Safaricom PLC has received regulatory approval from the country’s Capital Market Authority (CMA) to launch its second money market fund product.
Known as ZiIdi, the product will be offered in partnership with three fund managers, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.
The fund will be accessible through the M-PESA platform, making it convenient for subscribers to grow wealth through the capital markets.
The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah, said on Wednesday ”the milestone underscores the commitment to foster innovation which also enables Safaricom to enhance its footprint in the finance services sector.”
‘’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.
Ziidi marks Safaricom’s second foray into the money market space, following the introduction of its first product, Mali, in December 2019. Mali, the Swahili name for Wealth, allows M-PESA users to invest as little as KES 100 ($0.77) and up to a maximum of KES 70,000 ($540), offering an annual return of 10%.
Since Mali is an M-PESA product, customers can withdraw their funds instantly, either in full or partially. It also boasts free deposits and withdrawals, which is a good bet. This is expected to be the same case with the Ziidi money market fund.
Safaricom has not yet revealed the interest charges for the Ziidi money market fund product as well as when the product is expected to go live.
This move highlights Safaricom’s ongoing efforts to expand its financial services portfolio, reinforcing its position as a key player in promoting financial inclusion in Kenya.
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