A new sharia compliant collective investment scheme has made its debut in Dar es Salaam, targeting to collect 10bn/- from the market in the next two months.

Dubbed “Alpha Halal Fund “, its primary objective of the fund was to basket ethical financial products within the prescribed territory that adhere to sharia’s principles, so as accommodates ethical and Islamic investors whose individual’s investment options in conventional markets are limited

Gerase Gwalisa, the Scheme CEO said that in Dar es Salaam yesterday at the official launching of the new investment scheme.

He said that an open ended collective investment scheme focuses investments only into ethical and sharia compliant financial products.

He said the scheme also focuses the East Africa community and the SADC regions adding that the fund shall accept funds without the limitations of borders, but also only invest in ethical financial securities, specifically equities and sukuk bonds that adhere to sharia principles authentic outlines in the offer document.

Reports show Islamic finance is today a $3.9 trillion industry spread over more than 80 countries with the bulk of it concentrated in very few markets. 

Comparing data from different sources shows that just 10 countries account for almost 95 percent of the world’s sharia compliant assets.

The fund is also a diversification tool for investors, historically, sharia’s compliant public companies are known to weather market cycles, a case in point is the 2008 financial crisis.

“We have today opened the window for those who are interested to do so and will be closed October 17 this year, ”he said.

He said the fund is open for participation by foreign investors and resident Tanzanians as well as those based offshore.

He said under the security markets and securities (foreign investors regulation act of 2004, foreigners are free to deal in Tanzania’s primary and secondary markets for listed securities and only particularly in the secondary market for the government debt securities.

Under the banking and financial institutions( foreign exchange) regulations 2022 and the foreign exchange(listed securities) (amendment regulation 2014,restrictions  to the capital account have been lifted and foreigners can now fully invest in Tanzania listed securities, excluding treasuries for foreigners based in a territory other that EAC or SADC without limit.

Director Market Supervision and Investigation at the Capital Market and Securities (CMSA)   Exaud Julius said that the authority approved an offer document to Alpha Capital Limited April this year after meeting the Collective Investment Schemes, Regulations 1997.

“I would like to inform you that Alpha Halal Fund has met the regulations, laws and guidelines of the collective investment scheme, ”he said.

In remarks, the Deputy Minister of State,      President's office for planning and investment Stanislaus Nyongo tasked CMSA to increase community awareness on financial literacy.

He said once the community is aware more people will invest through this kind of scheme adding tha concerted efforts were highly needed.

He said the government has continued to improve the business environment to enable the financial sector to prosper.