BANK of Tanzania has said participation from East African region in buying government securities is still very low, despite lifting the capital account restriction some three years ago.
Mr Mohammed Kailwa, an official with the
BoT said in Zanzibar yesterday in a media workshop that there were only
five cases recorded of the regional investors taking part in the
government securities since when restrictions were lifted few years ago.
“We are optimistic for more investors to
participate in the risk free government securities including treasury
bills and bonds because Tanzania offers competitive interest rates
compared to the rest of the EA members,” he said.
In 2014, foreign restrictions were
lifted for the locally listed equities and allow investors from the EAC
member states to buy up to 40 per cent of the issued riskfree government
securities. The members are Kenya, Uganda, Rwanda and Burundi.
Individual Tanzanians are encouraged to
take part in the risk free government securities that assure them
handsome return compared to other investment avenues.
He said an investment in government
securities gives wide range of opportunities to the investor like using
the paper as collateral in accessing loans from commercial banks.
He said most people fail to access loans
for lacking collateral but investment in treasury bills and bonds could
give them opportunity to get loans from lenders.
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