Tanzania has launched the iDollar Fund, the country’s first US dollar-denominated money market fund, aimed at providing investors with a secure and efficient avenue to manage dollar liquidity while earning competitive returns.
Speaking during the official launch in Dar es Salaam yesterday, Capital Markets and Securities Authority (CMSA) Chief Executive Officer, Nicodemus Mkama, described the fund as a strategic milestone in modernising Tanzania’s capital markets.
“With this launch, Tanzania joins Kenya, South Africa, Mauritius and Ghana in offering USD-denominated funds regulated by capital markets authorities,” he said.
The iDollar Fund will invest in a range of US dollar-denominated fixed-income instruments such as corporate bonds, fixed deposits, and call accounts.
According to Mr Mkama, this diversification introduces a new asset class into Tanzania’s investment landscape, expands investor options, and brings foreign currency investments into formal structures.
He added that the fund offers an opportunity for Tanzanians holding dollars to invest locally, rather than seeking offshore alternatives.
“For the national economy, the fund is a critical vehicle for mobilising foreign currency, enhancing economic stability, and strengthening our resilience to external shocks,” he noted.
The fund is also expected to serve the Tanzanian diaspora, providing them with a regulated and secure channel to invest their foreign earnings in the local market.
“Many members of the diaspora send money in dollars, which is not always used immediately. The iDollar Fund gives them a reliable platform to hold and grow their money in foreign currency within Tanzania,” he explained.
He further noted that the launch reflects growing investor confidence in Tanzania’s financial system and demonstrates the value of collaboration between regulators, financial institutions and the private sector in driving inclusive economic growth.
iTrust Finance Director, Prof Mohamed Warsame, said the fund allows investors to access dollar-based assets while offering protection against local currency depreciation.
“Returns will be paid in dollars, and investors have the flexibility to redeem in either US dollars or Tanzanian shillings, depending on their preference,” he said.
He added that digital onboarding through mobile applications will enable both diaspora and local investors to participate and manage their investments remotely.
CRDB Bank Plc Director of Treasury and Capital Markets, Mr Alexander Ngusaru, described the product as more than just a financial instrument.
“This is a gateway to global investment and a symbol of national progress. CRDB is proud to support this initiative with integrity and innovation,” he said.
The iDollar Fund represents a significant leap forward for Tanzania’s financial sector, aligning it with global investment trends while empowering both domestic and diaspora investors to participate in structured, foreign currency-based investment opportunities.