Tanzania Opens Treasury Bills and Bonds to All Foreign Investors

The Bank of Tanzania has opened the country’s Treasury bills and government bonds market to all non-resident investors, ending previous restrictions that limited foreign participation to residents of the East African Community (EAC), the Southern African Development Community (SADC) and the Tanzanian diaspora.

The policy change follows the issuance of the Foreign Exchange (Amendment) Regulations, 2026 under the Foreign Exchange Act, Cap. 271.

The regulations were published through Government Notice (G.N.) No. 206 of 2026 in the Government Gazette on July 17, 2026.

Under the new regulations, non-resident investors from outside the EAC and SADC can now invest in Treasury bills and bonds issued by the Government of the United Republic of Tanzania.

The Bank of Tanzania said the amendments are intended to broaden access to the government securities market as part of its efforts to deepen Tanzania’s domestic financial markets and promote the country as an investment destination.

“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,” the central bank said.

Foreign Investors to Access Securities through CDPs

The Bank of Tanzania said non-resident investors will be able to participate in the government securities market through approved Central Depository Participants (CDPs).

Their participation will be subject to the Foreign Exchange (Amendment) Regulations, 2026, as well as other applicable laws and operational requirements.

The change expands the pool of foreign investors that can access Tanzania’s government debt market. Previously, participation by non-residents was restricted to investors from the EAC and SADC regions, together with members of the Tanzanian diaspora.

The previous framework therefore excluded investors from other parts of the world from participating in Tanzania’s government securities market.

Tanzania Previously Restricted Foreign Access

Before the July 2026 amendments, Tanzania operated under a foreign exchange framework that placed restrictions on cross-border participation in its financial markets.

The Foreign Exchange Regulations, 2022 provided the regulatory framework for foreign exchange transactions and defined a prescribed territory under which certain transactions and investments were permitted.

For government securities, the eligible foreign investor base was limited to residents of the EAC and SADC and the Tanzanian diaspora.

Investors outside these groups, including institutional investors and private investors from markets such as the United States, United Kingdom, Europe and Asia, were not eligible to participate in the government securities market under the previous restrictions.

The 2022 framework also contained controls on cross-border capital movements.

Among the measures were requirements governing foreign exchange transactions and restrictions on Tanzanian residents opening and maintaining offshore bank accounts without written approval from the Governor of the Bank of Tanzania.

The framework was designed to regulate the movement of capital across Tanzania’s borders and the use of foreign exchange.

Government Securities Market Undergoing Reforms

The opening of the market to all non-resident investors follows other changes to Tanzania’s government securities market.

Historically, the pricing of government bonds involved fixed coupon rates, with rates remaining unchanged across successive auctions in some periods.

The pricing structure limited the extent to which bond yields could adjust to changing market conditions, including movements in inflation and other economic factors.

The government securities market was therefore largely made up of domestic commercial banks, pension funds and the foreign investors who were eligible under the regional and diaspora restrictions.

The latest foreign exchange regulations remove the geographic restriction on non-resident participation.