By Ukumbi Afrika Tanzania is weighing the possibility of issuing its first Eurobond as part of efforts to meet an estimated $1 billion in external borrowing requirements, Finance Minister Khamis Mussa Omar has said.
Speaking at a media briefing in London on Thursday, Omar described a Eurobond issuance as "an option on the table," stressing that the government would only proceed if global market conditions are favourable.
The proposed international bond would complement Tanzania's broader financing strategy, which also includes concessional loans and the launch of the country's first offshore Tanzanian shilling-denominated bond.
That landmark local currency bond is scheduled to debut on the London Stock Exchange on Friday in partnership with the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group. The initiative is expected to broaden Tanzania's investor base while reducing reliance on foreign currency borrowing over the long term.
A government adviser at the briefing said any Eurobond issuance would be capped at $500 million, indicating a measured approach to tapping international capital markets.
If successfully executed, the Eurobond would mark a significant milestone for Tanzania, providing additional funding for development priorities while testing investor confidence in one of East Africa's fastest-growing economies.
The move reflects a broader trend among African governments seeking diversified sources of financing as they balance infrastructure investment needs with rising global borrowing costs.
Source: Reuters
Reporter: Libby George
Writer: Karin Strohecker
Editing: Dhara Ranasinghe