Govt issues commercial papers worth ZWG5.6bn
LIVINGSTONE MARUFU
The Government has raised ZWG5.6bn through the issuance of Treasury Bills (TBs) and bonds via private placements, as it continues to rely on domestic financial markets to fund public expenditure amid constrained access to external credit, Business Times can report.
The latest Reserve Bank of Zimbabwe (RBZ) report shows that the issuance reflects the country’s increasing financial isolation, driven by longstanding external debt arrears that have limited its ability to tap international capital markets.
RBZ Governor Dr John Mushayavanhu said commercial paper remains a key instrument in government financing.
“The government raised ZWG5.6bn through the issuance of Treasury Bills and bonds via private placements. Efforts are underway to clear domestic arrears and to resume public auctions of Government securities in 2026, following the stabilisation of inflation,” he said.
The Treasury Bills were issued at varying interest rates depending on currency and tenor. Local currency instruments carried rates of 13.0% for 90-day bills, 14.0% for 180-day paper, and 14.5% for 270-day maturities.
US dollar-denominated TBs were issued at 12.5% for 90-day tenors and 6.0% for 365-day instruments.
According to the RBZ, the government raised ZWG779.44m and US$84.91m in the first quarter of 2025, followed by ZWG1.16bn and US$95.79m in the second quarter. A further US$20m is projected for the second half of the year.
While Treasury Bills are widely regarded globally as safe, liquid instruments backed by sovereign guarantees, their reputation in Zimbabwe remains strained due to past episodes of default, central bank overdrafts, and fiscal instability.
In previous years, extensive use of central bank financing contributed to hyperinflation and a collapse in confidence in government debt instruments. As a result, TBs have often been associated with unsustainable borrowing and persistent fiscal deficits.
Investor confidence remains subdued, with authorities working to rebuild trust in domestic debt markets and improve fiscal discipline.
