THE Capital Markets and Securities Authority (CMSA) has said that the establishment of more investment funds is part of the implementation of the government's strategies to increase the scope of access to financial services for many citizens in rural and urban areas.

The Authority's Chief Executive Officer, Nicodemus Mkama, said this at the launch of the iTrust Finance Limited’s investment Funds in Dar es Salaam yesterday.

Mkama said that the implementation of this ambition is outlined in the third plan of financial services with the aim of increasing the participation of citizens in the formal financial sector including the capital markets.

Mkama said that the authority approved the initial offering and the operations of five investment Funds on October 11 this year.

He said that the approval was given by the Authority after meeting the requirements of the Capital Markets and Securities Act Cap 79 and the Regulation of Capital Markets and Securities.

"Investment in these funds has various benefits in the welfare of society and the development of the economy as a whole," said Mkama.

Mkama mentioned some of the benefits that contribute to the implementation of government’s policies, economic empowerment of citizens, and access to financial resources to finance development projects.

He asserted that the investment in these funds offers various benefits in investment for citizens where investors get the opportunity to invest their money in various areas and projects and thus reduce risks.

Prof Mohammed Warsame, Director iTrust Finance Limited said that the company aims at raising 37.5bn/- in a space of two weeks until November 29.

He asserted that the iTrust scheme is formed of five Funds namely: iSave Collective Investment Fund, iCash Collective Investment Fund, iMaan Collective Investment Fund, iIncome Collective Investment Fund and iGrowth Collective Investment Fund.

“The collective investment funds operates in five key areas including fundraising which involves collecting funds from individuals, groups, institutions and companies,” he said.

Warsame clarified that among benefits of investing in the Funds is the convenience for investors as they can contribute as frequently or infrequently as they wish, based on their financial goals.

He said this flexibility allows them to plan their investments according to their needs.

On his part, Gilead Teri, Executive Director, Tanzania Investment Center (TIC) said foreign direct investments had flourished since President Samia Suluhu Hassan assumed the top office in March 2021.

In 2020, TIC enriched investment projects worth $2billion, while this year until last week, TIC enriched projects worth $7billion. He said TIC aimed at registering investments worth $30 billion by 2030.

According to him, the pooled investment scheme that collects funds from multiple investors to invest in a diversified mix of assets such as equities, bonds and bank deposits.

"These investments have been made in the industrial, transport, agriculture, tourism and construction sectors. The investment of iTrust Finance is coming to be the catalyst for Tanzanians to grow their economy," he said.

He said that in order for normal investment to grow, there must be sufficient circulation of money in the financial markets where this innovation comes to increase productivity in real economic sectors.

He reminded stakeholders from the business community that the government is reviewing the Investment Act 2022 to allow the merging of TIC and Export Processing Zone Authority (EPZA) to improve efficiency in service delivery.

He said that the business community should take part in sharing their views for the improvement of the Investment and Special Economic Zones draft which was tabled for the first time in the parliament last week.

“We need to learn from the business community what incentives they wish to be featured in the new law,” he said.