“Over the last three years, it’s been almost impossible to buy the blue chips on the Tanzanian market. The foreign ownership limits have been at 60 per cent for as long as we can remember, and basically the capital markets authority have mentioned that they would like this to be lifted,” Gerhard Le Roux, sales trader from Imara SP Reid, told CNBC Africa.

“The expectation was that it would happen on the first of August, [but] since mid-July we’ve seen quite an aggressive rally within that market with local investors.”

(READ MORETanzania bourse presses state for privatisations)

Le Roux added that the foreign ownership limits have not yet been lifted, which could be due to the extended Eid al-Fitr holiday last week  in Tanzania, where the market was closed for three days. Strong market movement is nevertheless expected this week.

“There’s been basically no foreign participation in the buying side on the stocks that have reached foreign ownership, and this will provide 40 per cent potential liquidity to the market, and also give the Tanzanian pension funds and the like an opportunity to realise a bit of profit on their investments, which is great,” Le Roux explained.

Tanzanian Breweries is one of a number of companies whose stocks have improved following the positive news coming out of the country, and Le Roux expects foreign investors to be slightly more willing to pay a premium for similar companies’ stocks when the restriction is lifted.

(WATCH VIDEO: Tanzania steps up to boost domestic & private foreign investments)

“Tanzania is an incredible story. We’ve seen seven per cent growth for the last five years, and that’s basically without any oil money going into that whatsoever,” said Le Roux.

“The expectation is that the growth in Tanzania can push on quite aggressively when the government starts tapping into those natural resources. It’s a very exciting story.”