How Tanzania hopes to attract foreign investors with new bond policy

Bank of Tanzania headquarters in Dar es Salaam.

The Bank of Tanzania’s (BoT) decision on New Year’s Eve to adopt market-determined coupon rates for government bonds is expected to boost market activity and attract greater foreign investor interest, analysts say.

The move, which replaces fixed rates with those influenced by supply and demand in the secondary market, is designed to enhance liquidity, improve price discovery, and ensure market efficiency.