In today’s economic climate, Zambian entrepreneurs are learning an important truth: smart money doesn’t just hustle—it also earns in silence. One of the most overlooked but powerful financial tools available to business owners in Zambia is investing in Government Securities.
Whether you’re running a startup, a real estate firm, or a growing enterprise, Government of Zambia Securities offer a reliable way to grow your capital, preserve your savings, and even unlock new funding opportunities—all with lower risk than many private investments.
What Are Government Securities?
Government securities are debt instruments issued by the Zambian Government through the Bank of Zambia (BoZ). When you invest, you are essentially lending money to the government, and in return, you receive interest income and your capital back at the end of the term.
There are two main types:
Treasury Bills – Short-term (up to 1 year), sold at a discount, and redeemed at face value.
Government Bonds – Long-term (2 to 15 years), with semi-annual interest (coupon) payments and repayment of the face value at maturity.
Why Entrepreneurs Should Pay Attention
As an entrepreneur, you deal with risk daily—from fluctuating sales to rising operating costs. Investing in government securities offers a counterbalance to that risk. Here’s why:
Top Benefits for Entrepreneurs
- Safe and Reliable Investment
Government securities are guaranteed by the full faith and credit of the Zambian Government, making them one of the safest places to park your money.
- Liquidity & Flexibility
Need cash? You can sell your securities on the secondary market before they mature. You can also use them as collateral for bank loans—a strategy savvy business owners use to access funding while their capital remains invested.
- Consistent Passive Income
With government bonds, you earn semi-annual interest payments, which can be used to pay salaries, reinvest in your business, or build savings for expansion.
- Accessible Starting Point
You can start with as little as K1,000, and there’s no restriction on who can invest—whether you’re an individual or a business entity. For amounts below K500,000, you can enter through the non-competitive window and still earn attractive returns.
- Tax Efficient
Only a 15% withholding tax and 1% handling fee applies to interest income. And for Treasury Bills, the discount income is tax-free.
Real-World Example
Imagine instead of spending K500,000 outright to build property, you first invest it in a 364-day Treasury Bill with a return rate of 20%. You’d pay about K416,857, and after one year, you receive K500,000—a gain of over K83,000 without lifting a finger.
Better yet, you can use the security as collateral at a bank like ZANACO to access capital for your project—while your investment continues earning.
How to Get Started
- Open a Kwacha account at any Zambian commercial bank.
- Register on the Bank of Zambia’s Central Securities Depository (CSD).
- Submit a bid either:
Directly to the Bank of Zambia (with a Letter of Guarantee), or
Through your commercial bank.
- Track auctions through newspapers, BoZ website (www.boz.zm), or SMS alerts.
Remember Always that Wealth Moves in Silence!
Every smart entrepreneur knows that cash alone isn’t king—cash flow is. Government securities allow you to grow your money quietly while keeping your business moving. Whether you’re funding expansion, building reserves, or just looking for a smart place to put your profits, it’s time to think bigger than a savings bank account.
Let your money work just as hard as you do.
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For more details, contact the Bank of Zambia Financial Markets Department or visit www.boz.zm
+260 211 399 399
Email: government.securities@boz.zm
