Why govt urges youths, women participation in capital market

TANZANIA: MOST women and young people, including graduates from primary, secondary schools and university training institutions complain of lack of employment, where many are idle at home and on streets while others are involved with bad groups.

In efforts to address this challenge, the government in collaboration with development partners and the private sector have been taking different measures to create job opportunities, including self-employment, which incorporates investments.

It is from this view that the Zanzibar Minister of State- President’s Office (Finance and Planning) Dr Saada Mkuya Salum encouraged Zanzibari youths, women and other small retail investors to avail themselves of the investment opportunities in the capital market.

She encouraged them to take advantage of the opportunities and invest in the Collective Investment Scheme named ‘TIMIZA FUND; established by Zan Securities.

“This is a mutual fund which leaves no one behind, from low to high level income investors, including local and foreign, and which also promotes gender balnce,” Dr Saada said in her speech at the launch of TIMIZA Fund here. Her deputy minister, Mr Juma Makungu Juma read the speech on her behalf.

She explained that the objective of the TIMIZA Fund is to provide a wider opportunity for various investors to invest in a way that makes them benefit from the opportunities available in the financial market system in the country and the economy as a whole.

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“I have been told that in the initial sale the value of one piece will be one hundred Tanzanian shillings (100/-) and the minimum investment is ten thousand shillings (10,000/-), equivalent to buying only 100 pieces,” Dr Saada explained. She observed that this means that the TIMIZA Fund will provide opportunities for more citizens, especially those with low incomes, to participate in the economy.

“This will not only increase the level of use of financial inclusion services (financial inclusion level), but will also increase the level of inclusive economic growth,” she emphasised.

With the history of Mutual Investment Funds in the country, the Isles Finance Minister explained that with the establishment of TIMIZA FUND, Zan Securities becomes the third institution to operate a mutual investment fund approved by CMSA.

This makes it the first one to be run by a manager with three different licences from CMSA, thus making the TIMIZA Fund unique as its managers, because apart from having a Fund Management licence, it also has agency licences in its stock market and an investment advisory licence.

Dr Saada says that this situation will increase productivity in the Fund’s operational efficiency and thus give it more confidence and attract more investors, especially small ones (retail investors).

She congratulated ZAN SECURITIES, which has more than fourteen (14) years of experience in investing in the capital market sector in the country, for being the first company in Zanzibar that provides stock market services.

“I accepted the invitation to be the guest of honour at this event because it is in line with the policies and plans of the government of President Dr Samia Suluhu Hassan and President Dr Hussein Ali Mwinyi, respectively to involve people in investment and economic activities with the aim of improving their income and living conditions. Programmes such as Boost Inclusive Growth in Zanzibar (BIG-Z); transforming the Energy Industry’; and the rural and urban roads development aims at developing the country.

On his part, the Director General of Zan Securities, Mr Raphael Masumbuko said that he joint investment fund will help to open the doors of various opportunities, even those that are beyond the ability of an individual, as the investment is for all people of all incomes.

The ZAN SECURITIES board chair, Mr Abdisalaam Issa Khatib said that Timiza Fund will be a catalyst in bringing about a change and motivating investors by saving and investing to increase the level of the country in the use of financial services.

“It will also bring competition to the operators of mutual funds and thus increase the productivity of the output for investors and output of the country. The money that will be collected by this fund will go to invest in government bonds and shares of companies listed in the stock market, so it is obvious that the efficiency of the companies in the stock market is a very important thing in the operation of the funds” he said.

The Director of Policy Planning and Research at the Capital Markets and Securities Authority (CMSA), Mr Alfred Mkombo said the “Timiza Fund will be run by Securities institutions and Mwanga bank.” “Indeed, these funds are good for people with income and those with low income and it really gives opportunities to us at the CMSA when we see many funds coming because of providing efficiency,” he said.

Mr Emmanuel Nyalali on behalf of the Chief Executive of the Dar es Salaam Stock Market thanked the government for providing a large tax relief in investment and in the capital and security markets.

He called on employees to invest in the Fund in order to fulfill the goals they have set for themselves, including investing for education, construction, home renovation, retirement, vacation travel expenses, as well as health services.

A joint investment fund was established in 2019 under Zan Securities with the aim of involving citizens to join the Capital and Securities Markets System in order to benefit economically.

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