DAR ES SALAAM: THE listing of the Zan Timiza Exchange-Traded Fund (ETF) on the Dar es Salaam Stock Exchange (DSE) is expected to broaden public participation in capital markets by making investment opportunities more accessible to ordinary Tanzanians.
Managed by Zan Securities Limited, the fund attracted strong retail investor interest, with individual investors accounting for 99 per cent of subscriptions during the initial offering, while institutional investors contributed one per cent.
Speaking during the listing ceremony yesterday, Acting Permanent Secretary in the Ministry of Finance and Commissioner for External Payments, Mr Rished Bade said the achievement demonstrated the potential of capital markets to mobilise domestic savings for national development.
He said the listing would expand investment opportunities and strengthen the role of capital markets in mobilising long-term financing.
The fund is the first regional ETF investing in East African Community (EAC) collective investment schemes through a fund-of-funds (FoF) structure to be listed on the domestic stock exchange.
Mr Bade said the listing supports the Financial Sector Development Master Plan and Vision 2050 by promoting a savings culture, increasing market liquidity and mobilising domestic capital.
Zan Securities Chief Executive Officer, Mr Raphael Masumbuko, said the fund raised 9.46bn/- against a target of 5bn/-, reflecting the potential to mobilise domestic savings through accessible investment products.
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“The success of this offering is not only about the amount of money raised, but also the number and profile of investors who participated, particularly ordinary Tanzanians,” he said.
Capital Markets and Securities Authority (CMSA) Director of Market Supervision and Investigation, Mr Exaut Julius, said listing the fund would broaden investor participation and improve market liquidity by allowing investors to trade their units on the exchange.
He added that the listing would help investors establish the market value of their holdings.
Meanwhile, DSE Business Development Manager, Mr Emmanuel Nyalali, said diversifying investment products beyond equities and bonds would accommodate investors with different financial capabilities.