Capital markets investment value up by 23pc

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DAR ES SALAAM: CAPITAL markets investment value has increased by 23.2 per cent as of last month compared to the amount recorded in April last year.

New records reveal that the investment value has reached 43.4tri/- as of April this year compared to 35.2tri/- recorded during the corresponding period previous year, according to Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama.

Mr Mkama attributed the growth to the implementation of government’s plans and strategies which has brought positive results in the development of the financial sector, especially the capital markets.

Mr Mkama further noted that sales of shares and bonds have also gone up by 64.5 per cent, hence reaching 4.2tri/- by April this year from 2.5tri/- during the same period last year.

Also Read: Capital markets investment value up 31pc

On the other hand, the value of collective investment schemes has also increased by 44.7 per cent, reaching 2.1tri/- in the past one year from 1.4tri/- recorded in April, 2023. Mr Mkama stated this yesterday in Dar es Salaam at an event to officiate at the launching of the ‘Timiza Fund’.

The Timiza Fund is aimed at enabling small, medium and large investors to collectively mobilise funds for investing and benefit from the opportunities in financial sector, especially capital markets.

The Fund is run by Zan Securities Limited, which is the Fund Manager, while Mwanga Hakika bank is the custodian.

Chief Executive Officer of the Capital Market and Securities Authority (CMSA), Mr Nicodemus Mkama, said specific objectives of the Fund is to empower Tanzanians from different cadres, including the youth, women and special groups to benefit from the financial sector, building culture of saving and investing among Tanzanians to enable citizens to participate in economy.

Mr Mkama stated that in ensuring the objectives of the Fund are met, the CMSA has approved lowering the amount for participation in this Fund from 1m/- to 10,000/- only.

“This is a very important step for encouraging participation of investors from different cadres including lowincome citizens,” he said.

According to the policy and guidelines for investment in Timiza Fund, the monies to be mobilised from the investors will be invested in capital markets, including Listed Equities, Treasury Bonds and Corporate Bonds.

Tanzania drums for more low-income-centred mutual funds

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DAR ES SALAAM: THE government yesterday launched a mutual fund that targets the low-income bracket, a move envisaged to accelerate financial inclusion in the country.

The collective scheme, Timiza Fund, introduced by Zan Securities, one of the leading stock brokerage firms, is the first private sector mutual fund and the third in the market.

The sector is led by UTT-Amis, which is fully owned by the government.

The fund introduction by a private player symbolises the government’s tireless efforts to widen the participation of society in financial products, making the sector equally accessible to all walks of life.

“This fund will help elevate the degree of financial inclusion in the country by motivating numerous citizens, especially income earners, to engage in capital market investments,” Deputy Minister for Industry and Trade Exaud Kigahe said on behalf of Planning and Investment Minister, Prof Kitila Mkumbo.

“Because the fund’s unit is merely 100/- for a minimum of 100 units… this comes to a minimum investment of 10,000/- which is affordable for the majority,” Mr Kigahe said while gracing the launching ceremony.

Also read: UTT fund value balloons by 50pc in one year 

He said the fund, aimed to raise 10bn/-, is in line with the policies and measures taken by the government to include citizens in investment in economic activities centered on improving their income, especially bodaboda riders and food vendors (mama ntilie).

Zan Securities Chief Executive Officer Raphael Masumbuko said that opportunities for economic progress should not just be accessible to a select few but should instead be open to everyone, regardless of financial status.

“Collective investment plays an important role in making the investment belong to all by providing a platform where people can pool their resources together to obtain a controlled concentration of assets,” Mr Masumbuko said.

The profile of the Timiza scheme is a balanced portfolio investment in both fixed-income securities and listed equities to reduce potential volatility.

The fixed-income securities will comprise at least 0-100 per cent of the portfolio, while 0-50 per cent will be in listed equities.

“The biggest advantage of collective investment is its cooperation as it accommodates both experienced and inexperienced investors,” he said.

Timiza units are open-ended with exit and entry loads after the initial sale, depending on the net asset value (NAV) per unit at that point.

Capital Market and Securities Authority (CMSA) Chief Executive Officer Mr Nicodemus Mkama said the specific objectives of the Fund are to empower Tanzanians from different cadres, including the youth, women, and special groups, to benefit from the financial sector, build a culture of saving and investing among Tanzanians to enable citizens to participate in the economy.

“This is a very important step for encouraging the participation of investors from different cadres, including low-income citizens,” he said.

Mr Mkama stated that in ensuring the objectives of the Fund are met, the CMSA has approved lowering the amount for participation in this Fund from 1.0m/- to 10,000/- only.

Mwanga Hakika Bank’s Managing Director Mr Jagjit Singh said as the custodian bank, they will play their role with the highest level of transparency by practicing good corporate governance and ensuring strict compliance with applicable laws and regulations.