Treasury bonds continue to dominate Tanzania’s domestic debt portfolio, highlighting the government’s growing reliance on long-term borrowing to finance development projects and manage public finances.
According to the Bank of Tanzania’s Monthly Economic Review for February 2026, the country’s domestic debt stock rose to TZS 38.6 trillion by the end of January 2026, marking a 1.9 percent increase from the previous month.
A large share of this debt is concentrated in government securities, particularly Treasury bonds, which account for the bulk of domestic borrowing instruments.
The report indicates that government securities make up about 85 percent of the domestic debt stock, with Treasury bonds alone representing more than 80 percent of the total portfolio. Treasury bills account for a much smaller share, while other forms of debt, such as government stocks and non-securitized liabilities, remain minimal.
This reliance on long-term borrowing helps spread repayment obligations over time and reduces refinancing risks associated with short-term debt instruments.
According to the report, the domestic debt market has been supported by strong participation from financial institutions. Commercial banks and pension funds remain the largest holders of government domestic debt, jointly accounting for more than half of the total stock. Other investors include the Bank of Tanzania, insurance companies, public institutions, private companies, and individuals.
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During January 2026, the government raised TZS 263.7 billion through the issuance of government securities to finance its budgetary operations. Of this amount, TZS 113 billion was mobilized from Treasury bonds, while TZS 150.7 billion was raised through Treasury bills.
At the same time, the government serviced TZS 669.8 billion in domestic debt, including TZS 303.9 billion in principal repayments and TZS 365.9 billion in interest payments during the month.
