The Independent Uganda: You get the Truth we Pay the Price
Reasons behind housing projects
Byarugaba said, the real estate project would provide a good gross return to the members in line with the Fund’s minimum commitment to preserve the value of their savings by paying 2 percentage points above the average 10-year inflation.
NSSF’s real estate project would contribute to a reduction of the residential housing deficit in Uganda, which currently stands at 2.1m housing units.
However, NSSF executives agree with experts that, the key challenges in real estate development, remains the cost of developing the basic infrastructure including land, roads, telecom, water and electricity.
All these increase the fixed costs of real estate development and affect the price of the final house to the consumer.
COVID-19 dark cloud
“For every dark cloud, there is a silver lining,” reads part of the transparency report published recently, adding that with the outbreak of the global pandemic of Covid-19, the Fund ensured that slightly over 80% of staff were able to work from home while the remaining 20% commuted to the office only for crucial functions.
This, the executives said, has demonstrated resilience and provided the Fund with an advantage from an Information Technology (IT) perspective.
The Fund, being customer centric, pioneered a mechanism for employers to defer payments until their cash flows stabilise, with many employers opting in with more than Shs69billion being deferred in collections.
Regulatory concerns
During the reporting period, stakeholders remained divided in some changes of the NSSF Act that seeks to bring about changes in management of the Fund’s assets.
The biggest concern was mid-term access of their savings, with some members supporting the idea that they should have access to some amounts of their saving to meet their needs.
However, those opposing the move said, it would partly weaken the NSSF investment base but also expose the beneficiaries to the danger of wasting their hard earned money.
Last February, Parliament passed the National Social Security Fund- NSSF Bill 2019, giving Ugandans over 45 years and those who have saved for 10 years to access 20% of their savings.
However, President Yoweri Museveni, who is supposed to assent the bill into law, said during this year’s Labour Day celebrations on May 01 that mid-term access would reduce the amount to be reinvested to grow member’s savings. He, instead, urged stakeholders to further discuss the implications of mid-term access.
Board in suspense
In his message delivered in the NSSF Integrated Report for 2020, Patrick Kaberenge, the Fund’s Chairman Board of Directors says that review of the law has certainly not made life easy for the Board as it has been slow and kept them in suspense in relation to the right direction to follow.
“Requests for midterm access are put before us but we have no answer because of the pending law,” Kaberenge said.
Nevertheless, NSSF executives say NSSF Amendment Bill has some clauses that would give the Fund an opportunity to increase coverage including the informal sector, collections and returns through limiting access to benefits by raising the retirement age to 60 years.
However, they say that customer demands such as mid-term access continue to affect the Fund’s brand and purpose.
Going forward
To deliver on its promise – strategy 2020-25, the Fund is adapting to the new normal and changing ways of work and leveraging on the current capability of IT systems to deliver value to its stakeholders.
The executives say the set targets are achievable and all the necessary tools are in place to enable execution of the strategy.
With most core functions of the Fund moving to online platforms that are automated, high speed, safe, reliable, cheaper, enabling self-service, the Fund will be able to pay the members within less than one week, satisfy customers and staff to the desired levels as well as grow its asset base to the Shs20trillion mark.
The Fund’s executives said this year’s focus will be to support staff to serve members universally, implementing all core internal projects with minimal or no shift in timelines.
Key facts and figures
The Fund’s asset allocation is; real estate (7.69%), equities (15.06%) and fixed income (77.25%).
Its outlook for 2025, has four major strategic outcomes; happy and satisfied members as measured by a customer satisfaction rate target of 95%, up from 73% in 2015; growth of the Fund to a Shs20trillion, which is a 26% year-on-year annualised growth from Shs5.5 trillion in 2015; efficient processes epitomised by a target of paying benefits within one day, from 15 days experienced in 2015.
Management also eyes an engaged staff who are delighted to work at the Fund as measured by a staff satisfaction rate target of 95%, up from 74% in 2015.
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