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Atoms & Bits helps you learn about Tanzanian research and innovation. Our podcast features audio versions of roundups, case studies, and commentary not found in articles. Flora Benedict does the narration. <br/><br/><a href="https://anbpost.substack.com?utm_medium=podcast">anbpost.substack.com</a>
This audio article is also available at spotify and apple podcast
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You can also litsen via spotify and apple podcast
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Thankyou!
In this episode of Atoms and Beats, we covered the top five tech updates from Tanzania for the week of July 14–20, 2024. The highlights include:
1. AzamPesa partners with the Tanzanian Postal Corporation to transform post offices into digital financial service points.
2. Smart Lab launched a new professional education program offering courses in various fields.
3. Neurotech announced its 10th AI meetup.
4. Sahara Ventures has reintroduced its Founders School program to support aspiring entrepreneurs.
5. The Launchpad Tanzania received government approval to establish Digital Skills Clubs in schools nationwide.
Tune in for more details on these important steps in Silicon Bongo.
Listen on Apple Podcasts:
Listen on Spotify:
Grayson has conducted technical audits for over 60 financial and educational technology startups.
In this episode, he reveals how cutting corners during coding leads to higher long-term costs for African companies and established organizations that develop digital products.
I have narrated:
* Common challenges faced by non-technical founders
* The true cost of cutting corners in software development
* Best practices for managing software projects
* The importance of clear requirements and realistic timelines
* Why the "full-stack developer" myth can be dangerous
Read the original opinion: https://anbpost.substack.com/p/lessons-from-60-tanzanian-tech-startups?r=2osh23.
Listen on Spotify: https://open.spotify.com/show/0Md9DhFD79flNvtWDT4XzW
In this episode of The Atoms & Bits Audio Experience, we explore last week’s updates from Tanzania's growing tech scene.
We start by celebrating the release of SmartDarasa 2.0, an improved learning platform with new features and AI-powered experiment assistance. Then, we talk about the first cohort of the Mastercard Foundation EdTech Fellowship, which chose 10 promising Tanzanian startups to get mentorship, business advice, and capital.
We also highlight NALA's recent successes, like making more money than ever, adding payment reminders, and its Rafiki API for business-to-business payments. Lastly, we share some exciting job openings in Tanzania's tech industry.
Listen in to stay up-to-date on the people and companies driving innovation in Tanzania.
You can also listen to the narration on Spotify or Apple Podcasts.
Thanks.
Image credit: AKDN / Akbar Hakim.
For detailed weekly roundups, please visit https://anbpost.substack.com/t/roundup.
The Atoms & Bits Audio Experience is also available on Spotify and Apple Podcasts.
Thank you for listening!
Welcome to the Atoms & Bits product review series. I'll be sharing my experiences with Tanzanian software and hardware I use regularly, or am excited to try out.
Today's focus:
* Understanding government-backed investment funds. Their Risks vs. potential gains.
* Finding the fund that aligns with your financial goals.
* Why investing might be a smarter move than traditional savings.
Overall, this review is divided into 5 sections with a total of 1495 words. That's 6.2 minutes of silent reading time. (Click here to download the PDF version.)
If you prefer multitasking, you can listen to Flora Benedict's narration in the Atoms & Bits Audio Experience podcast.
I. THE PROBLEM
Like thousands of Tanzanians, I park my extra money in a CRDB Bank Savings Account. Given the presence of 62 financial institutions in Tanzania, it is reasonable to assume that more than a million residents use the same product. It could be from a commercial bank, a microfinance company, or somewhere else.
According to the Financial Sector Deepening Trust (FSDT), 47% of Tanzanians reported saving in 2023, up from 43% in 2017 (FinScope Tanzania 2023, p. 61).
Of Tanzania's 30 million or so savers, 84% save to manage cash flow, 10% save for investment, and 6% save for asset building. FinScope 2023 also found the primary reasons for saving are living, non-medical emergency, educational, and medical expenses.
Only 18% of Tanzanians who saved in 2023 did so through commercial banks. The remaining 47% of savers kept their cash at home. The other 27% saved in mobile money accounts. 11% relied on savings groups, while 1% used Savings and Credit Cooperatives (SACCOs).
In 2017, 11% of those who saved did so in a bank account, 12% in a non-bank formal account (i.e., with a microfinance institution or M-pesa), 14% informally (eg., through a savings group), and 14% at home (Savings at the Frontier, 2017, p. 1).
As a result, my first product review is only relevant to those who already save money in banks (roughly 5.4 million people nationwide).
It is especially useful for Tanzania's 6% of savers (about 1.8 million individuals) who save to invest.
II. THE BIGGER PROBLEM
Traditional bank savings accounts offer greater security (compared to keeping money at home or using a mobile wallet). But the interest rates are often disappointingly low. This means your money grows very slowly, sometimes even lagging behind inflation. In fact, all bank products generate low returns when compared to alternatives.
Take CRDB, Tanzania's largest bank, as an example. Its savings account - which I use - offers up to 6% interest, while its business fixed deposit accounts provide up to 5%. Its Malkia Account for women and the Busara Account for shareholders on the Dar es Salaam Stock Exchange (DSE) also return 5%.
So, if you deposit TZS 1 million into the bank’s savings account with a 6% interest rate:
* You could earn TZS 60,000 in interest per year.
* You could earn about TZS 5,000 in interest per month.
With the same TZS 1 million deposited into a Malkia or Busara account, you could earn TZS 50,000 annually or about TZS 4,166 monthly.
As of March 2024, Tanzania's economy had an inflation rate of 3%. The real value of your interest earnings will be slightly reduced due to inflation.
That's why, recently, a friend talked me into abandoning those accounts and trying UTT AMIS.
If you're looking for a way to potentially outpace inflation and reach your financial goals faster, this new product might be worth exploring.
Defocusing from my savings account meant investing in mutual funds, something I knew nothing about.
In addition, I was clueless on what fund to choose, so I began researching.
Below is what I found out, and I hope it helps if you're in a similar boat.
III. WHAT IS UTT AMIS?
A unit trust is a type of collective investment (or mutual funds collection) that allows investors with similar investment goals to pool their funds into a portfolio of securities or other assets.
In 2013, the government split the Unit Trust of Tanzania (which was established in 2003) into three separate organizations. These are: UTT AMIS (manages investments), UTT MFI (for small-scale lending.), and UTT PID (for larger development projects).
In that light, the Unit Trust of Tanzania (UTT) Asset Management and Investor Services (AMIS) is an 11-year old public investment company that puts together billions of shillings from over 90,000 individuals and uses it to buy a variety of asset classes. It operates under the Ministry of Finance.
UTT AMIS invests in:
(i) Equities. These are shares of ownership in companies that are listed on a stock exchange, such as the DSE.
(ii) Fixed income securities. Also known as loans made to governments or companies that pay a fixed interest rate over time.
(iii) Money market instruments. Examples include treasury bills (short-term loans to the Bank of Tanzania), commercial paper (debts that help large companies meet their immediate cash needs), and repurchase agreements (the sale of investments that an institution buys back at a slightly higher price after 1-2 days or up to two years).
IV. CHOOSING THE RIGHT UTT AMIS FUND
This government-backed platform lets you invest in various mutual funds. That way, you can earn higher returns than your savings account or group. Naturally, it involves some risk, but it's a step towards taking control of your financial future.
The entire investment process is managed through a secure mobile app. Thus making it easy to invest, add funds, and monitor your gains.
UTT AMIS offers six schemes aimed at different needs. Some prioritize safety, while others focus on growth potential, with varying levels of risk.
Let us take a look.
1. Bond Fund
This is the safest option. It prioritizes the safety of your capital by investing primarily in low-risk government bonds and some corporate bonds.
Returns are usually modest (around 12.3% in 2023). But it's perfect for conservative investors at all income levels who want a better alternative to savings accounts. It's also suitable if you need predictable income.
The lowest investment amount is TZS 50,000. Higher minimums apply if you want monthly/semi-annual income distribution.
2. Umoja Fund
It is a good starting point for Tanzanians looking to invest in a combination of stocks (shares in public companies) and bonds (lending money to the government or corporations).
The fund seeks to provide a medium to long-term balance of income and capital appreciation (increase in the value of your investment). It has a moderate risk level because it includes stocks whose values fluctuate depending on market conditions.
Umoja is accessible, starting at just TZS 10,000 for the initial investment. However, the Umoja Fund doesn't offer regular income payouts. Profits are reinvested to further grow your investment.
It is best for investors who want a chance at higher returns than the Bond Fund offers.
3. Jikimu Fund
It provides a similar balanced approach as Umoja but with a key difference in income distribution.
You can choose plans that pay out income quarterly, annually, or reinvest your earnings (starting from TZS 5,000) for even more growth. Jikimu requires an initial investment of TZS 2 million for the quarterly plan and TZS 1 million for the annual plan.
The fund also has a moderate risk level. Similar to Umoja, it invests in bonds for stability and a selection of DSE-listed stocks for capital increase.
As a result, Jikimu is ideal for investors who want some cash flow while also meeting long-term financial goals.
4. Wekeza Maisha Fund
Wekeza seeks long-term growth of your money while providing life insurance, accident, and disability benefits.
It requires a 10-year commitment with a minimum investment of TZS 1 million. The fund has options for regular monthly, quarterly, or yearly contributions.
Wekeza Maisha’s risk level is moderate since UTT AMIS will invest most of your deposits in stocks.
It is worth considering if the insurance aspect is valuable to you. Generally, I think it suits those with higher disposable income.
5. Liquid Fund
Liquid, like the Bond Fund, is easily accessible and low-risk.
It offers competitive returns (12.5%, or twice the interest rate of bank savings accounts in the previous year).
Easy access to your surplus cash makes it different from the other schemes.
The fund requires a minimum initial investment of TZS 100,000. It’s best for those needing short to medium-term high-gain savings.
6. Watoto Fund
It's goal is long-term capital growth through a mix of stocks and bonds.
It has a moderate risk-level due to the inclusion of stocks.
Watoto has a a low entry point of TZS 10,000 initially. Investments are made in the name of a child up to 18 years old. And funds are accessible as they grow older.
It is perfect for parents and guardians who wants to build a financial foundation for a child's future goals like higher education or starting a tech startup.
Thanks for reading Atoms & Bits! Subscribe for free to receive new posts and support my work.
V. IMPORTANT REMINDERS
* Always visit the UTT AMIS website for the most current return rates and details about each fund.
* Choose the fund(s) that align with how much risk you're comfortable taking.
* UTT funds are for marathon objectives. So I recommend you keep separate emergency savings.
* If you have a complex financial situation, consult a registered advisor for customized recommendations.
You can expect to hear from me again, either in the next roundup of Tanzania's innovation ecosystem or in another product review! My goal is to help you make better decisions in your identity as both an investor and consumer.
Take care.
Welcome to This Week in Tanzanian Tech [Apr 21-27] narrated by Flora Benedict.
1.
EdTech startup ChemCheemi has launched Tanzania's first audio-based learning platform designed for primary schoolchildren ages 4–14.
Its hardware and software system helps children learn important skills like reading (letter sounds), math (through counting), and creative thinking (via STEM activities) in a fun and interactive way.
The CheemiPlayer is currently available for purchase by parents in Mwanza City.
2.
Seede XR (a startup founded in December 2022 by the lead developer at OnaStories Group) has announced the development of a new mixed-reality chemistry lab experience. This simulation prototype allows students to safely perform experiments like volumetric analysis using digital versions of lab equipment like burettes and pipettes in a real-world setting.
It is designed to be a more accessible and engaging way for students to learn chemistry concepts compared to traditional labs. Seede’s flagship product, called “C-Section VR Simulation,” gives medical students and experts a risk-free way to practice complex surgical procedures.
Its realistic, immersive environment provides valuable hands-on experience for those training or operating in Africa, where surgical equipment is limited (Oosting, R.M., et al., 2019).
3.
The 7th Sarufi Generative AI Meet-Up & Hackathon brought together coders interested in artificial intelligence (AI) that can understand and generate Swahili text.
Participants had the opportunity to work with recently developed large language models like Swahili Gemma and Swahili Llma, thanks to the work of Dr. Michael Mollel.
Teams competed to deploy those LLMs in new ways, such as answering legal questions. Event sponsors included PrisTech (an IT services provider), CameLabs (a Dar-based advanced research studio), and the Tanzania Data Lab.
This hackathon showcased the country’s growing expertise in AI and its potential to be used in Swahili, a language spoken by over 200 million people.
4.
Preparations for the 48th Dar es Salaam International Trade Fair (DITF 2024), also known as Saba Saba, are well underway. The event will take place from June 28th to July 13th at the Mwalimu J.K. Nyerere Trade Fair Grounds.
Organizers, including the Tanzania Trade Development Authority (TanTrade), report that 50% of exhibition spaces have already been booked with two months remaining. That impressive early response is attributed to strong promotional efforts by Tanzanian embassies and President Samia Hassan's recent international visits.
The DITF attracts businesses and investors from across Tanzania, East Africa, and globally. Over 3,500 local companies, 200 foreign companies, and representatives from 26 countries participated in the 2023 exhibition. Key sectors represented include agriculture, technology, manufacturing, construction, and energy.
5.
The Bank of Tanzania (BoT) has issued a new circular revising fees for outgoing interbank transfers, effective May 1st.
The circular caps these fees at a maximum of TZS 2,000, representing a significant reduction from the previous TZS 10,000 limit. This change aims to promote affordability and drive the adoption of a cashless economy.
While banks may see a drop in transaction-related income, the increased volume of transactions could potentially offset this loss. It may also lessen reliance on mobile network operator (MNO) transfers, which often incur higher fees.
6.
Tigo (which has a 27% telecom market share) and the state-owned Tanzania Commercial Bank (TCB) have partnered to launch Kikoba.
The new digital savings tool is designed for groups, including friends, family, and existing VICOBA (Village Community Banks). Kikoba aims to provide a secure, convenient, and transparent alternative to traditional savings methods.
Its key features include easy management of group savings (via Tigo Pesa’s USSD code, *150*01#). Members can track their contributions, withdrawals, and overall group balance at any time. All funds are stored securely in TCB accounts. The tool has cross-MNO compatibility, where members from different mobile networks can participate and contribute seamlessly (via the TCB partner menu, *150*21#).
Kikoba is similar to M-Koba, another digital group savings platform that TCB launched in partnership with Vodacom Tanzania.
The Tanzania Commercial Bank was founded as the Tanganyika Postal Office Savings Bank (TPOSB) in 1925.
7.
On April 27th, Tanzanian startup Larven, held its "DevOps Dive" hackathon at Binary Labs in Dar es Salaam.
The event was all about making software development faster and smoother. Participants worked in teams to solve real-world problems using DevOps, which are a set of practices that help developers and IT operations teams collaborate more effectively.
DevOps helps teams deliver new software and updates more quickly, so users can benefit from them sooner. It also streamlines the process of making changes to software. Thus reducing the risk of problems and delays.
Selcom sponsored this hackathon, indicating its commitment to empowering the Tanzanian tech community beyond providing payments infrastructure.
At the same time, the University of Dar es Salaam's network engineering club hosted a "NetOps" workshop.
NetOps is like DevOps, but focused on optimizing how computer networks function, especially in organizations.
These events show Tanzanian developers are looking for ways to improve efficiency in all aspects of technology.
Amanda is a wife. A mother. A blogger. A Christian.
A charming, beautiful, bubbly, young woman who lives life to the fullest.
But Amanda is dying, with a secret she doesn’t want anyone to know.
She starts a blog detailing her cancer journey, and becomes an inspiration, touching and
captivating her local community as well as followers all over the world.
Until one day investigative producer Nancy gets an anonymous tip telling her to look at Amanda’s
blog, setting Nancy on an unimaginable road to uncover Amanda’s secret.
Award winning journalist Charlie Webster explores this unbelievable and bizarre, but
all-too-real tale, of a woman from San Jose, California whose secret ripped a family apart and
left a community in shock.
Scamanda is the true story of a woman whose own words held the key to her secret.
New episodes every Monday.
Follow Scamanda on Apple Podcasts, Spotify, or wherever you listen.
Amanda’s blog posts are read by actor Kendall Horn.
