOT issues on behalf of the Government of Tanzania, treasury bills in four maturities, namely 35, 91, 182 and 364 days. The minimum bid amount for Treasury bills is TZS 500,000.

Treasury bonds are long-term debt instruments with a maturity period of more than one year and pay interest on a semiannual basis. Treasury bonds issued by BOT are in six maturities: 2, 5, 7, 10, 15, 20, and 25 years. The minimum bid amount for Treasury bonds is TZS 1,000,000.

Both instruments are sold through BOT auctions via the Central Depository System (CDS) and can subsequently be traded on the secondary market at the Dar es Salaam Stock Exchange (DSE).