The National Social Security Fund (NSSF) has announced that its investment income increased by 15 percent in the year ending June. The fund revealed that for the 2022/23 financial year, investment income rose from UGX 1.9 trillion to UGX 2.2 trillion. This increase indicates higher returns for its members during this period.
Over the past four years, NSSF has seen an average annual increase in income of Shs350 billion. It has grown from UGX 891 billion in the 2018/19 financial year to UGX 1.47 trillion in 2019/20. Additionally, the fund experienced an increase in revenue growth to UGX 1.84 trillion in the 2020/21 financial year, thanks to diversified investment strategies.
During the annual media roundtable, Mr. Patrick Ayota, the Managing Director of NSSF, attributed this growth to increased earnings from interest income, which grew from UGX 1.79 trillion to UGX 2 trillion, as well as dividend income, which increased from Shs84 billion to Shs139 billion. Income from real estate projects also saw a slight increase, rising from UGX 13.4 billion to UGX 14 billion, while UGX 16 billion was earned from other sources.
Despite challenging economic conditions in Uganda and the region over the past financial year, Mr. Ayota emphasized that the fund remained profitable due to strategic asset allocation. He acknowledged that the value of stock markets in Uganda and Kenya had decreased, and long-term bond yields had also fallen, putting pressure on the fund’s performance.
During this period, members’ contributions increased by 15.4 percent from UGX 1.49 trillion to UGX 1.199 trillion, resulting in the fund’s assets reaching Shs18.58 trillion. Mr. Ayota assured members that the fund would continue to provide a real return of at least 2 percentage points above inflation.
Equity markets across East Africa experienced volatility, with long-term bond and stock yields declining. In Uganda, the Uganda Securities Exchange local index decreased by 11.47 percent, while the Nairobi Stock Exchange all shares index dropped by 14.04 percent. In Tanzania, the index fell by 4.02 percent, and in Rwanda, it declined by 2.27 percent.
Mr. Ayota noted that the fund’s size increased from UGX 17.26 trillion to UGX 18.58 trillion, driven by increased member contributions, realized income, and effective cost management. The fund has ambitious plans, aiming to grow its assets under management to UGX 20 trillion by 2025.
Mr. Ayota also highlighted that the fund’s focus, under Vision 2035, is to reach the UGX 50 trillion mark in members’ savings, covering at least 50 percent of the working population.
