Investment Vehicles · Zambia

GRZ Bonds in Zambia

A practical guide to Government of the Republic of Zambia bonds: how coupons work, how much you need to start, the BoZ CSD and bank accounts required, auction dates, risks, taxes and how bonds may fit into your portfolio.

What is a GRZ bond?

A GRZ bond is a debt investment issued by the Government of the Republic of Zambia through the Bank of Zambia. When you buy a bond, you lend money to Government for a specified period. In return, Government pays coupon interest—normally every six months—and repays the bond’s face value at maturity, subject to the terms in the auction prospectus.

Face value

The amount used to calculate coupon payments and normally repaid at maturity.

Coupon rate

The stated annual interest rate applied to face value. Coupons are generally paid in two instalments each year.

Yield

Your effective return based on the price paid, coupon cash flows and time to maturity. Yield and coupon rate are not always the same.

How GRZ bonds work

New bonds may be issued at par, meaning cost equals face value. Re-opened bonds can be allotted at par, a discount or a premium depending on the auction’s cut-off yield and the bond’s coupon. Always read the current prospectus because available tenors, coupons, settlement dates and special terms change between auctions.

Term Meaning
Primary market You bid in a Bank of Zambia auction through the Investor Portal or a commercial bank.
Secondary market You buy or sell an existing bond through a commercial bank or registered LuSE stockbroker.
Non-competitive bid You state the face value you want but accept the rate or price determined by the competitive auction.
Competitive bid You specify a yield and compete with other investors; the current minimum is significantly higher.

How much do you need to start?

Under current Bank of Zambia auction conditions, a non-competitive bid can start from K1,000 face value and can be submitted up to K499,999. Competitive bids currently start from K500,000 face value. Check every auction invitation because these limits and terms may change.

Budget for more than the headline amount when necessary. A re-opened bond allotted at a premium can cost more than its face value. Your commercial bank may also require funds before settlement and may charge for handling the transaction.

For confirmation, see the Bank of Zambia’s June 2026 bond auction prospectus, which states the current K1,000 non-competitive minimum and K500,000 competitive minimum.

Accounts needed to invest in GRZ bonds

Local Kwacha bank account

Bank of Zambia requires investors to have a local commercial bank account denominated in Kwacha. It is used for settlement, coupons and maturity proceeds.

Bank of Zambia CSD account

The BoZ Central Securities Depository records the Government securities you own. This is different from the LCSA CSD used for LuSE shares.

BoZ Investor Portal account

The online portal enables eligible investors to register, submit bids and monitor their Government-securities portfolio.

Where do you open the accounts?

Open your CSD and online access through the official Bank of Zambia Government Securities Investor Portal. You can submit bids directly through the portal or ask a local commercial bank to submit on your behalf. Expect identity, bank-account and know-your-customer information during registration.

Step-by-step: buying a GRZ bond

Define the goal. Decide the income, maturity date and liquidity you need before selecting a tenor.
Open the required accounts. Arrange a local Kwacha bank account, BoZ CSD registration and Investor Portal access.
Read the issuance calendar and auction prospectus. Confirm the auction date, tenors, coupons, whether each bond is new or re-opened, settlement and bid deadline.
Choose the bid type. Most smaller individual investors use a non-competitive bid and accept the auction-determined terms.
Submit the bid and fund settlement. Submit through the portal or your commercial bank and ensure cleared funds are available.
Monitor coupons and maturity. Keep the allotment advice and reconcile every payment against your CSD and bank records.

GRZ bond calendar, invitations and results

The Bank of Zambia publishes auction dates, invitations and results on its Government Bonds page. Auction frequency changed in 2026, so avoid relying on an old monthly timetable.

View the Official GRZ Bond Calendar and Results

On the BoZ page, use GRZ Securities Issuance Calendar for planned dates, View Bond Invitations for each prospectus and View Bond Results for auction outcomes.

The role of bonds in a portfolio

GRZ bonds can provide scheduled coupon income and help match long-term liabilities, but a long maturity also exposes you to inflation, interest-rate and liquidity risk. A bond is not automatically suitable simply because the coupon looks high.

Income

Semi-annual coupons can support planned cash-flow needs, subject to tax, fees and payment terms.

Capital preservation at maturity

Holding to maturity may reduce the effect of interim market-price changes, but inflation can erode real purchasing power.

Portfolio diversification

Bonds may balance equity exposure, although Zambia-specific sovereign and interest-rate risks remain.

Key risks to understand

Risk Why it matters
Interest-rate risk When market yields rise, the market value of an existing fixed-rate bond normally falls.
Inflation risk Coupon income and principal may buy less in future if inflation exceeds your return.
Liquidity risk You cannot redeem a GRZ bond early at BoZ; before maturity you need a willing secondary-market buyer, and the price may be lower than expected.
Reinvestment risk Future coupons may have to be reinvested at lower rates.
Concentration risk Holding too much in one tenor or one asset class can leave your portfolio exposed to a single outcome.

Tax and handling charges

Current 2026 bond auction terms state that coupon interest is subject to 20% withholding tax and a 1% handling fee. These charges reduce the coupon received. Tax rules and fees can change, so check the current prospectus and obtain tax advice relevant to your circumstances.

Compare investments using net income after tax and fees, not the coupon rate alone. Also distinguish the bond’s coupon rate from its yield and from your real return after inflation.

Frequently asked questions

What is the minimum amount for a GRZ bond?

Current non-competitive auction bids start from K1,000 face value. Competitive bids currently start from K500,000. Verify the latest prospectus before bidding.

Do GRZ bonds pay interest monthly?

No. Coupon interest is generally paid every six months on the dates specified for the bond.

Can I sell a bond before maturity?

Yes, through the secondary market if a buyer is available. Bank of Zambia does not redeem bonds early, and the market price can be above or below face value.

What happens when the bond matures?

The face value is paid to the bank account registered on your BoZ CSD record, subject to the bond terms and correct account information.

Is the highest coupon always the best bond?

No. Consider price, yield, maturity, inflation, liquidity, tax, fees and how the cash flows fit your goal. A high coupon can come with a long maturity and significant interest-rate risk.

What is the difference between a GRZ bond and a Treasury bill?

A Treasury bill is a short-term Government security normally purchased at a discount and does not pay semi-annual coupons. A GRZ bond runs for a longer period and pays coupons according to its terms.

Choose the right bond—not just the highest coupon

Insight Partners Africa helps investors understand auction documents, calculate gross and net coupon income, compare tenors and connect bond choices to a goal-based portfolio.

Explore Investment AdvisoryChoose a Beginner ClassView Investment Training