Dar es Salaam. The Capital Markets and Securities Authority (CMSA) has approved the prospectuses and operational agreements of five collective investment schemes with iTrust Finance Limited.
The announcement was made yesterday by CMSA CEO, Mr Nicodemus Mkama, who emphasised that the primary objective of these funds is to enable small, medium, and large investors to pool their resources and capitalise on opportunities within the financial sector, particularly in the capital markets.
“By approving these collective investment schemes, we are encouraging investments and boosting capital flow, which is vital for economic growth,” Mr Mkama said.
He further noted that the approval allows a broader segment of the population to access financial products, diversify their investments, and stimulate economic activity.
According to Mr Mkama, fostering a more active and transparent financial market will lead to increased investor confidence, improved economic stability, and potentially higher returns on investments.
He noted that such initiatives often result in job creation, infrastructure development, and better resource allocation across various sectors, further contributing to overall economic growth.
The chief executive of iTrust Collective Investment Fund, Prof Mohamed Warsame, elaborated on the launch of the iTrust Collective Investment Fund, a pooled investment scheme designed to allow multiple investors to combine their capital and invest in a diversified portfolio that includes equities, bonds, bank deposits, and other securities.
“This launch marks a significant step towards providing both individual and institutional investors in Tanzania with access to a professional investment management system aimed at growing their wealth while reducing risk,” Prof Wasame explained.
He outlined that the iTrust Collective Investment Fund operates in five key areas, including fundraising, where capital is sourced from individuals, groups, institutions, and organisations to create a sizable fund for investment.
A professional fund manager will oversee the fund’s portfolio, making informed decisions to ensure a balanced mix of investments.
“The fund is diversified across various asset classes, which helps to minimise risk and increase the likelihood of generating stable returns,” he added.
Prof Warsame further explained that the fund will generate earnings from its holdings, including interest on bonds and capital gains from appreciating equities.
These returns will be distributed to investors in proportion to their share of the fund, enhancing the value of their investments.
Key benefits for investors include diversification, which minimises risk and maximises potential returns by spreading investments across various asset types.
By diversifying the portfolio, the fund aims to mitigate the impact of poor-performing assets on overall investment performance.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
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