The Bank of Tanzania, on behalf of the Government of the United Republic of Tanzania, sells long-term Government Securities (Bonds) and short-term Government Securities (Treasury Bills) as a means for the Government to borrow funds from the domestic market. Buyers may include institutions, groups, banks, and individual investors.
Long-term Government Securities are those with a maturity period exceeding one year. These securities are sold in the primary market through competitive and non-competitive bidding conducted by the Bank of Tanzania. After the primary auction, the securities are later traded in the secondary market at the Dar es Salaam Stock Exchange.
Investors purchase Government Bonds through authorized agents, which include all licensed commercial banks regulated by the Bank of Tanzania, and licensed brokers or dealers of the Dar es Salaam Stock Exchange, supervised by the Capital Markets and Securities Authority.
The minimum investment amount for long-term Government Securities (Bonds) is Tanzania Shillings 1,000,000.
To invest in Government Securities, one must open a special investment account known as the Central Depository System (CDS) Account. This account is different from a normal savings account because it is specifically used to keep records and track all investment information.
Opening a CDS account is free of charge, and investors are required to submit identification documents such as a National ID (NIDA), Taxpayer Identification Number (TIN), and two passport-sized photographs.
Investors in long-term Government Securities receive interest payments (coupons) twice a year, and the Bank of Tanzania pays these coupons directly to the investor’s bank account as provided during registration.
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