Commercial News from Africa

Tanzania expected to relax its rules on capital controls

The Tanzanian government plans to increase participation of foreign investors in the listed equities and allow them to buy government bonds. Presently restrictions bar non-residents from buying the nation's bonds and block companies that are more than 60 per cent owned by foreigners from trading on Dar es Salaam Stock Exchange (DSE).            The DSE chief expects the liberalisation of the stock market by increasing the participation of foreign investors would lead to a more vibrant market. The relaxation of capital controls coincides with the government engaging Fitch Ratings and Moody's Investors Service to rate the country's long-term risk ahead of its debut Eurobond offering. Tanzania plans to use proceeds from international bond sales to build roads, boost power generation and refurbish the nation's railways as it strives to reach middle-income status by 2025.