The Bank of Tanzania (BoT), acting on behalf of the Government of the United Republic of Tanzania, has announced the date for the first auction of a 25-year Government bond, offering investors an opportunity to participate in long-term, state-backed financing.
Government securities comprising long-term bonds and short-term Treasury bills remain a key instrument through which the government raises funds from the domestic market to finance development projects.
Eligible investors include financial institutions, commercial banks, organised groups and individual Tanzanians.
Long-term Government bonds are securities with a maturity period exceeding one year. They are issued in the primary market through competitive and non-competitive auctions conducted by the Bank of Tanzania.
Once issued, the bonds are tradable on the secondary market through the Dar es Salaam Stock Exchange (DSE), enhancing liquidity for investors.
Interested investors are required to submit their bids through authorised agents, including all licensed commercial banks supervised by the Bank of Tanzania and licensed stockbrokers regulated by the Capital Markets and Securities Authority (CMSA).
The minimum investment threshold for long-term Government bonds is set at Sh1 million, making the instrument accessible to both institutional and retail investors seeking stable and predictable returns.
Participation in the auction requires investors to open a Central Depository System (CDS) account, a specialised investment account used to record and safeguard ownership of Government securities. The CDS account is distinct from ordinary bank accounts and is opened free of charge.
To open a CDS account, applicants must present valid identification documents, including a National Identification Card (NIDA), a Taxpayer Identification Number (TIN) and two recent passport-size photographs.
Holders of long-term Government bonds earn interest payments, known as coupons, twice a year. The Bank of Tanzania credits these payments directly to investors’ nominated bank accounts, ensuring transparency and reliability.
The announcement highlights the government’s continued reliance on domestic capital markets to mobilise long-term financing, while providing investors with a secure investment option backed by the state.