Safaricom expands mobile investment services with Ziidi money marketSafaricom expands mobile investment services with Ziidi money market
Safaricom, the Kenyan telecoms and mobile money operator, is expanding its M-Pesa investment services by launching the Ziidi money market fund in partnership with fund managers Standard Investment Bank and ALA Capital Limited.
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Safaricom, the Kenyan telecoms and mobile money operator, has announced the launch of the Ziidi money market fund (MMF) giving customers an option to invest and grow their wealth using M-Pesa.
Ziidi MMF enables Safaricom customers to earn interest by investing funds from their M-Pesa wallet into the Ziidi account.
"The interest earned is accrued to the Ziidi wallet daily – allowing the investor's money to grow and therefore generate more value," Safaricom said in a statement.
The operator said that since opening to the public in December 2024, Ziidi money market fund has attracted more than 450,000 opt-ins with over 2.85 billion Kenyan shillings (US$22 million) assets under management.
"Ziidi MMF is part of our continued efforts to diversify M-Pesa beyond payments and deepen financial wellness. 'Ziidi ni Ziidi' introduces the mindset that a little goes a long way, and any kind of growth is valuable. This empowers people to define prosperity on their own terms, and make wealth creation achievable to all," said Safaricom CEO Peter Ndegwa.
The fund is regulated by the Capital Markets Authority (CMA) and managed by a pool of fund managers including Standard Investment Bank and ALA Capital Limited.
"As we launch Ziidi MMF, we are making an invitation to every Kenyan, irrespective of their financial standing, to take the first step towards wealth creation. Together, let's embrace this responsibility and let Ziidi MMF be the catalyst for a future where every Kenyan has the means to wealth creation in their own way," added Ndegwa.
Customers can opt-in to Ziidi MMF on the M-Pesa app or via USSD and can invest anything from KES100 ($0.77) upwards.
While there is no maximum investment limit in Ziidi MMF, the daily M-Pesa transaction limit is KES500,000 ($3,872) and the per-transaction limit is set at KES250,000 ($1,935).
Ziidi MMF offers customers free deposits to the Ziidi MMF account and withdrawals into their M-Pesa wallets. Customers also have the option to lock their funds to avoid unplanned withdrawals.
Financial inclusion objectives
"By combining our institutional synergies with Safaricom, we hope to provide an attractive investment portfolio, which will, in turn, enhance financial inclusion among low- and mid-income earners in line with the government's bottom-up economic transformation agenda," said James Wangunyu, Standard Investment Bank's founder and managing director.
ALA Capital's chief investment officer, Sean Gichuru, said that the solution ensures that Kenyans can achieve their financial goals while enjoying the flexibility of managing their investments directly through their mobile devices.
In addition to the Ziidi money market fund, Safaricom said it plans to innovate and build more solutions that improve financial health and security for customers.
Safaricom's M-Pesa mobile financial services platform has been extremely successful for the operator and contributed $1 billion to its revenue in the financial year ended March 31, 2024.
Over the years M-Pesa has grown from a mobile money service offering peer-to-peer transfers and now offers a range of services including bill payments, loans, savings and business solutions.
Safaricom also launched M-Pesa in Ethiopia in August 2023.
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