Tanzania Launch First Sharia-Compliant Investment Fund

Tanzania has recently seen the official launch of the Alpha Halal Fund, marking the country’s first Sharia-compliant collective investment scheme.

The fund was introduced by Alpha Capital-Tanzania, a brokerage firm and fund manager, and aims to provide ethical investment opportunities that adhere strictly to Islamic law.

The Alpha Halal Fund is designed to target equities, Sharia-compliant listed funds and other permissible investments in Tanzania.

The Capital Markets and Securities Authority (CMSA) granted approval for the fund’s operational framework earlier this year. The fund is managed by Alpha Capital, with CRDB Bank serving as the custodian.

Investments will be strictly prohibited in sectors such as alcohol production and gambling, aligning with Sharia principles that emphasize ethical finance.

The fund is expected to raise approximately TZS 10 billion by October 17, 2024, with contributions from both local and international investors.

This initiative seeks to include investors who have traditionally been excluded from capital markets due to the lack of suitable products that align with their ethical or religious standards.

During the launch event, the Deputy Minister of State in the President’s Office for Planning and Investment, Stanslaus Nyongo, highlighted the fund’s potential to broaden investment options in Tanzania, increase savings, and enhance capital accumulation within the economy.

He expressed optimism that the fund would attract a wide range of investors, driven by both ethical considerations and the potential for financial returns.