Tanzania · Bank of Tanzania
Tanzania Treasury Bonds
Treasury bonds are how the Government of Tanzania borrows for the long term — and, for bonds of five years or more, the interest reaches you completely tax-free. Here is what they pay, how to buy them, and the rules for foreign investors.
- Issuer
- Bank of Tanzania, for the government
- Where to buy
- A CDS account at a bank or broker
- Minimum
- TZS 1,000,000, in multiples of 100,000
- Tenors
- 2 to 25 years
- Coupon
- Fixed, paid every six months
- Tax
- 5-year+ bonds are WHT-exempt
01What are Tanzania treasury bonds?
A treasury bond is a loan you make to the Government of Tanzania. In return you receive a fixed coupon every six months and your capital back at maturity. They are issued by the Bank of Tanzania on the government's behalf, which makes them among the lowest-risk instruments available.
Tenors run from 2 up to 25 years. The tax break for five-year-plus bonds (see below) makes the longer end especially attractive to savers who can lock money away.
02Treasury bond rates in Tanzania
Since January 2025 coupon rates are set by the market at auction rather than fixed in advance, so they move with each issue. For current figures, read the latest auction results from the Bank of Tanzania or the Dar es Salaam Stock Exchange, rather than trust a number on any page (including this one).
03How to buy treasury bonds in Tanzania
- 1
Open a CDS account
Open a Central Depository System account through a commercial bank or a CMSA-licensed stockbroker. You'll need a national ID (NIDA) or passport, a TRA Tax Identification Number and two passport photos.
Foreign or diaspora investor? See below ↓ - 2
Watch the issuance calendar
Bank of Tanzania publishes a government securities issuance calendar and an advert for each auction, naming the tenor on offer. Since January 2025 coupon rates are market-aligned rather than fixed.
- 3
Place your bid
Bid through your bank or broker before the deadline — competitive (you name the yield) or non-competitive (you accept the weighted average). The minimum bid is TZS 1,000,000.
- 4
Pay for accepted bids
If your bid succeeds, settle by the date given. The bond is recorded in your CDS account.
- 5
Collect coupons, then principal
Interest is paid into your bank account every six months, and the face value is repaid at maturity.
04Returns & tax
Your return is the coupon, paid twice a year, plus the face value at maturity. Tanzania's withholding tax rewards holding for longer:
- 2-year bonds: a 15% withholding tax on the interest.
- Bonds of five years or more: exempt from withholding tax — the coupon reaches you in full.
Often unclear — here's the answer
For foreign & diaspora investors
- Open to EAC residents — not everyone. Unlike Kenya and Uganda, Tanzania's government securities are restricted: only Tanzanian residents and East African Community (EAC) residents may buy at auction. Tanzanians in the diaspora can take part.
- Foreign holdings are capped. EAC investors can hold at most 40% of any single security issued, and there's a minimum holding period (commonly cited as twelve months) before securities bought at the primary auction can be resold.
- You'll need a CDS account and a TRA TIN. Open a Central Depository System account at a commercial bank or licensed broker — with a national ID or passport, photos and a Tanzania Revenue Authority TIN.
- Longer bonds are tax-free. Treasury bills and 2-year bonds carry a 15% withholding tax, but bonds of five years and longer are exempt from withholding tax — a strong pull toward the long end.
- Repatriation works, but it's documented. Tanzania keeps active foreign-exchange controls. Coupons and proceeds can be remitted, but you'll need paperwork — tax clearance and supporting documents — so plan with your bank.
Rules and rates change — verify against the Bank of Tanzania, DSE, CMSA and TRA before you commit. This is information, not tax or investment advice.
05Common questions
What is the minimum amount to buy a treasury bond in Tanzania?
TZS 1,000,000, in multiples of TZS 100,000, when bidding through a primary dealer. (Treasury bills start lower, at TZS 500,000.)
How are treasury bonds taxed in Tanzania?
It depends on the tenor: 2-year bonds carry a 15% withholding tax on interest, but bonds with a maturity of five years or more are exempt from withholding tax — Tanzania uses this to encourage long-term lending.
Can foreigners buy Tanzanian treasury bonds?
Only partly. Unlike Kenya and Uganda, Tanzania restricts government securities to Tanzanian residents and East African Community (EAC) residents, with foreign holdings capped at 40% of each issue. Tanzanians in the diaspora can participate. See the foreign-investor section below.
What is the difference between a treasury bond and a treasury bill?
Treasury bills are short-term (35, 91, 182 or 364 days), sold at a discount with no coupon. Treasury bonds run 2 to 25 years and pay a fixed coupon every six months until maturity.
Hold more than one bond? See them as one number.
Tamias totals every treasury bond, bill and share you own across Tanzania and East Africa, computes your true return after tax, and nudges you before each coupon and maturity — so matured money never sits idle.
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