Dar es Salaam. A new company was unveiled in Tanzania to deal with the brokerage of Islamic bonds and provide investment advisory services related to Sharia-compliant products.
Known as Yusra Sukuk Company Ltd, the firm is the first Islamic brokerage company in Tanzania and sub-Saharan Africa, according to its chairman, Mohammed Issa.
“Our company has two licences for both dealing with securities and operating as an investment advisor,” Mr Issa said during a press conference on Wednesday.
“One important point is that Yusra Sukuk is not competing with companies in the industry but aiming to accelerate the growth of the sector by partnering with other players,” he said, adding that it will only deal with sharia-compliant businesses and provide an avenue for Halal investment.
Although they follow Muslim criteria for Halal dealing, the Sharia-compliant services are open to all people regardless of the differences in their religions.
“We will screen all businesses using the Sharia criteria, but the investment opportunities are open to all people. Our role is to advise those who need Halal investment in both primary and secondary markets,” added Mr Issa.
The company comes at a time when Tanzania is experiencing a rise in the provision of Islamic financial services, which require professional advisors.
Currently, Tanzania has one fully-fledged bank, Amana Bank, that provides only sharia-compliant financial services and some other conventional banks have accommodated a window for Islamic banking.
On the capital markets and securities, Tanzania has only Islamic bonds known as Sukuk which have been allowed since 2020. Sukuk, which normally can be issued by governments or corporates to raise money from investors for a period of time, is a sharia-compliant bond-like instrument that is part and parcel of the Islamic financing system.
However, up to the end of 2022, the value of issued Sukuk had reached Sh44.6 billion, Mr Issa said.
Global Sukuk issuance was set to hit $185 billion in 2022 and was projected to reach $257 billion by 2027, with the data suggesting that the market is there for Tanzanian investors to tap.
The recent issuance of the Sukuk in Tanzania has shown a high appetite for Sharia-compliant services. Last year, KCB Bank Tanzania also issued its first Islamic bond worth Sh10 billion, which was successful by 110 percent.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
