The Bank of Tanzania (BoT), acting on behalf of the Government of the United Republic of Tanzania, has highlighted long-term government bonds as a secure investment avenue for both institutions and individual investors seeking steady returns and long-term financial growth.
Long-term government bonds, known as Hati Fungani, are securities that mature after more than one year. They are first issued through competitive auctions in the primary market.
Once the auctions are completed, investors may continue buying and selling these instruments in the secondary market.
To access the bonds, investors are required to place their bids through registered commercial banks or licensed brokerage firms at the Dar es Salaam Stock Exchange (DSE).
These intermediaries are supervised by the Capital Markets and Securities Authority (CMSA) to ensure compliance and investor protection.
Participation in the auctions begins at a minimum investment of TZS 1 million. Prior to trading, every investor must open a Central Depository System (CDS) account, which is used to store all investment records. Unlike a regular savings account, the CDS account is dedicated solely to recording securities transactions.
Opening the CDS account is free of charge. Investors are only required to provide a National Identification Number (NIDA), a Taxpayer Identification Number (TIN), and two passport-size photographs.
Holders of government bonds receive interest payments twice a year. The Bank of Tanzania processes these payments directly into investors’ bank accounts, ensuring reliability and transparency.
Financial experts note that government bonds continue to attract growing interest due to their low risk and predictable returns.
As the government seeks sustainable ways to finance development projects, BoT encourages more Tanzanians to consider long-term bonds as part of their investment portfolios.