Investment at Large
In an initiative that tackles the various challenges East Africans in the diaspora face, while trying to invest back home, the Diaspora Investment Club (DICL) has outlined new ways to make it easier and safer to invest.
Africans in the Diaspora face several challenges when investing in Kenya.Key among the challenges are:
- Lack of information and opportunity to engage in credible investments back home
- Security and management of investments back home
- The High cost of remittances
- The mechanisms for Making and receiving payments to and from home
Through Diaspora Investment Management Ltd (DIML), Kenyans in the Diaspora now have an opportunity to invest in Eastern Africa, while addressing the aforementioned challenges. There is an opportunity for the Diaspora to invest in the following ventures:
- Diaspora Unit Trusts Fund Scheme (Collective Investment Scheme)
- Tangaza Ltd (Money Transfer company) and Mobilepay Ltd (ICT company)
- Diaspora Commercial Bank Project
DIASPORA UNIT TRUSTS FUNDS SCHEME(DUTFS):
Diaspora Unit Trusts Funds Scheme (DUTFS) is a Collective Investment Scheme licensed by the
Capital Markets Authority of Kenya, under Section 12 Regulations, 2001. It is open to all Kenyans and East African nationals abroad.
The initial and current sub-funds of DUTFS are:
(a) Diaspora Money Market Fund (conservative investors)
(b) Diaspora Bond Fund (medium risk investors)
(c) Diaspora Equity Fund (high risk investors)
- i. Diaspora Real Estate Investment Trust
- ii. Diaspora Venture Capital Fund
- iii. Diaspora Retirement Benefits Scheme
- iv. Diaspora SACCO
The Fund's service providers are;
- (a) Sponsor: Diaspora Investment Management Ltd
- (b) Trustee: National Bank of Kenya Ltd
- (c) Custodian: Equity Bank Ltd
- (d) Fund Managers InvesteQ Capital Ltd
- (e) Auditors PKF (Kenya) Ltd
- (f) Legal Advisors Kang’ethe & Mola Advocates
Tangaza Money Transfer
Tangaza Money Transfer is the 5th money transfer company to be licensed by the Central Bank of Kenya (CBK) and the Communication Commission of Kenya (CCK) operating in Kenya. Recruitment of Tangaza Agents nationwide is currently ongoing with a target of 12,000 agents spread across all corners of Kenya.
Tangaza has applied for an International Money Transfer license in the United States of America, under Tangaza LLC registered in DC. Plans are underway to apply for other international markets; European Union, Middle East, Southern Africa, Australia, East African Member States.
Diaspora Investment Management Ltd has reserved an ownership of 20% in Community Development Systems Ltd (the holding company that owns Tangaza Ltd and Mobilepay Ltd-ICT Company that drives Tangaza), which will be open to Kenyans in the Diaspora to invest in.
Advantages and benefits of investing in Tangaza.
1. Sending money on Tangaza will reduce the current cost of money transfer by over 50% ( this works out to about 5%, down from the current 13-15%)
2. The Diaspora will get the market rate for Foreign Exchange
3. The Diaspora will also be able to send their money home Online and on Mobile in real-time (i.e. Instantly)
4. Once one is registered and has a Tangaza account, the Diaspora will also be able to access the Nairobi Stock Exchange (NSE) and trade shares and bonds in real time (instantly) both on their mobile phones and online as long as the NSE is open.
5. Kenyans in the Diaspora who invest in Tangaza will earn dividends
6. Kenyans in the Diaspora will get an opportunity to be Tangaza agents abroad.
Central Bank of Kenya (CBK) has given the consent to establish a Commercial Bank in Kenya under the name Metropolitan Bank under Chapter 488, The Banking Act of the Laws of Kenya. The Metropolitan Bank, through an agreement with Diaspora Investment Management Ltd (DIML), has reserved 20% share holding in the company exclusively for DIML to avail the Kenyan Diaspora.
Metropolitan Bank , other than the normal Commercial Banking services it shall offer in Kenya, will commit significant resources to to have special services addressing Diaspora Banking needs. To that effect, Metropolitan Bank is offering a 20% Shareholding opportunity to members of the Diaspora through issuance of 760,000 shares to be sold to Diaspora individuals or group members.
This will be done through a private placement transaction on a first come basis.
The investment opportunity worth considering, is that, the Diaspora send home over and above USD 1.5 Billion. This money lands in Commercial Banks in Kenya. What if the Diaspora invested in a commercial bank where they can bank their own money? Would A Commercial Bank not be an opportune investment venture?