DAR ES SALAAM, March 2 (NNN-DAILYNEWS) — GOVERNOR of the Bank of Tanzania (BoT), Emmanuel Tutuba, has reassured individual investors, businesspeople, and other stakeholders that the ‘Zanzibar Sukuk’ is safe.
Speaking at his office in Dar es Salaam, alongside a delegation from Zanzibar led by the Minister of State in the President’s Office for Finance and Planning, Dr Saada Mkuya Salum, the Governor said that the Sukuk initiative is a result of the country’s financial law reforms, which have paved the way for such projects.
“We commend the government of Zanzibar for seeking funds through Sukuk for development projects.
This is a great initiative that could potentially be adopted by the Union government as well,” Tutuba said.
BoT Deputy Governors Sauda Kassim Msemo and Dr Yamungu Kayandabila, who also attended the meeting, praised the Zanzibar Sukuk, noting that it would help boost investor confidence and enhance financial inclusion.
Minister Dr Saada was in Dar es Salaam to meet with the BoT leadership as part of efforts to promote the Sukuk initiative, which in its first phase aims to raise 1.15tri/- for various development projects.
Earlier, Dr Saada explained the reasons behind Zanzibar’s launch of the Sukuk, with the registration window officially opening on March 8th and closing on April 6th this year.
Investors in Sukuk will earn an annual return of 10.5 per cent. A Sukuk fund is an investment vehicle that invests in Sharia-compliant assets, specifically Sukuk, which are Islamic debt instruments that represent ownership in underlying assets, rather than interest-bearing bonds.
This investment opportunity is open to investors of all faiths. — NNN-DAILYNEWS
