With the BNA’s benchmark rate (taxa basica) holding at 17.5% and inflation on a decelerating trajectory, yields on Angolan Treasury Bills (Bilhetes do Tesouro, BT) have drifted into the 14-17.5% range across the curve – still offering substantial nominal returns, but materially below the 20%+ levels that prevailed as recently as late 2023. For money-market participants and institutions managing short-term kwanza liquidity, BTs remain the single most important instrument in the Angolan capital markets.
Instrument Design
BTs are zero-coupon discount securities. The investor purchases a bill at a price below par and receives the full face value (valor nominal) of Kz 1,000 at maturity. The difference between purchase price and redemption value constitutes the investor’s return. This structure eliminates reinvestment risk within the holding period and provides a clean, transparent yield calculation.
The Treasury issues BTs across five standard maturities:
| Maturity | Typical Auction Frequency | Indicative Yield (Early 2025) |
|---|---|---|
| 28 days | Weekly | ~14.0% |
| 63 days | Fortnightly | ~15.0% |
| 91 days | Weekly | ~18.5% |
| 182 days | Fortnightly | ~17.0% |
| 364 days | Monthly | ~17.5% |
The inverted shape at the short end – where 91-day yields exceed 182-day and 364-day yields – reflects seasonal liquidity dynamics and the BNA’s use of shorter tenors as active monetary-policy tools. When the central bank wishes to drain excess kwanza liquidity, it concentrates issuance at the 28- to 91-day window, temporarily pushing short-end rates above the policy rate.
Primary Market: How Auctions Work
The BNA conducts BT auctions on behalf of the Ministry of Finance (Ministerio das Financas). Licensed primary dealers – predominantly commercial banks – submit sealed bids specifying quantity and the discount rate they are willing to accept. The Treasury sets an indicative volume for each auction, though it retains discretion to accept more or fewer bids depending on market conditions and fiscal needs.
Auction results are published on the BNA’s website and through BODIVA channels within hours of the cut-off. Key data points include the weighted-average yield, the marginal (highest accepted) yield, the bid-to-cover ratio, and total allotted volume. Tracking these results over time provides a high-frequency read on domestic liquidity conditions and investor appetite for sovereign risk. Our Bond Auctions page aggregates this data in a searchable format.
Secondary Market
BTs trade on BODIVA’s secondary market, though turnover is modest relative to primary issuance. Most institutional holders – banks and pension funds – tend to hold BTs to maturity given the short tenors involved. When secondary trades do occur, they settle through the CEVAMA central securities depository on a T+2 basis.
The repo market, where BTs serve as collateral for overnight and term funding, is substantially more active than outright secondary trading. Repo rates on BT collateral effectively set the floor for interbank funding costs in Angola, making treasury bill pricing the anchor for the entire kwanza money market.
How to Invest
Retail investors can purchase BTs directly through the Portal do Investidor (investidor.minfin.gov.ao), the Ministry of Finance’s digital platform for individual bond purchases. Registration requires an Angolan tax identification number (Numero de Identificacao Fiscal, NIF) and a CEVAMA custody account. The minimum investment is Kz 1,000 – roughly USD 1.10 at current exchange rates – making BTs accessible to a broad base of savers.
Institutional and foreign investors access the primary market through BODIVA-licensed broker-dealers or directly through primary dealer banks. Foreign participants should note that capital-market investments benefit from the FX repatriation protections established under Aviso 15/19, which permits the conversion and transfer of investment proceeds without additional BNA approval.
Tax Treatment
Interest income on BTs is subject to the Capital Application Tax (Imposto de Aplicacao de Capitais, IAC) at a statutory rate of 15%. This is withheld at source by the paying agent. The same rate applies to both resident and non-resident investors, though Angola’s bilateral tax treaties with Portugal, Brazil, and several other jurisdictions may provide for reduced withholding in certain cases. Investors should consult the investment tax guide for treaty-specific details.
Strategic Considerations
For foreign investors evaluating Angolan fixed income, BTs present a particular calculus. Nominal yields of 14-17.5% are attractive in absolute terms, but the total return in hard currency depends critically on kwanza depreciation over the holding period. With the USD/AOA rate relatively stable near 912-919 through early 2026 and the parallel-market premium compressed to approximately 9%, the carry trade on short-dated BTs has delivered positive USD-equivalent returns over recent quarters – a meaningful shift from the 2019-2023 period when rapid depreciation eroded local-currency gains.
The declining yield trajectory also presents a duration question. If the BNA continues cutting rates through 2025-2026 in response to falling inflation, investors locked into 364-day BTs at current levels will capture above-market returns for the full tenor. Conversely, those rolling 28-day paper will see yields reset lower with each auction cycle. The choice between short and long BT maturities is, in effect, a bet on the pace of BNA monetary easing.