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George Michael Uledi.
Kyela,Mbeya.
August 9,2022.
While my government United Republic of Tanzania is in pressure to raise cash via government bonds auctions,finance Minister, my Brother PhD Mwigulu Lameck Nchemba face several challenges on which format,who should be eligible bidders and the interest rate offers possiblities of .(i)protecting country’s National Interests(ii)while at the same time stimulating local investments networks to faster growth!
Minister Mwigulu Nchemba should be keen on tendering the best national interest bidding format at the same time ensuring best chances of netting the needed Tsh 130 Billion so as to increase government requidity to finance and finish on going mega- development projects across Tanzania which is a top Samia’s government agenda!
The “two-stages process” for selling government securities to me,is found to be the most favourable format which offers the cheapest rate while insuring against auction failure!This model have successfully worked in India for some times now!
BusinessUpdates
Tanzania to sell first Treasury bond to #EAC, #SADC citizens
Tanzania’s Treasury is seeking Tsh130 billion ($55.6 mil) from the sale of a 5-year fixed rate bond to its citizens & those from East & Southern African trade blocs
My second concern is over Territorial auction bidding extension which we have undertaken through the recent amendments which now allows foreign investors participation!In my opinion,Samia’s government would put efforts and embark on creating a strong local investors network and strategically team-up to make sure they became the consumers of the government bonds auctions in future!
As Tanzania’s Treasury currently is seeking at least Tsh. 130 Billion from the sale of a five years fixed rate bond to its citizens,and those of EAC and SADC trade blocks at the coupon rate of 8.6%,it could be healthier if this deal could be reserve for local indigenous investors.just an observation!
If the last five- years Treasury bond of May ,2022 offer, amounting Tsh 116.37 Billion was successfully, almost nearly to the current offer of Tsh. 130 Billion at coupon rate of 8.93%,why then BOT should this time rush to net foreign investors from the two blocks?
This soften move has come through a June government notes which removed restrictions on the sale of it’s securities to foreign investors which to me, I consider to be one of the BOT’s century decision blander, totally ignoring the economic-resource nationalism policy!
As the government spending is increasing now and then to meet the financial demands to finance and execute mega- development projects,once it happens to have a corrupt government, may one time be tempted to expose government bonds auctions to global citizens”black market so as to net large amount of cash!
“I stand to be educated and criticized!“
Writer is CCM Young Star, former Officer at Idara ya Habari-Maelezo, Former Officer Cadet at Tanzania Military Academy Monduli Arusha,former Assistant Lecturer at Saut & Tumaini Universities and CCM’s contender at Kyela Constituency 2020.
+255746726484.
