Dar es Salaam. Tanzania's central bank has launched the country's first sovereign yield curve, introducing a benchmark aimed at improving transparency in the government debt market and attracting more domestic and foreign investors.
The new platform, unveiled by Bank of Tanzania (BoT) Governor Emmanuel Tutuba, allows investors to monitor returns on Treasury bills and Treasury bonds traded in the secondary market, helping them compare investment opportunities and assess market pricing.
Dubbed sovereign yield curve, the graph shows the movement of interest rates (yields) in the government securities such as Treasury bills and Treasury bonds.
Mr Tutuba said the launch marks a major milestone in the development of Tanzania’s government securities market, which has expanded significantly over the past two decades.
“The platform will enable investors to view and monitor the movement of actual returns in the secondary government securities market, allowing them to make investment decisions based on accurate information,” he said.
He said the sovereign yield curve will also improve transparency by allowing domestic and foreign investors to compare returns from Tanzania’s Treasury bills and bonds with other investment opportunities locally and internationally.
“This comparison increases transparency, attracts foreign capital and helps to strengthen our market,” he said.
According to him, Tanznia’s government securities market has recorded remarkable growth over the past 25 years since Treasury bonds were introduced in 2002.
During the 30-year journey of the Dar es Salaam Stock Exchange (DSE), the value of outstanding government securities has increased from Sh499 billion to Sh32.291 trillion in 2026. The number of investors has also grown significantly from 897 in 2016 to 32,631 currently, although this remains low compared to Tanzania’s population of nearly 70 million, he added.
The governor said the yield curve will serve as a risk-free benchmark rate for financial institutions, including banks, pension funds, insurance companies and corporations, supporting activities such as lending, mortgage financing and corporate bond issuance.
He added that the index will strengthen monetary policy implementation by providing accurate market-based information on interest rates and government securities pricing.
The initiative was developed with support from the United States Treasury Department, which provided technical assistance and training to Tanzanian officials.
A financial expert, Ms Wanda Goldon said the launch of the index could accelerate the development of financial literacy by enabling people to access important knowledge on finance and investment, which could help improve individual economic wellbeing, community economies, and ultimately contribute to the national economy as a whole.
“This is a way of contributing to the fulfilment of the development vision and strengthening efforts to reduce poverty, as it will increase the participation of investors in capital markets and financial markets, particularly the government securities. It will highlight the available opportunities, allowing people to benefit from the financial education that is continuously provided,” she said.
The Chief Executive Officer of the Dar es Salaam Stock Exchange (DSE), Mr Peter Nalitolela, said the presence of the system would help investors, especially small-scale investors, reduce unnecessary costs or price disparities they may encounter when buying or selling securities.
“The system will serve as an important benchmark for pricing short-term loans issued in local currency, whether provided by the private sector or the government. It will also assist the Bank of Tanzania in monitoring economic trends and assessing the effectiveness of interest rate adjustments within the broader financial system,” he said.
The increased transparency is also expected to boost trading volumes and liquidity in the government securities market and other capital markets.
The Chairman of the Tanzania Stock Exchange Brokers Association (TSEBA), Mr Godfrey Malauri, said the launch of the sovereign yield curve is an important step towards strengthening the country’s financial market. He said the benchmark would help increase investor understanding and provide clearer market direction in government securities trading.
He added that the move should be accompanied by continued public education on financial markets and investment.
Mr Malauri said that although investor participation in the government securities market has been increasing year after year, there is still a need to enhance financial education, especially among small investors who do not yet fully understand the dynamics of trading in the market.
He said the development of capital markets would enhance competition, investment, and Tanzania’s ability to attract more capital from both domestic and international sources.
According to him, the launch of the sovereign yield curve is part of the journey towards strengthening financial markets and creating an environment that will enable business and investment to grow further in the country.
