New retirement investment fund seeks to expand access

Dar es Salaam. Tanzanians working in both informal and informal sectors are set to gain access to a new retirement savings and investment vehicle following the launch of a new collective investment fund.

Called Foresight Private Retirement Fund (FPRF), the collective investment scheme is designed to broaden financial inclusion and long-term wealth creation, according to the fund manager Core Securities Limited.

Speaking at the launching event on Tuesday June 16, 2026, Core Securities Ltd chief executive officer, Mr George Fumbuka, said the fund was designed to complement existing social security schemes by providing an alternative retirement investment option for people who may not be adequately served by conventional pension arrangements.

"Social security funds continue to play an important role in improving the welfare of Tanzanians. However, this fund creates additional investment opportunities and gives people greater flexibility in planning for their retirement," he said.

Mr Fumbuka said the Capital Markets and Securities Authority approved the fund on April 28, 2026, under the Capital Markets and Securities Act and the Collective Investment Schemes Regulations.

Mr Fumbuka said one of the fund's key features is its accessibility, with individuals able to begin investing with as little as Sh10,000.

Unlike many traditional pension schemes, which often require lengthy contribution periods before benefits can be accessed, investors in FPRF will be eligible to access their savings after five years.

Upon maturity, investors may choose to receive their benefits as a lump sum, regular pension payments or a combination of both.

"People's financial needs vary. Some may prefer a steady income after retirement, while others may require funds for healthcare, family obligations or business opportunities. The fund provides flexibility to meet those different needs," he said.

The scheme also offers liquidity, allowing investors to sell their units at the prevailing Net Asset Value after the five-year investment period, with payments expected within two trading days.

Capital markets expert Dr Ibrahim Mwangalaba described the fund as a significant step towards expanding access to retirement planning and investment opportunities beyond the country's traditional pension system.

He said retirement savings in Tanzania have historically been associated with formal employment, leaving a large segment of the population, particularly self-employed individuals and informal sector workers, with limited avenues to prepare financially for old age.

"Through FPRF, every Tanzanian—whether formally employed, self-employed, a business owner or engaged in informal economic activities—can invest and plan for the future in a flexible and accessible manner," he said.

Dr Mwangalaba urged Tanzanians to cultivate a culture of long-term saving and investment, noting that financial security in retirement should not be viewed as a privilege reserved for formally employed workers.

"Every Tanzanian deserves financial dignity and security after their productive years. This fund provides an additional pathway towards achieving that goal," he said.

Under the scheme, NMB Bank Plc will serve as trustee and custodian of investors' funds.

The fund aims to raise up to Sh10 billion through the issuance of 100 million investment units, each priced at Sh100.

To cater for investors with different financial goals and risk appetites, FPRF has been structured into three investment plans based on age groups.

The Youngsters' Plan targets investors below 35 years and focuses on capital growth, while the Middle-Agers' Plan is designed for those aged between 35 and 50 years through a balanced investment strategy. The Seniors' Plan targets investors above 50 years and prioritises lower-risk investments such as government securities.

Investment transactions will be conducted electronically through CorE Securities' digital platform, selected NMB Bank branches and licensed agents linked to the Dar es Salaam Stock Exchange.

Speaking on behalf of the Tanzania Teachers' Union (TTU), National Executive Committee member Mr Nelson Mabula welcomed the initiative, saying its low entry threshold would enable more teachers and workers to participate in long-term savings and investment.

"The minimum investment requirement of Sh10,000 makes this opportunity accessible to many of our members. We believe it will contribute to their long-term financial wellbeing and prosperity," he said.