THE iDollar Fund, the country’s first dollar-denominated money market fund, was unveiled yesterday by the Capital Markets and Securities Authority (CMSA).

Nicodemus Mkama, the regulator agency CEO, described the fund as a milestone in the growth and modernization of local capital markets, offering investors a secure and efficient way to manage dollar liquidity while earning competitive returns.

“With this launch, Tanzania joins four other African countries—Kenya, South Africa, Mauritius, and Ghana—that offer similar USD-denominated investment funds approved by their capital markets regulators,” he said

The fund will invest in a diversified range of dollar-denominated fixed-income instruments, including corporate bonds, fixed deposits and call accounts. This diversification introduces a new asset class in the local market, broadening investor choice and attracting foreign currency investments into formal structures, he stated.

The fund provides an opportunity for local investors, especially those with dollar holdings, to invest locally rather than seeking opportunities abroad, he said, underlining that the fund is a critical tool for mobilizing foreign currency.

It boosts economic stability and strengthens the country’s ability to manage external shocks, he stated, noting that the fund is also designed to support those in the Diaspora to invest foreign earnings back home through safe, regulated platforms.

 “Diaspora often send money in foreign currencies like the US dollar and not for immediate spending, thus iDollar gives them a convenient option to hold and invest in that currency within the country,” he explained.

“Today is not only a celebration of a product launch, it consolidates confidence in the country’s financial sector development. It is also a testament of the important role of the regulator, private sector and investors working together toward a shared goal of inclusive and robust economic growth and development of our economy,” he asserted.

Prof Mohamed Warsame, the iTrust Finance director, said the fund gives investors access to dollar-based assets while protecting them from local currency depreciation.

 “Investors will earn returns in USD through dollar-denominated instruments. Redemption is flexible—investors can withdraw in dollars or convert to the local currency when needed,” he said.

The fund also features digital on boarding platforms—including mobile apps—making it easy for the Diaspora and local investors to participate remotely and track their investments.

Alexander Ngusaru, the CRDB Bank director of treasury and capital markets, said that the new asset is a gateway to global investment and a symbol of national progress. “CRDB is proud to support this milestone with integrity, innovation and lasting impact,” he said

The iDollar Fund marks a bold step forward for Tanzania’s financial sector, aligning it with global investment trends while empowering local and Diaspora investors, the director added.