Dar es Salaam. The Bank of Tanzania (BoT) has raised the ceiling for non-competitive bids in government securities auctions from Sh50 million to Sh500 million, in a move aimed at boosting investor participation and improving pricing efficiency.
According to a statement issued by the central bank, the adjustment is intended to broaden access to Treasury securities through the non-competitive bidding window, particularly for investors who may not have the expertise or resources to engage in the competitive segment of the auctions.
The BoT acts as the fiscal agent of the government of Tanzania in the issuance of government securities.
“Investors wishing to utilise the non-competitive window are reminded that the bidding procedure and allotment price remain the same,” the bank notes in a statement.
Under the current framework, non-competitive bids are submitted through Central Depository Participants (CDPs) and are allocated at the weighted average price (WAP) derived from the competitive segment of the same auction.
The change applies across all government securities auctions, including Treasury bills and bonds, with the Sh500 million limit now serving as the maximum amount that any single investor can apply for under the non-competitive category per auction.
The BoT has in recent years implemented various reforms to enhance transparency and deepen the domestic financial markets, including the digitisation of the auction process and widening participation among retail investors.
Investors are urged to continue submitting their non-competitive bids via CDPs, clearly indicating the auction date, number, tenure and the amount they intend to invest.
