1. What is a treasury bill?
A treasury bill (T-bill) is a short-term debt security issued by the Ethiopian government through the National Bank of Ethiopia (NBE). When you buy a T-bill, you are lending money to the government for a fixed period. At maturity, you receive the full face value, which is slightly more than what you paid.
Unlike bonds, T-bills do not pay periodic interest (coupons). Instead, they are sold at a discount. You pay less than ETB 1,000 today and receive ETB 1,000 at maturity. The difference is your return.
Example
You buy a 91-day T-bill with a face value of ETB 10,000 for ETB 9,790. At day 91 you receive ETB 10,000 — a gain of ETB 210. That is your return, with no market risk.
2. T-bill maturities in Ethiopia
The Ethiopian government currently issues T-bills at four standard maturities:
28 days
~1 month
7.50%
Indicative yield
91 days
~3 months
8.50%
Indicative yield
182 days
~6 months
9.00%
Indicative yield
364 days
~1 year
9.75%
Indicative yield
* Rates are indicative and change with each auction. Kashup displays live auction rates in the app.
3. How the discount mechanism works
The formula to calculate how much you pay (the issue price) for a T-bill is:
Issue price formula
Issue Price = Face Value ÷ (1 + Yield × Days/365)
The yield is set at auction. Kashup shows you the post-auction yield before you confirm your purchase, so there are no surprises.
4. Yield calculator
Adjust the inputs below to see your estimated return:
Interest earned
ETB 1,059.59
Total at maturity
ETB 51,059.59
Holding period
91 days
Indicative only. Actual returns depend on the auction yield at time of purchase. No fees shown.
5. Step-by-step: buying T-bills through Kashup
Open the Kashup app
Download from the App Store or Google Play, or use the web platform at kashup.et.
Complete identity verification
Your Wardya digital ID is verified in under 5 minutes. Required by ECMA for all securities purchases.
Fund your wallet
Transfer ETB via your bank, Telebirr, or mobile money. Funds appear in seconds.
Navigate to Fixed Income
Open Markets → Fixed Income → Treasury Bills. You will see live auctions and secondary market offers.
Select maturity and amount
Choose 91D, 182D, or 364D. Enter how much you want to invest. The calculator shows your return instantly.
Confirm and receive
Tap Confirm. Your T-bill is recorded in the CSD under your name. At maturity, principal + interest credits your wallet automatically.
6. T-bills vs savings account vs equities
| T-Bills | Savings Acc. | Equities | |
|---|---|---|---|
| Return (typical) | 8.5–9.75% | 5–7% | Variable |
| Risk | Very low | Low | Medium–High |
| Liquidity | Medium (secondary mkt) | High | High (market hours) |
| Minimum | ETB 1,000 | ETB 100 | ETB 100 (fractional) |
| Capital loss possible? | No | No | Yes |
| Inflation protection | Partial | Low | High (long term) |
7. Risks to know
T-bills are the safest instrument available. But no investment is completely risk-free:
Inflation risk
If inflation rises above your T-bill yield, your real purchasing power decreases even though your nominal return is positive.
Reinvestment risk
When your T-bill matures, you may need to reinvest at a lower rate if yields have fallen.
Liquidity risk (secondary market)
The secondary T-bill market in Ethiopia is still developing. Selling before maturity may be harder than in more liquid markets.
Opportunity cost
By locking funds in a T-bill, you may miss higher returns available from equities or other instruments — particularly in a bull market.
8. Frequently asked questions
Is there a minimum investment?
The minimum face value per T-bill is ETB 1,000. Through Kashup you can invest multiples of ETB 1,000 starting at that floor.
Can diaspora Ethiopians buy T-bills?
Yes — through the Kashup Diaspora module. You complete Wardya identity verification, fund via international transfer, and access T-bill auctions directly.
Are T-bill returns taxable?
Interest income from government securities may be subject to Ethiopian income tax. Kashup provides documentation to support your tax filing. Consult a tax professional for your specific situation.
What happens if I need cash before maturity?
Kashup will support secondary market transfers as the ESX fixed-income secondary market develops. Until then, T-bills should be considered a hold-to-maturity investment.
How do I know I actually own the T-bill?
Your holdings are registered in the Central Securities Depository (CSD) under your name, not Kashup's name. You can view your CSD statement at any time inside the app.
Ready to invest in T-bills?
Kashup routes your order directly to the NBE T-bill auction. Join the waitlist and be among the first to access Ethiopian fixed income from your phone.