Safaricom PLC has received regulatory approval from Kenya’s Capital Markets Authority (CMA) to roll out the Ziidi Money Market Fund, marking a strategic expansion of the telecommunications giant into financial services.
Safaricom has collaborated with three fund managers; Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited to facilitate the Ziidi Money Market Fund. The fund, which is designed to provide Kenyans with a convenient and secure investment avenue, aims to encourage more people to grow their savings and achieve financial goals.
“Ziidi Money Market Fund is expected to empower unit holders by offering accessible and diversified investment options as part of the broader National Government’s financial inclusion strategy,’’ CMA said in a statement.
The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, said the milestone underscores the commitment to foster innovation which also enables Safaricom enhance its footprint in the finance services sector.
The Ziidi Money Market Fund offers an innovative approach to investment by integrating mobile technology, making it accessible to Safaricom’s vast network of over 42 million subscribers. By using M-Pesa, Safaricom’s popular mobile money platform, investors can easily deposit and withdraw funds, a feature that aligns with the company’s vision of simplifying financial services.
Safaricom introduced its first money market fund (MMF), Mali, in partnership with Kenyan investment bank Genghis Capital, in 2019. The fund, established and governed by a trust deed dated 31 December 2020, operates as a digital money market fund and is registered with the Capital Markets Authority.
Its primary objective is to generate a total return by investing in a variety of short-term treasury and money market instruments (with maturities of up to 1.5 years), as well as cash and near-cash holdings in the Kenyan market, while ensuring maximum security for investors.
The statement of profit and loss shows a profit for the year ended 31 December 2023 of Ksh 76,20,053 and the statement of financial position shows the net assets as at 31 December 2023 as KSh 1,424,157,430.
With the launch of the Ziidi Money Market Fund, Safaricom joins a competitive financial services market populated by established players like banks and asset management firms. However, Safaricom’s technological expertise and its established mobile money infrastructure give it a significant advantage.
The launch of the Ziidi Money Market Fund aligns with Kenya’s Vision 2030 agenda, which prioritizes financial inclusion as a key driver of economic development. By lowering barriers to investment, Safaricom aims to foster a culture of savings and investment among Kenyans.
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