Appetite for Tanzania’s sovereign bonds is expected to continue as banks in the East African nation prioritize lending to the government to secure some returns despite the Covid-19 pandemic, Bloomberg News reported. The nation’s last three bond sales were oversubscribed. The latest raised 182.3 billion shillings ($79 million) in 25-year bonds at 15.95%, attracting tenders of more than three times the amount offered, according to a Bank of Tanzania report on Wednesday. If the economy doesn’t recover from the pandemic quickly, banks will continue being reluctant to increase lending to businesses and households, said Ivan Tarimo, a partner at financial advisory firm Bankable Tanzania. They will continue to invest in “risk-free treasury bonds,” he said. The International Monetary Fund forecast Tanzania’s economy to expand 4% this year, compared with 7% before the pandemic in 2018 and in 2019. Growth in the second quarter slowed to 4.3% from 5% in the previous period, according to the nation’s statistics office. Read more.