Faida Fund announces Sh3.24 billion dividend to shareholders for year ending June 2024

Dar es Salaam. Faida Fund has on Saturday, August 10, announced a Sh3.24 billion dividend to its shareholders for the year ending June 30, 2024.

The amount is equivalent to 12 percent of the return, having increased by two percent as compared to the 10 percent return recorded during the first eight months, ending June 30, 2023.

The Watumishi Housing Investment (WHI) board chairman, Mr Abdul Badru, announced this during the Annual General Meeting (AGM) held Saturday on August 10, 2024.

He said the announced return to investors was significant compared to the performance benchmark.

"The return achieved is in line with the progress in the financial market and exceeds the comparative benchmark of 9.7 percent," he said.

He explained that during the period ending June 2023, the net value of the Fund increased to Sh15.6 billion, and by June 2024, the net value of the Fund had reached Sh25.6 billion.

Mr Badru attributed the increase in the Fund’s value to good realised profits due to technological investment in the transaction processes, growing trust, and education on the benefits gained through mutual investment funds.

“The increase in the size of the Fund is also due to a growing number of investors. During a period ending June 30, 2023, there were 2,041 investors, as compared to 4,806 investors recorded in June 2024,” he said.

The increase in the number of investors is equivalent to 58 percent of investors who joined the Fund.

The Deputy Permanent Secretary in the President’s Office (Public Service Management and Good Governance), Mr Xavier Daudi, said some Tanzanians were lacking financial literacy.

Due to that, he underscored the importance of orientation and induction courses on financial issues during recruitment to enhance their literacy as they approached retirement.

"Faida Fund is a government effort to enable Tanzanians to earn an income," he said, commending the efforts that led to the realisation of profits since its establishment.

WHI chief executive officer Fred Msemwa said the Fund was established in November 2022 and officially began selling its units on January 1, 2023. He said generated income from investments made wasn’t subject to withholding tax.

"The Fund allows its investors to sell their units at any time after completing 90 days of the first investment, thus enabling them to access funds whenever needed," he said.

He noted that there were no entry, investment, or selling-out charges for units.