Transition to Market-Determined Bond Coupon Rates

TLDR

• 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.
• 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.
• 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.
• 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.
• Treasury bonds issued by BOT are in six maturities: 2, 5, 7, 10, 15, 20, and 25 years.