BoT raises non-competitive bid threshold to boost participation

Dar es Salaam. The Bank of Tanzania (BoT) has revised the maximum amount permitted under the non-competitive window in government securities auctions, increasing the threshold from Sh50 million to Sh500 million per auction.

In a public notice, the central bank said the change is aimed at widening investor participation and im-proving pricing efficiency in the auctions of government securities.

“The Bank of Tanzania wishes to inform the public and investors that the maximum amount for the non-competitive window has been revised,” the statement reads in part.

The non-competitive bidding window allows investors—particularly smaller or less experienced partic-ipants—to submit bids without competing on price, as these bids are allotted at the weighted average price (WAP) determined by the competitive segment of the same auction.

BoT clarified that while the limit has changed, all other procedures remain the same. Investors must continue to submit their bids through Central Depository Participants (CDPs), clearly stating the auction date, auction number, tenure, and the intended investment amount.

“Allotment for non-competitive bids will continue to be made at the weighted average price obtained from competitive bids in the respective auction,” the bank added.

The revision is expected to make the window more attractive to a broader range of investors, includ-ing institutional and high-net-worth individuals who previously found the Sh50 million cap restrictive.

The non-competitive bidding option is particularly popular with investors who prioritise certainty of allotment over price speculation, and the increase in the cap is likely to raise participation levels across upcoming auctions.