Tanzania strengthens investment with iDollar Fund
DAR ES SALAAM: IN a strategic move to strengthen domestic investment and increase the contribution of foreign currencies to the national economy, iTrust Finance Limited has officially launched the iDollar Collective Investment Scheme.
The fund will allow Tanzanians to invest using foreign currencies such as US Dollars, British Pounds Sterling, and other international currencies.
Speaking at the launch event held in Dar es Salaam, the Chief Executive Officer of the Capital Markets and Securities Authority (CMSA), CPA Nicodemus Mkama, stated that this development stems from a favorable policy and legal environment established by the government through CMSA to support the growth of the capital markets sector.
“This fund is a vital tool for mobilizing foreign currency. It contributes to economic stability and strengthens the country’s ability to manage foreign-related challenges. It also enables Tanzanians to invest their foreign currency savings from their bank accounts into this collective investment scheme,” said CPA Mkama.
He added that with the launch of this fund, Tanzania joins other African countries such as Kenya, South Africa, Mauritius, and Ghana, which already have similar systems in place. He urged Tanzanians, institutions, and companies to seize this opportunity to grow their investments through foreign currencies.
CPA Mkama further explained that the iDollar Fund is among the collective investment schemes registered and approved by CMSA, alongside those managed by UTT AMIS. He emphasized that the fund will also serve as a platform for diaspora Tanzanians to invest their foreign earnings and contribute to the growth of the local economy.
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On his part, Prof. Mohamed Warsame, Managing Director of iTrust Finance Limited, said the iDollar fund aims to provide a solution for the many Tanzanians who already have dollar accounts in banks but lack a structured and rewarding way to invest those funds.
“This fund gives Tanzanians an opportunity to invest their US dollars directly from their accounts and receive returns in dollars. We were compelled to introduce this solution following recent legal changes, which prohibit the use of foreign currencies in domestic transactions such as paying school fees, rent, or other services,” Prof. Warsame explained.
He noted that following the legal directive, the Bank of Tanzania instructed that foreign currencies should no longer be used in local transactions. As a result, this fund presents an alternative investment avenue for individuals and entities already holding foreign currency balances.
The iDollar fund will be managed by iTrust Finance Limited, a licensed entity under CMSA, while CRDB Bank will oversee the custody and management of the fund’s assets.
