UTT AMIS poised for regional expansion

DAR ES SALAAM: AS the country’s collective investment industry evolves and matures, local fund managers are increasingly seeking growth opportunities beyond national borders.

This shift is largely driven by a combination of favourable regulatory reforms, advancements in digital finance and growing investor confidence.

These factors are enabling the sector to position itself as a key player in regional capital mobilisation.

The surge in collective investment schemes reflects a broader transition away from informal savings practices towards more structured, professionally managed funds.

Investors are gravitating towards these funds in search of greater stability, transparency and the potential for higher returns, particularly in an increasingly unpredictable global economic environment.

Amid this evolving landscape, UTT Asset Management and Investor Services (UTT AMIS) has emerged as a strong contender for cross-border expansion.

The firm has demonstrated impressive growth in assets under management, investor base and fund performance, signalling its readiness to capitalise on regional growth opportunities.

As the sector increasingly attracts stronger inflows and a broader range of participants, UTT AMIS’s expansion prospects appear promising, positioning the firm to take advantage of the shifting investment dynamics in the region.

The six-collective funds holder plans to expand its reach by exploring its investment opportunities in the East African Community (EAC) and as well the South African Development Countries (SADC), with the focus of bringing investment opportunities closer to the people around the area.

Speaking during the company’s Annual General Meeting (AGM) held on Friday, UTT AMIS’ Managing Director Mr Simon Migangala said the company is exploring opportunities within the East African Community (EAC) and the Southern African Development Community (SADC), alongside plans to introduce new products designed to attract both local and foreign investors.

“We are laying the foundation for regional integration by strengthening our systems, expanding product offerings and enhancing accessibility for investors at home and abroad,” he said.

The desire towards turning its focus to regional markets is fuelled by the scale and stellar performance UTT registered by the year-end.

The firm’s asset base grew sharply during the year, rising to 3.2tri/- by the year-end up from 2.2tri/- posted at the beginning of the financial year, an increase of more than 1.0tri/- within 12 months.

The growth has been mirrored by a surge in investor participation with UTT investor base grew from about 300,000 at the start of the year to more than 500,000 currently, underscoring growing public appetite for structured investment products.

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“This performance reflects growing confidence in regulated investment products and provides a strong platform for our next phase of growth,” Mr Migangala said.

Currently, UTT manages six collective schemes including Umoja Fund, Wekeza Maisha Fund, Watoto Fund, Jikimu Fund, liquid Fund and Bond Fund.

He noted that UTT’s flagship Umoja Fund, launched in 2005, has grown more than eightfold in value from 50bn/- at inception to about 400bn/- currently while delivering returns of over 12 per cent in the past year.

In addition, other UTT-managed funds recorded returns ranging between 13 and 14 per cent.

Despite the milestone, UTT AMIS management has made various improvements to ensure seamless services including an upgrade to its technology platforms by integrating its services with mobile phone networks, allowing investors to manage portfolios remotely.

In addition, the firm is also developing a more advanced digital system to enable Tanzanians living abroad to invest seamlessly.

To support domestic growth alongside regional ambitions, UTT has expanded its physical footprint by opening new offices in Morogoro and Kahama, extending access beyond major urban centres.

UTT AMIS’ Chairman, Prof Faustin Kamuzora said the company’s performance demonstrates the safety and professionalism of its investment approach.

“Our funds are secure, professionally managed and carry minimal risk. This consistency gives us credibility as we look to compete beyond our borders,” Prof Kamuzora said.

He said that UTT’s six investment funds are structured to meet diverse investor needs, positioning the firm to play a bigger role in regional capital markets.

He further stressed that the fund plans to continue introducing a range of products that will make investing easier, contributing to country’s target of achieving a 1.0 trillion US dollars economy by 2050.

“Investment in the financial sector is critical. It allows people to invest small amounts and earn returns that can grow over time, ultimately strengthening the economy,” he said.

As Tanzania’s collective investment industry matures, UTT AMIS is leveraging scale, technology and investor trust to transition from a domestic market leader into a regional investment player, signalling a new phase in the country’s financial sector integration with East and Southern Africa.