TOTAL collective investments administered by the Capital Markets and Securities Authority (CMSA) rose to approximately 4.4trn/- in December 2025, up from 701.46bn/- recorded in December 2021, a new report has indicated.

Nicodemus Mkama, the CMSA Chief Executive Officer, made this observation at the launch of a new collective investment scheme initiated by Africa Pensions Fund Ltd (APFL), a basket entity set up by social security institutions across Africa.

This initiative is meant to diversify pension funds’ investment portfolios as the value of investments under CIS grew by 65 percent during the past year, from 2.64trn/- in 2024 to 4.35trn/-.

The rapid CIS growth is drawing more savers and depositors into financial markets, as collective investment funds provide investors with a safe and affordable way to diversify their savings and participate in capital markets, once perceived as accessible only to high income earners, he said.

By pooling funds from multiple investors, CIS enables individuals to access investment openings that would otherwise be out of reach, as part of domestic savings mobilization to support long-term economic development, the report noted.

CIS-sourced investment increased by more than 520 percent over the past five years, reflecting rising public confidence in professionally managed and well-regulated investment funds, which offer stability and the potential for steady returns through diversified portfolios.

Introducing innovative investment products enabling people to invest with relatively small amounts of capital made it easier for people from all walks of life—including youth, women and other special groups—to access the capital market, he said.

“They are helping to promote financial inclusion and create opportunities for wealth building,” he declared, pointing out that to date, CMSA has licensed 26 collective investment schemes investing in financial and non-financial instruments.

The schemes are playing a vital role in deepening market participation, mobilising long-term savings and channelling funds into productive sectors, ultimately boosting personal incomes, he said.

The new collective investment schemes also support the national policy on economic empowerment by enabling citizens, including low-income earners, to pool resources and invest jointly in equities, bonds and money market instruments, he elaborated.

Citing examples of Treasury bills and government bonds, he said that such instruments typically require a minimum investment of at least 1m/-, beyond the reach of many small investors.

Through collective investment schemes, investors benefit from professional fund management, risk diversification and the potential for capital growth as reflected in rising net asset value (NAV), provided investments adhere to approved policies.

Expansion of collective investment schemes is supported by a strong legal and regulatory framework, as CMSA regulates the sector under the Capital Markets and Securities Act and the Collective Investment Schemes Regulations, providing guidelines on licensing, fund management, disclosure and investor protection, he stated.

CIS portfolio growth highlights their importance in building a strong, inclusive and resilient capital market while enhancing individual wealth creation as effective regulation, investor education and ongoing product innovation are pursued.

This is critical to sustaining growth, safeguarding investors and ensuring that the benefits of capital market participation reach all segments of society, he added.