Tanzania is considering issuing a Eurobond worth up to $500 million as part of a broader plan to meet about $1 billion in external borrowing needs, signaling a push to diversify funding sources while capitalizing on improving global market conditions.

Finance Minister Khamis Mussa Omar said a Eurobond remains “an option on the table” if international market conditions become favorable. He made the remarks during a media briefing in London, where government officials outlined Tanzania’s evolving financing strategy.

A government adviser, speaking separately, said the proposed Eurobond would have a maximum size of $500 million, making it Tanzania’s first major entry into the international sovereign bond market if approved.

Offshore shilling bond to debut in London

The Eurobond proposal comes as Tanzania prepares to launch its inaugural Tanzanian shilling-denominated offshore bond on the London Stock Exchange in partnership with the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group.

The local currency bond is designed to broaden Tanzania’s investor base while reducing exposure to foreign exchange risks associated with hard-currency borrowing.

The dual funding approach reflects the government’s efforts to strengthen access to international capital markets while maintaining a balanced debt portfolio through concessional financing and domestic currency instruments.

Fast-growing economy supports investor appeal

Tanzania’s economic outlook continues to attract investor attention. The country has a nominal GDP exceeding $90 billion, with GDP per capita of about $1,400, making it one of the fastest-growing economies in the East African Community.

The economy is supported by a diversified mix of services (43%), industry (31%), and agriculture (26%), with mining, tourism, agriculture, infrastructure, and manufacturing driving long-term growth.

As African governments increasingly turn to international debt markets to finance infrastructure and development projects, Tanzania’s planned Eurobond could become a key test of investor appetite for East African sovereign debt amid easing global financing conditions.