DAR ES SALAAM: For many Tanzanians, retirement planning has long been viewed as a privilege mainly reserved for those in formal employment. However, a new investment initiative aims to change that perception by opening opportunities for workers across the formal and informal sectors to build financial security for the future.
The Foresight Private Retirement Fund (FPRF), a new retirement investment fund managed by CORE Securities Limited, has officially entered Tanzania’s financial market after receiving approval from the Capital Markets and Securities Authority (CMSA).
The fund is designed to provide a wider population with access to long-term savings and investment opportunities, particularly those who have traditionally been left outside conventional pension systems.
The official launch in Dar es Salaam brought together stakeholders from the financial services industry, capital markets sector, public and private workers’ associations, and members of the media. The event highlighted the growing need for Tanzanians to embrace a culture of saving and investing beyond relying solely on monthly income.
Speaking during the launch, capital markets expert Dr Ibrahim Mwangalaba hailed CORE Securities Limited for introducing the fund, describing it as an important milestone in expanding financial inclusion.
He noted that retirement preparation in Tanzania has historically been associated mostly with formally employed individuals, despite the fact that a large proportion of citizens earn their livelihoods through self-employment, entrepreneurship and informal sector activities.
“Through FPRF, the nation is gaining an inclusive platform that enables every Tanzanian, whether formally employed, self-employed, a business owner, or engaged in informal sector activities—to invest and prepare for the future with freedom, flexibility, and dignity,” Dr. Mwangalaba said.
He encouraged Tanzanians to develop stronger saving and investment habits, while also seeking professional advice before committing their money to investment products.
According to him, retirement security should not be considered a benefit available only to a small group of workers. Everyone deserves an opportunity to prepare financially for life after their productive years.
“Retirement planning should not be viewed as an opportunity reserved only for the few who are formally employed. Every Tanzanian deserves financial security and dignity after their productive years,” he emphasized.
The Chief Executive Officer of CORE Securities Limited, CPA George Fumbuka, explained that FPRF was created to complement existing social security systems by providing additional investment options for individuals who previously had limited access to retirement planning opportunities.
He acknowledged the important role played by established pension schemes such as the National Social Security Fund (NSSF) and the Public Service Social Security Fund (PSSSF), but said there was still a need for more flexible products that respond to the diverse financial circumstances of Tanzanians.
“While social security funds such as NSSF and PSSSF continue to play a significant role in improving the welfare of Tanzanians, FPRF has been designed to complement these systems by creating additional investment opportunities for individuals who previously did not have access to participate,” CPA Fumbuka said.
The fund received CMSA approval on April 28, 2026, under the Capital Markets and Securities Act and the Collective Investment Schemes Regulations of 1997. NMB Bank PLC has also been approved as the Trustee and Custodian of the fund.
FPRF has been authorized to raise up to 10 billion shillings through the issuance of 100 million investment units, with each unit initially valued at 100/-.
One of the fund’s key features is flexibility. Recognizing that financial needs differ depending on age, income and personal circumstances, the fund has introduced three investment plans targeting different groups.
The Youngsters’ Plan targets investors below 35 years and focuses on long-term capital growth. The Middle-Agers’ Plan is designed for individuals aged between 35 and 50 years, offering a balanced investment approach. The Seniors’ Plan targets those above 50 years and focuses mainly on government securities and other lower-risk investments.
CPA Fumbuka explained that a young worker starting a career has different financial priorities compared with someone approaching retirement.
“The financial needs of a young person who is just beginning their career are very different from those of someone approaching retirement. That is why we have developed different plans that enable investors to choose strategies that align with their age, income level, and long-term expectations,” he said.
Unlike some traditional pension arrangements that may require lengthy contribution periods before benefits are accessed, FPRF allows investors to access their funds after five years.
Investors will have options to receive their savings as a lump sum, regular pension payments, or a combination of both.
This flexibility is intended to accommodate different realities. Some retirees may need monthly income for household expenses, while others may require funds for healthcare, family obligations or business ventures.
The fund also allows individuals to start investing with as little as 10,000 shillings, making participation possible for people with different income levels. Investors can increase their contributions gradually depending on their financial ability.
After the five-year investment period, investors will also have the option to sell their units at the fund’s Net Asset Value (NAV), with payments expected within two trading days.
Investment access will be provided electronically through the CORE Securities Limited platform, selected NMB Bank PLC branches and licensed agents connected to the Dar es Salaam Stock Exchange (DSE).
Representing the Tanzania Teachers’ Union (TTU), National Executive Committee Member Nelson Mabula welcomed the initiative, saying its affordability, transparency and security make it attractive to workers.
He noted that the minimum investment requirement of 10,000 shillings provides an opportunity for many teachers and other workers to participate.
“We believe this is a beneficial investment opportunity for teachers and other workers, and as an institution we will encourage our members to take part so that they can benefit from this opportunity to build long-term financial well-being and prosperity,” he said.
As Tanzania continues to expand financial inclusion, FPRF represents a shift in the retirement conversation from waiting for retirement benefits to actively building financial security.
The message is simple: retirement planning is no longer only for those with office desks and monthly payslips. Whether one is a teacher, trader, farmer, entrepreneur or employee, preparing for tomorrow starts with decisions made today.