What Are Treasury Bills and Government Bonds in Zambia?
Treasury bills and government bonds are some of the safest ways to invest in Zambia. They are debt instruments issued by the government through the Bank of Zambia to raise funds for national projects. Investors lend money to the government and earn interest in return.
Treasury bills, or T-Bills, are short-term investments that mature within one year — usually after 91, 182, or 364 days. They are sold at a discount, meaning you buy them for less than their face value. When the bill matures, you receive the full value, and the difference becomes your profit.
For example, if you buy a treasury bill worth K10,000 at K8,900, you earn K1,100 profit when it matures. These bills are ideal for investors looking for short-term, low-risk returns.
Government bonds, by contrast, are long-term investments. They can run for two, five, ten, or even fifteen years. Bonds pay interest — called a coupon — twice a year. When the bond matures, the government repays your initial investment in full.
How to Buy Treasury Bills and Bonds in Zambia
To buy treasury bills or bonds, you need a Zambian Kwacha bank account and must register with the Central Securities Depository (CSD) through your bank. Most commercial banks in Zambia act as agents for the Bank of Zambia.
When you buy, you can choose between two bidding methods:
- Competitive bid: You state the interest rate you want.
- Non-competitive bid: You accept the average rate set at auction.
Once your bid is accepted, you’ll pay for the investment, and your earnings begin based on the agreed rate and period.
Interest Rates for Treasury Bills in Zambia
Interest rates for treasury bills vary with each auction. As of 2025, yields typically range between 10% and 12% per annum depending on the maturity period.
Government bonds usually offer higher returns since they run for longer terms. Some ten-year bonds can earn up to 19% per annum, making them a good option for long-term investors who want stable, recurring income.
Minimum Investment Amount in Zambia
The minimum amount you can invest in treasury bills or bonds is K1,000. However, some specific bond issues may require a higher minimum — up to K5,000 in some cases.
This flexibility allows both small investors and larger institutions to take part in the government securities market.
Types of Government Bonds in Zambia
The main types of government securities available in Zambia include:
- Treasury Bills: Short-term, discounted instruments that mature within one year.
- Government Bonds: Long-term investments with fixed interest rates, paid semi-annually.
- Thematic Bonds: These include special-purpose instruments such as green bonds, which finance sustainable development projects.
Treasury bills are preferred for short-term goals, while bonds are better for long-term financial growth.
Why You Should Consider These Investments
Government securities are backed by the Zambian government, making them among the safest investments available. They help you earn predictable returns while supporting national development projects in infrastructure, education, and healthcare.
If you’re new to investing, treasury bills are a great place to start. Once you gain experience, you can move into bonds for higher, long-term returns.
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These guides, together with this one, are designed to help Zambians make informed choices for a better future.
Final Thoughts
Investing in treasury bills and government bonds in Zambia is one of the safest and most rewarding ways to grow your money in 2025. With modest entry requirements, attractive interest rates, and government backing, they remain a top choice for anyone seeking stable and reliable returns.
