(3 minutes read)
Tanzania received a B2 positive credit rating from Moody’s. This was mainly due to the ongoing business environmental improvements. Tanzania is the only East African country to get B2 Positive credit from Moody’s rating.
Tanzania received a B2 positive credit rating from Moody’s. This was mainly due to the ongoing business environmental improvements. Tanzania is the only East African country to get B2 Positive credit from Moody’s rating.
Tanzania’s B2 position is better rated than Kenya, Rwanda, and Uganda, which were rated B2 negative. The country was only behind five African countries, among the 23 countries whose reports were released by Moody’s last week.
B2 credit rating implies a credit rating given to a prospective borrower that’s not of investment grade and suggests a company or government is able to meet its financial commitments but may be left highly exposed to adverse economic conditions. The rating is applied to the bonds issued by an organisation.
The positive report showed the government’s reconciliatory tone and improvement of the investment climate have the potential to fuel an already fast-growing economy and substantially attract increased Foreign Direct Investments (FDIs).
Tanzanian economy is in an upbeat mood as a result of the ongoing reforms to improve the business environment and implementation of IMF’s programme, which focuses on improving institutional capacity and government revenue generation. The positive outlook is reflected in the capital markets as the banking sector’s capital gains make waves into investors’ pockets and a booming banking sector. The two banks, collectively, accounted for 96 per cent of the total equity turnover for quarter one, while registering 39.2 per cent and 17.9 per cent on capital gains since the beginning of the year.
Read Also:
https://trendsnafrica.com/tanzania-exports-coal-to-europe/
https://trendsnafrica.com/tanzania-earnings-from-maize-exports-jumped-by-234-percent/
https://trendsnafrica.com/tanzania-resilient-natural-resource-management-for-tourism-and-growth-2/
Moody’s positive rating accelerated the equity turnover during the week to over 264 per cent to 2.48bn/-, attracting a foreign net inflow of 46.06m/-. The market was still dominated by local investors who accounted for an average of 68.8 per cent participation. This credit rating is a huge stride towards attracting foreign investors as the country continues to open up.
In the first three months of this year, the country’s FDI ballooned 50 per cent to 1.2 billion US dollars, this shows the efforts are paying off in making Tanzania the best investment destination in the continent. The Tanzania Investment Centre (TIC) Monthly Investment Bulletin for March shows that the new 93 projects are expected to generate more than 16,400 job opportunities for Tanzanians.
