The Complete Guide to Zambia Government Bonds

Government securities are one of the most reliable ways to grow your wealth in Zambia. Issued by the Government of the Republic of Zambia through the Bank of Zambia (BoZ), these instruments allow you to lend money to the government in exchange for guaranteed, fixed-interest returns.

What are Government Bonds?

While Treasury Bills are short-term (up to 1 year), Government Bonds are long-term debt instruments. When you buy a bond, you agree to lock in your money for a set period — the tenor. In return, the government pays you a fixed percentage every six months (the coupon) and returns your full principal at maturity.

How Par Pricing Works

Effective January 2024, the Bank of Zambia changed the issuance method. Bonds are now issued at par — the face value equals the price you pay. If you want K10,000 in bonds, you invest exactly K10,000. The coupon rate automatically matches the interest rate determined at auction.

Coupons & Withholding Tax

Unlike Treasury Bills, Bonds pay you semi-annually. Every six months you receive a Coupon Payment. Note: all interest earned is subject to a 15% Withholding Tax (WHT), deducted at source before the coupon reaches your account.