Dar es Salaam. Tanzania’s capital markets welcomed a new addition yesterday with the launch of the Alpha Halal Fund, a Shariah-compliant collective investment scheme introduced by Alpha Capital-Tanzania, a brokerage firm and fund manager.
The fund aims to provide investors with ethical investment opportunities that adhere strictly to Islamic law. Targeting equities, Shariah-compliant listed funds, and other permissible investments, Alpha Capital-Tanzania seeks to diversify the investment landscape through this new offering.
“This is a significant step towards including investors who have traditionally been left out of capital markets due to the absence of products or services that align with their ethical or religious standards,” said Alpha Capital chief executive Mr Gerase Kamugisha.
Alpha Capital chief executive Mr Gerase Kamugisha
According to Kamugisha, the fund aims to raise about Sh10 billion by October 17, 2024, with contributions expected from both local and international investors.
Gracing the event, deputy Minister of State in the President’s Office (Planning and Investment), Mr Stanslaus Nyongo, emphasised the importance of the Halal Fund in broadening the scope of investment in Tanzania.
“The fund would not only increase savings and capital accumulation within the economy but also open new doors for the investment community in Tanzania by offering diverse investment options,” he said.
Mr Nyongo expressed optimism that the fund would attract a wide range of investors, both for ethical reasons and due to its potential for financial returns.
He said the fund is expected to draw significant foreign capital, thereby enhancing liquidity in Tanzania’s capital markets, which would benefit individuals and companies seeking investment for various sectors of the economy.
The Capital Markets and Securities Authority (CMSA) granted approval for the fund’s Offer Document and Operational Agreement on April 16, 2024, the regulator said.
CMSA chief executive, Mr Nicodemus Mkama, confirmed that the fund meets all legal and regulatory requirements under Tanzania’s Capital Markets and Securities Act and adheres to the guidelines for collective investment schemes.
“The fund provides an opportunity for small, medium, and large investors to pool their resources and invest collectively in Sharia-compliant capital market opportunities,” he said.
He underscored that the fund is managed by Global Alpha Capital Limited, with CRDB Bank serving as the custodian, ensuring the fund’s compliance with ethical finance principles.
According to him, the Alpha Halal Fund is designed to align with ethical finance principles, strictly prohibiting investments in activities such as alcohol production, gambling, and high-risk ventures.
“These principles ensure that all investments are backed by tangible assets and that the benefits of the investments are equitably shared among all stakeholders,” he said.
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Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades
EXIM Bank to raise 300m/- over the next three years for financing essential services and infrastructure upgrades in mental health facilities.
The bank’s Head of Marketing and Communications Stanley Kafu unveiled this when introducing Exim Bima Festival 2024 as a platform for bringing together individuals, organisations and various sectors for raising the funds.
“Exim’s initiative aligns with the government’s broader goals to ensure that every citizen has access to quality healthcare, including mental health services,” he said.
The initiative, which is one of the events for celebrating the bank’s 27th anniversary is scheduled for Wednesday this week in Dar es Salaam.
Mr Kafu highlights that this year’s festival is not only about raising awareness of the importance of insurance in the society but also focuses on enhancing access to mental health services and improving the overall well-being of the nation.
Statistics from the Ministry of Health shows a staggering 82 per cent increase in mental health cases over the past decade.
Mental cases have risen from 386,358 in 2012 to 2,102,726 in 2021, making the need for mental health services more urgent than ever.
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Unfortunately, the country’s ability to address this growing challenge is hindered by a shortage of mental health professionals, infrastructure, medical equipment and essential medication.
For example, out of the 28 regions in the country, only five have facilities that provide adequate mental health services.
The most affected group is the youth aged 15 to 39, who represent the nation’s workforce, underscoring the need for intensified efforts to safeguard this generation for Tanzania’s future well-being and development.
Mr Kafu said by improving mental health services, Exim aims to contribute to the creation of a network of communities that can access care quickly and affordably.
Exim Insurance Department Manager Tike Mwakyoma said they are appreciating the support from partners in the insurance industry, who have stood by them since the last festival.
“Let’s continue this unity for the development of all Tanzanians and our nation as a whole,” the manager said.
Source: allafrica.com
