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The Fund Asset size increased from Shs17.65 trillion in July 2022 to Shs17.88 trillion in December 2022
Kampala, Uganda | JULIUS BUSINGE | The National Social Security Fund Uganda is on track to achieve its key performance targets for the Financial Year 2022/2023 after savers contributions and realized income grew by 22% and 17% respectively for half year as at end of December 2022.
The performance results were announced by the acting Managing Director Patrick Ayota at a press conference held in Kampala on Jan.25.
This development comes at a time when the former managing director of the Fund, Richard Byarugaba is being investigated by the Inspector General of Government (IGG) over allegations of corruption and mismanagement of the Fund.
Ayota hesitated to comment on issues regarding the investigations. He however said, the Fund’s good performance amidst the current noise in the market was a demonstration of good governance at the Fund.
According to the results, the half-year contributions collected by the Fund topped Shs786 billion, compared to Shs643 billion over the same period last Financial Year. This performance could have been supported by the full reopening of the economy compared to the same period before.
Meanwhile, realized income also topped Shs1.054 trillion in December 2022 from Shs900 billion over the same period last Financial Year, driven by higher interest rates on fixed income investments.
Ayota said: “This half-year performance, which is better than what we achieved over the same period in the previous Financial Year puts us in a very good position to achieve our 2022/23 targets. It also shows that our members – both employers and workers have trust in the Fund as their social security and savings partner.”
The Fund registered 2,078 employers and 67,277 contributors respectively over the last 6 months.
The Fund Asset size also increased from Shs17.65 trillion in July 2022 to UGX 17.88 trillion in December 2022. Although the rate of growth reduced compared to the same period last Financial Year, the reduction is attributed to increased benefits payout.
NSSF paid Shs712 billion over 6 months in December 2022 compared to Shs 364 billion over the same period in the previous Financial Year.
Ayota added: “The increase in benefits payments does not surprise us because this is the trend in the first half of the year because qualifying beneficiaries tend to wait for interest rate declaration at the end of September every year before they submit benefit claims. That is why in the month of October and November following interest declaration, we paid Shs217.9 billion and Shs208.6 billion respectively.”
Commenting on the planned initiatives to recruit savers from the Small and Medium Enterprises (SME) and informal sectors, Ayota said that the Fund is ready to fulfill its mandate following presidential assent to the National Social Security Fund (Amendment) Act 2022.
He said that the Fund will roll out a recruitment plan after the issuance of the regulations by the minister of Gender, Labour, and Social Development.
Ayota said, the Fund’s plan revolves around two strategic pillars – creating the capacity of Ugandans to save and creating a willingness by Ugandans to save.
“That will enable us to achieve the overriding national goal of expanding coverage of basic social security in Uganda from 1.3m members with balances in NSSF to 15m Ugandans by 2035,” Ayota said, adding “a capacity to save will also tackle the strategic challenge of ensuring compliance with the NSSF Act as amended.”
