25-Year Treasury Bond Tanzania: The 15 October 2026 Auction at 12.75%, Who Can Bid and How

The 25-year Treasury bond Tanzania investors can bid for this week is open to all investors, including foreign nationals, under the Bank of Tanzania's notice. This page sets out the terms, the tax line, the bidding route, the price risk and a worked example. Zatra does not recommend buying or selling this bond or any security. Speak to an investment adviser licensed by the Capital Markets and Securities Authority before you decide.

What changed: a new 25-year bond at 12.75%

The Bank of Tanzania, acting as fiscal agent for the United Republic, published a call for tender for a new 25-year bond on its auction tender page on 9 October 2026. The tender document for bond No. 722 names it the 12.75% 25-Year Fixed Rate Treasury Bond, Issue 19, ISIN TZ1996106179. It is auction number 1 of this bond, so it is a fresh line rather than a reopening.

Two things are new against the last 25-year issue. The coupon is lower, and the eligibility line is wider.

• Coupon. The bond auctioned in February, June and August 2026 was No. 695 at 13.25%. No. 722 pays 12.75%, half a percentage point less.
• Eligibility. The August 2026 tender for bond No. 695, auction 3, limited bidders to residents of the East African Community and SADC and Tanzanian citizens in the diaspora. The No. 722 tender states: "All investors, including foreign nationals are eligible to participate."

The wider line follows the Foreign Exchange (Amendment) Regulations, 2026, GN No. 206 of 2026, gazetted on 17 July 2026. The Bank's public notice of 6 August 2026 says the amendments "permit all non-resident investors to invest in Treasury bills and bonds issued by the Government".

The news report that drew attention to the auction, The Respondents of 10 October 2026, gives the same coupon, maturity, minimum and interest dates. We checked each one against the Bank's own tender document.

What is on offer in the 15 October auction?

The table restates the tender document. Where the tender is silent, the table says so.

The two allocations add up to about TZS 414.19 billion. The Bank may accept or reject any bid in whole or in part. A successful bidder who fails to pay on time is barred from later auctions for at least 30 days.

The October to December 2026 issuance calendar was not on the Bank's site when we checked. The last published one, the first-quarter 2026/27 calendar, covered July to September only. The tender document is therefore the operative record for this auction.

Who should read this?

• Individual savers. Tanzanians with money they will not need for many years, including those in the diaspora.
• Foreign investors. Non-residents of any nationality, newly admitted by GN No. 206 of 2026.
• Companies and institutions. Treasury teams holding surplus shillings, SACCOS, schools, NGOs and pension schemes, within their own investment rules.
• Zanzibar residents. The bond is a Union government obligation, open on the same terms in Zanzibar.
• Executors and trustees. Anyone managing money for minors or an estate who must weigh a 25-year lock against early sale risk.

If the money may be needed within a year or two, start with our guide on where savings are protected in Tanzania. The broader choice between bills, short bonds and long bonds is set out in our guide to buying Treasury bonds and bills in Tanzania.

Who can bid, including foreigners?

The tender document admits all investors, including foreign nationals. The legal basis is the Foreign Exchange Act, Cap. 271, and the Foreign Exchange (Amendment) Regulations, 2026. Before that amendment, the Foreign Exchange Regulations, 2022 (GN No. 294 of 2022) confined non-resident access to EAC and SADC residents and the diaspora, as TanzaniaInvest reported on 7 August 2026.

The Bank's notice makes non-resident access "subject to the provisions of the Foreign Exchange (Amendment) Regulations, 2026" and other laws and operational requirements. It does not state a minimum holding period or a cap. Neither the notice nor the tender sets out how coupons and redemption proceeds are converted and sent abroad. A foreign investor should get that in writing from the CDP before bidding.

How do you bid for the 25-year Treasury bond?

Through an intermediary. The tender says: "Bids will be submitted online through Central Depository Participants (CDPs)." A CDP is a bank or a broker or dealer licensed by the Capital Markets and Securities Authority. The CMSA publishes its list of licensees. The Bank's notice of 9 May 2025 confirms that bids reach it through CDPs and must state the auction date, auction number, tenor and amount.

1. Open a CSD account. The CDP opens a securities account in the Central Depository System in your name.
2. Fund the bid. Hold enough cleared shillings with the CDP or your bank to pay on 16 October.
3. Lodge the bid. Give the CDP auction No. 722, the amount, and a price if competitive. The CDP submits online.
4. Confirm it went in. Ask for confirmation before 11:00 a.m. on 15 October. An instruction is not a bid.
5. Check the result. The Bank publishes results on its website and at CDP offices after the auction.
6. Pay on settlement. Pay the allotted amount for value 16 October. The bond then sits in your CSD account.

We found no Bank of Tanzania mobile or direct retail bidding channel named in the No. 722 tender. Some banks offer bidding inside their own apps as CDPs. Ask your bank whether it is a CDP before you assume.

Competitive or non-competitive: which bid should you place?

The tender splits the offer into two pools. A competitive bid names a price per TZS 100. It is filled only if the price is at or above the cut-off the Bank accepts. A non-competitive bid names no price.

The Bank's 9 May 2025 notice says non-competitive bids are allotted at the weighted average price of the accepted competitive bids. The same notice raised the non-competitive cap per auction from TZS 50,000,000 to TZS 500,000,000.

Recent long-bond auctions have drawn far more bids than the amount offered. When that happens, the cut-off price rises and low competitive bids miss out. Non-competitive bidders accept whatever average emerges.

Is interest on the 25-year bond taxed?

Not by withholding. The tender states: "Interest income is exempt from withholding tax." The law behind that line is the Finance Act, 2021 (Act No. 3 of 2021). Section 26 added to paragraph 1(1) of the Second Schedule to the Income Tax Act, Cap. 332, an exemption for "interest derived by a person from government bonds of not less than three years" issued and listed on the Dar es Salaam Stock Exchange from 1 July 2021.

The rule does not cover every government instrument. The general rate on interest is 10% for residents and non-residents (register F0208, Cap. 332 First Schedule para 4(b)(ii)).

RSM Tanzania's Tax Guide 2025/26 lists the same exemption with effect from 1 July 2021. Bowmans' note of 12 July 2021 flagged that the wording could be read narrowly for bonds issued before that date. That debate does not touch No. 722, which is issued and listed in 2026. PwC's withholding tax summary, reviewed 9 September 2026, keeps interest at 10% in its general table.

A gain on selling the bond early is a separate question. Register line F0236 taxes gains on shares or securities in a resident entity at 10% for residents and 30% for non-residents. The Income Tax Act definition of an investment asset excludes DSE-listed securities held by residents, and non-residents holding under 25%. Whether that reaches a government bond is a point to confirm with TRA or a tax adviser before a large sale.

Our guide to buying Treasury bonds works through the 10% cost on bills and the 2-year bond in more detail.

How have recent 25-year auctions priced?

The Bank's Treasury bond results page lists eight 25-year auctions in 2025 and 2026. Coupons have stepped down each time a new bond opened.

The June figures come from the Daily News of 1 July 2026. That auction was six times oversubscribed, and the Bank accepted 13.85% of bids. Investors paid about 109 per 100 for a 13.25% coupon, a yield near 11.9%.

Read the pattern carefully. A coupon is fixed at issue; the yield is what the market pays. When recent yields sit below the coupon, the bond tends to sell above par. The Bank also launched a Tanzania Sovereign Yield Curve on 7 August 2026 as a pricing benchmark.

Worked example: TZS 10,000,000 of bond No. 722

Mr Salim wants TZS 10,000,000 face value of No. 722. The price he pays depends on the auction. The table shows three illustrative prices. Each is Zatra's arithmetic using half-yearly compounding over 50 coupons; it is not a forecast of the result.

The coupon is set on face value, not on the price paid. A buyer at 106.83 receives the same TZS 637,500 as a buyer at par, on a larger outlay. That is why his yield is lower. With Actual/365, the Bank's exact coupon for a 182-day period could differ by a small amount from TZS 637,500; the CDP's contract note governs.

Now the price effect. Suppose Mr Salim buys at par and sells after one year, with 24 years left.

• Yields unchanged at 12.75%: price about 100.00. He sells for TZS 10,000,000 and has received TZS 1,275,000 in coupons.
• Yields up one point to 13.75%: price about 93.03. He sells for about TZS 9,302,630, a capital loss of about TZS 697,370. After TZS 1,275,000 of coupons he is ahead by about TZS 577,630, before dealing charges.
• Yields down one point to 11.75%: price about 107.96. He sells for about TZS 10,796,130, a gain of about TZS 796,130 on top of the coupons.

Inflation also matters. The Bank's Monetary Policy Committee statement of 8 October 2026 put Mainland inflation at 4.3% in August 2026 and Zanzibar at 5.6%. A 12.75% coupon less 4.3% inflation leaves a real return of roughly 8.5% at par, if inflation stays there. It may not over 25 years.

Can you sell the bond before 2051?

Yes. The tender lists the bond on the Dar es Salaam Stock Exchange with trading from 19 October 2026, in multiples of TZS 100,000. A holder sells through a licensed dealing member of the exchange, which places the order and settles through the CSD. The DSE government bond page lists Treasury bonds in issue with their coupons and maturities.

Three practical points apply.

• The market sets the price. A sale can realise more or less than the cost, as the worked example shows.
• A buyer must exist. Long bonds trade, but not every line trades every day. A large holding may take time to sell at a fair price.
• Charges apply. Dealing members charge commission, and exchange and regulatory fees apply. These are not in the Zatra fee register; get the schedule from your dealer in writing.

For the mechanics of placing orders on the exchange, see our guide on how to buy shares on the DSE, which uses the same account and dealer route.

What are the risks of a 25-year bond?

A government bond is not the same as a deposit. Zatra does not rate it or recommend it. The main risks are these.

• Price risk. The longer the bond, the more its price moves when yields change. A one-point rise in yields cuts about seven points off the price of No. 722 at par.
• Inflation risk. The coupon is fixed in shillings until 2051. If inflation rises, its real value falls.
• Liquidity risk. Selling relies on a buyer on the DSE. In a stressed market, the price can be poor.
• Reinvestment risk. Coupons arrive every six months. If rates have fallen, reinvesting them earns less.
• Currency risk for foreigners. Returns are in shillings. A weaker shilling reduces the value in dollars or euros.
• Rule change risk. Tax or foreign exchange rules can change over 25 years. The exemption is a statute that Parliament can amend.

Interest rates set by the Bank feed into all of this. Our note on the Central Bank Rate for the fourth quarter of 2026 covers the 6.25% decision of 7 October 2026.

Zanzibar investors and the Mainland: what differs?

For this bond, almost nothing. No. 722 is issued by the United Republic through the Bank of Tanzania, which serves both Mainland Tanzania and Zanzibar. The tender sets one set of terms for all investors and names no separate Zanzibar window.

• Bidding. A Zanzibar resident bids through a CDP in the same way, online. Ask a bank in Zanzibar whether it is a CDP.
• Tax. Income tax is a Union matter administered by TRA, so the exemption in the Income Tax Act applies to a Zanzibar holder as it does on the Mainland.
• Inflation. Zanzibar inflation was 5.6% in August 2026 against 4.3% on the Mainland, so the real return is lower for spending in Zanzibar.
• Estates. On a holder's death, the bond passes under the law and court that govern the estate. Zanzibar probate is handled in Zanzibar courts, and the CSD will want the grant before it transfers the bond.

What to do now

1. Decide the horizon. Write down when you will need this money. If it is before 2051, plan for a possible sale at a loss.
2. Take licensed advice. Speak to a CMSA-licensed investment adviser about whether a 25-year bond suits you. Zatra does not recommend buying or selling.
3. Choose a CDP. Pick a bank or licensed dealer that is a CDP, and get its account and bidding charges in writing.
4. Open or update the CSD account. Provide ID, TIN and bank details now. Accounts opened late may miss 15 October.
5. Pick the bid type. Decide between a competitive price and a non-competitive bid at the weighted average.
6. Lodge and confirm. Submit before 11:00 a.m. on 15 October 2026 and get written confirmation.
7. Fund settlement. Have cleared shillings ready for value 16 October 2026.
8. Keep the records. File the allotment advice, contract note and each coupon statement for tax and estate purposes.

Key dates

How Zatra helps

Zatra's tax advisory and planning team explains how bond interest, early-sale gains and estate transfers are treated for individuals, companies and foreign holders. Our tax compliance desk records coupons and exemptions correctly in returns. For a company placing surplus cash, our investment advisory team can help set an investment policy and board approvals. We do not pick securities or tell you to buy or sell. Prices are on our pricing page.

The price of the bond and any dealer or exchange charges are paid to the CDP, the Bank of Tanzania or the DSE at their own rates. Any government charges are paid at the official rate and are listed in our government fees handbook. They are separate from Zatra's professional fee and are never marked up.

The Bank of Tanzania decides allotments, and TRA decides tax questions. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. A failed settlement, a tax objection or a disputed estate transfer goes to an advocate, and we brief one for you.

Sources and status

Accurate as at 11 October 2026. Bond terms are from the Bank of Tanzania tender for No. 722; tax figures are from the Zatra fee register at 26 September 2026 and the statutes listed below.

• 12.75% 25-Year Treasury Bond No. 722, call for tender: Bank of Tanzania, 9 Oct 2026. Accessed 11 Oct 2026.
• Auction call for tender listing: Bank of Tanzania, 2026. Accessed 11 Oct 2026.
• Treasury bond auction results: Bank of Tanzania, 2026. Accessed 11 Oct 2026.
• 13.25% 25-Year Treasury Bond No. 695, auction 3: Bank of Tanzania, 30 Jul 2026. Accessed 11 Oct 2026.
• 2-Year Treasury Bond No. 712: Bank of Tanzania, 24 Jul 2026. Accessed 11 Oct 2026.
• Amendment to the Foreign Exchange Regulations, 2026: Bank of Tanzania, 6 Aug 2026. Accessed 11 Oct 2026.
• New cap set for non-competitive bids: Bank of Tanzania, 9 May 2025. Accessed 11 Oct 2026.
• Monetary Policy Committee statement: Bank of Tanzania, 8 Oct 2026. Accessed 11 Oct 2026.
• Government securities issuance calendar, Q1 2026/27: Bank of Tanzania, 1 Jul 2026. Accessed 11 Oct 2026.
• Launch of the Tanzania Sovereign Yield Curve: Bank of Tanzania, 5 Aug 2026. Accessed 11 Oct 2026.
• The Finance Act, 2021 (Act No. 3 of 2021): Parliament, via TanzLII, 30 Jun 2021. Accessed 11 Oct 2026.
• List of licensees: Capital Markets and Securities Authority, 2026. Accessed 11 Oct 2026.
• Government bonds: Dar es Salaam Stock Exchange, 2026. Accessed 11 Oct 2026.
• BoT opens government bond investment to citizens: The Respondents, 10 Oct 2026. Accessed 11 Oct 2026.
• Investors pour into 25-year bond as yields slide: Daily News, 1 Jul 2026. Accessed 11 Oct 2026.
• Tanzania opens government bills and bonds to all foreign investors: TanzaniaInvest, 7 Aug 2026. Accessed 11 Oct 2026.
• Tanzania Tax Guide 2025/26: RSM Tanzania, 2025. Accessed 11 Oct 2026.
• Finance Act 2021 highlights: Bowmans, 12 Jul 2021. Accessed 11 Oct 2026.
• Withholding taxes: PwC, 9 Sep 2026. Accessed 11 Oct 2026.

Figures to confirm before you act

• Auction result: the cut-off price, weighted average yield and allotment for No. 722 are unknown until the Bank publishes them on 15 October 2026
• Exact coupon amount: about TZS 637,500 per TZS 10,000,000 each half-year; the Bank's Actual/365 calculation and the CDP contract note govern
• Non-competitive rules: weighted average pricing and the TZS 500,000,000 cap come from the 9 May 2025 notice; the No. 722 tender does not restate them
• Non-resident terms: operational requirements and repatriation under GN No. 206 of 2026; the regulation text was not read in full
• Gain on early sale: whether F0236 or the DSE-listed exclusion applies to government bonds; confirm with TRA
• Second Schedule numbering: the exemption was added as paragraph 1(1) by the Finance Act 2021; its number in Cap. 332 R.E. 2023 was not read
• Dealer and exchange charges: not in the register; get the CDP and dealing member schedule in writing
• Register lines: F0208, F0209 and F0236 at 26 September 2026

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.