The Bank of Tanzania (BoT) has increased the limit for non-competitive bids in government securities auctions from TZS 50 million to TZS 500 million.
The change is meant to encourage more people to invest and to improve how prices are set in the market.
In a statement, BoT said the move will make it easier for investors who lack technical knowledge or large resources to buy Treasury securities.
The investors can now take part in auctions without competing directly with big players.
The BoT manages the sale of government securities on behalf of the Tanzanian government.
The bank reminded investors that even with the new limit, the bidding and pricing procedures will stay the same.
Non-competitive bids are still processed through Central Depository Participants (CDPs), and the final price is based on the average price set in the competitive bidding round.
The new TZS 500 million cap will apply to every auction, whether it is for Treasury bills or bonds. It sets the highest amount an individual investor can request under the non-competitive option in a single auction.
This is one of several changes BoT has made in recent years to make the financial market more transparent and inclusive.
Other reforms include digitalizing the auction process and encouraging more participation from small investors.
Investors using the non-competitive window are advised to submit their bids through CDPs. They should clearly state the auction date, number, maturity period, and the amount they wish to invest.