MICROCAPITAL BRIEF: Unit Trust of Tanzania (UTT) to Split into UTT Microfinance, UTT Asset Management and Investor Service (UTT AMIS), UTT Project and Infrastructure Development (UTT PID)

Unit Trust of Tanzania (UTT), a government-owned trust fund established in 2003, reportedly has decided to split into three separate firms: UTT Microfinance, UTT Asset Management and Investor Service (UTT AMIS) and UTT Project and Infrastructure Development (UTT PID) [1]. UTT AMIS will deal with pension and company listing consultations while UTT PID will focus on unlocking idle capital for real estate and infrastructure development. UTT Microfinance will provide micro-lending services. This separation will allow the firms to increase outreach in their respective areas with the aim of better serving the Tanzanian people.

In a statement attributed to UTT CEO Dr Hamis Kibola explaining the decision to split: “Over time, the fund’s activities had increased due to social and economic expansion, and the best way forward was to separate the fund and give each department total autonomy.” UTT AMIS will receive TZS 7.1 billion (USD 4.4 million) in capital, while UTT PID and UTT Microfinance will both receive TZS 5.3 billion (USD 3.3 million). The three firms are waiting for regulators’ licenses in order to become fully operational.

Financial information for UTT is not available.

By Meghan Gillis, Research Associate

[1] DailyNews: “UTT restructuring seeks to improve service delivery,” http://www.dailynews.co.tz/index.php/local-news/19713-utt-restructuring-seeks-to-improve-service-delivery

MicroCapital brief, July 9, 2013, “MICROCAPITAL BRIEF: CreditInfo Group’s Credit Reference Bureau Licensed in Tanzania,” https://www.microcapital.org/microcapital-brief-creditinfo-groups-credit-reference-bureau-licensed-in-tanzania/

MicroCapital brief, April 26, 2013, “MICROCAPITAL BRIEF: Unit Trust of Tanzania Launches UTT Microfinance, Offering Loans up to $30k to Individuals, $1.23m to Businesses,” https://www.microcapital.org/microcapital-brief-unit-trust-of-tanzania-launches-utt-microfinance-offering-loans-up-to-30k-to-individuals-1-23m-to-businesses/

MicroCapital brief, March 21, 2013, “MICROCAPITAL BRIEF: Bank of Tanzania (BOT) Licenses Dunn & Bradstreet, CreditInfo Tanzania as Credit Bureaus,” https://www.microcapital.org/microcapital-brief-bank-of-tanzania-bot-licenses-dunn-bradstreet-creditinfo-tanzania-as-credit-bureaus/

MicroCapital brief, February 5, 2013, “MICROCAPITAL BRIEF: National Microfinance Bank (NMB) of Tanzania to Establish 20 New Rural Branches,” https://www.microcapital.org/microcapital-brief-national-microfinance-bank-nmb-of-tanzania-to-establish-20-new-rural-branches/

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