Treasury Bills are short-term government securities issued by the Government of Ethiopia through the National Bank of Ethiopia.
When you invest in a T-Bill, you pay a lower amount upfront and receive the full face value when it matures. The difference between what you pay and what you receive is your return. Governments commonly use T-Bills to raise short-term funding.
What is a Treasury Bill?
A Treasury Bill is a short-term government security, not a long-term investment bond. Unlike savings products that pay interest periodically, T-Bills work differently: you buy them at a discounted price and receive the full value at maturity.
How your return is generated
There are no interest payments along the way. Instead, you buy below face value and collect the full amount at maturity. The gap between the two is your return.
If a T-Bill has a face value of ETB 100,000, you pay less than that today and receive ETB 100,000 when it matures.
Why this matters in Ethiopia
As Ethiopia’s government securities market continues to develop, understanding Treasury Bills helps investors make more informed decisions. T-Bills are often the starting point for learning how Ethiopia’s money market works, and once you understand them, you can: