CMSA vows to promote inclusive capital markets

By James Kandoya , The Guardian
Published at 06:00 AM Jul 10 2024
Nicodemus Mkama, CMSA Chief Executive Officer
Photo: courtesy of CMSA
Nicodemus Mkama, CMSA Chief Executive Officer

THE Capital Markets and Securities Authority (CMSA) has committed to continue providing an enabling environment for promoting development of sustainable, inclusive and more diversified capital markets to stimulate the country’s economic growth and development.

Nicodemus Mkama, CMSA Chief Executive Officer, said that in Dar es Salaam on Monday this week at the official launching of the Sanlam Unit Trust Scheme comprising Sanlam Pesa Money Market Fund and Sanlam USD Fixed Income Fund.

Mkama said the primary objective of those funds is to provide opportunities to small, medium, and large scale investors for pooling their resources and invest together so as to benefit from investments made by professional fund managers in the capital markets.

He urged all capital markets stakeholders to continue collaborating with CMSA to economically empower citizens and implement the government's Alternative Project Financing (APF) Strategy.

He said the decision is aimed at enabling the government and the private sector to obtain financial resources for various development activities, thereby fostering social development and economic growth of our country.

The CMSA boss said that the establishment of the funds supports implementation of the government to expand access of financial services to a wider segment of population in urban and rural areas and economically empowering citizens.

Furthermore, he said that it was one of the key pillars enshrined in the Third National Financial Inclusion Framework (NFIF III) 2023-2028 aiming at increasing participation of retail and institutional investors including youth and women in the capital markets.

“As part of the initiatives to ensure achievements of investment objectives of these funds, CMSA has approved lowering the minimum amount for investing in these Funds from 1/-m to 10,000/-,”he said

“This is a significant step aimed at facilitating investors’ access in these Funds, and thus enables increased participation of investors, including citizens with low and medium incomes.”

According to him, the financial resources obtained from investors will be invested in money markets and capital markets, including investments in treasury bills, bank deposits, and shares of listed companies, government bonds and corporate bonds.

He said the objective of that type of investment is to ensure that the funds have sufficient liquidity to meet investors' financial needs as they arise.

Mkama said that investment in those funds offers various benefits for community welfare and economic development in our country.

Some of the benefits are investments made by those Funds in government bonds will facilitate raising of financial resources to finance development projects as outlined in the Government's Alternative Project Financing (APF) Strategy.

Also, investors will receive returns from investment made while simultaneously being part of financiers of projects funded by the amount raised through Government Bonds.