Launch of Tanzania's Sovereign Yield Curve

TLDR

• With Dira 2050 placing private-sector investment at the centre of Tanzania’s development ambitions, the country will need substantially more long-term capital to finance businesses, infrastructure and economic expansion.
• TANZANIA: THE Bank of Tanzania’s launch last week of Tanzania’s Sovereign Yield Curve may not have attracted the same public attention as a major policy announcement or a large government investment.
• A yield curve may sound like a technical instrument designed for economists, bankers and investment professionals.
• With a sovereign yield curve, the company and potential investors have a reference point: the yield on a government security of comparable maturity.
• Investors should therefore move beyond asking, “What is the coupon?” and begin asking, “What yield am I actually receiving, and how does it compare with other investment opportunities?” The sovereign yield curve makes.