Safaricom partners with 3 fund managers to launch new money market fund

Telecommunications giant Safaricom PLC has received the green light from the Capital Markets Authority (CMA) to launch the Ziidi Money Market Fund, a Collective Investment Scheme (CIS) that integrates with the M-PESA platform.

This marks a significant milestone in Safaricom’s journey to expand its footprint in the financial services sector while promoting financial inclusion.

The Ziidi Money Market Fund is designed to offer Safaricom subscribers an accessible and convenient way to grow their wealth. By leveraging the ubiquity of M-PESA, the platform will make it easier for users to invest in low-risk, short-term financial instruments.

CMA Chief Executive Officer Mr Wyckliffe Shamiah underscored the innovative nature of this initiative.

READ: Safaricom receives license to offer new product as M-PESA revenue hits Sh77.2 billion

To ensure the success of the Ziidi Money Market Fund, Safaricom has partnered with three reputable fund managers: Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.

The collaboration aims to provide investors with diversified and professionally managed investment options.

Money Market Funds (MMFs) are mutual funds that invest in low-risk, short-term debt instruments such as Treasury bills, commercial paper, and certificates of deposit.

They are an attractive option for investors seeking a safe and liquid investment avenue while earning returns higher than those of a regular savings account.

This innovative solution empowers individuals to save and invest in a safe and flexible manner.

READ: Safaricom clarifies Sh104.8B investment in Ministry of Health's digital healthcare plan

As the financial community anticipates the launch, questions remain about the future of Safaricom’s previous Mali Money Market Fund, developed in partnership with Genghis Capital.