Dar es Salaam. The Bank of Tanzania (BoT) has said that it is waiting for approval on opening up the country’s capital account fully.
In 2014, Tanzania allowed foreign investors to own up to 100 per cent stake in the local listed companies from 60 per cent capped earlier.
The amendment also allowed investors from East African Community (EAC) to buy up to 40 per cent of the government securities – Treasury bills and Treasury bonds – which the foreign investors cannot participate at all. However, the liberalisation of the capital account will end the limitations and allow free movement of capital inflow and outflow.
The BoT director of economic research and policy, Dr Suleiman Misango, told The Citizen on the sidelines of a workshop on economic and financial reporting in Dodoma last week that a technical team had completed its work on liberalising the capital account for the rest of the world and was awaiting approval.
“We need approval from authorities before going to the parliamentary draftsman for endorsement,” he said
The process of liberalising the capital account started when the EAC protocol was signed in 2009 and came into effect in 2010.
The EAC countries agreed to open up their accounts for the rest of the world. While Uganda has liberalised its capital account, Tanzania had a road map which entailed doing it in phases. According to Dr Misango, Tanzania planned to open up to the rest for the world by December 2015 but due to a number of issues including the 2015 General Election it was delayed. He also spoke of Tanzania’s good macroeconomic variables and high expectations to get more inflows.