Africa-Press – Tanzania. THE public has been encouraged to visit the Bank of Tanzania (BoT) pavilion at the Dar es Salaam International Trade Fair (DITF) so that they can learn more about the benefits of securities and investments opportunities.
The call was made yesterday by BoT’ Senior Financial Systems Analyst for the Directorate of Financial Markets, Ephraim Madembwe, while highlighting on the responsibilities of the directorate and the benefits of a closed bond to ordinary citizen.
Madembwe said the directorate’s responsibilities include among others, to implement the country’s monetary policy developed by the economic directorate and provide a guide price to compare the exchange rate of the Tanzanian shilling with foreign currency.
“We have a responsibility to ensure that our financial institutions in other banks outside and inside the country are safe and growing. We have also been handed a bond if the government needs liquidity to pay for day-to-day operations and must have the money,”said Madembwe.
Elaborating further, he said that the government is implementing various projects such as Standard Gauge Railway (SGR), Julius Nyerere Hydropower Project, construction of schools and hospitals through revenue collected from taxes but when it need s more funds it has to sell its bonds in order to get the money.
Madembwe said bonds are other sources of revenue which can be used by the government to finance various activities…. “when the government sells its bond the person or company invests its money to the government to enable it to implement the project and pay the beneficiary according to the agreement.
“There are long-term and short-term domestic documents depending on who has invested in the existing one. But this long term is even better because every six months one gets a dividend from the government,” he said.
Yesterday there was someone who invested 30m/- which is a long term of about 20 years, this investor will earn 4.5m/- every year until the 20 years are expired ,”he explained. We have Treasury bonds and treasury bills in which a person can choose which one is suitable for him.
He encouraged group members, individuals and companies to visit their pavilion at the exhibition to learn more about bond and investment where the minimum is 500,000 and onwards that a person wins a bid based on his or her offer to the government.
