The National Social Security Fund (NSSF) has recorded a 15% increase in revenue raising UG,Shs. 2.53 trillion for the financial year ended June 30, 2024. This remarkable revenue generation has excited savers who are now expecting a higher annual return on their savings expected to be announced by the Minister of Finance next month.
NSSF Managing Director Patrick Ayota, explained that the increase in revenue was a result of increases in interest income, dividend income, and real estate income.
“The Fund’s performance mirrors an improvement in the overall investment environment in Uganda and across East Africa,” Ayota said during the NSSF Annual Media Roundtable. “Our analysis shows that although it was not without challenges, across East Africa, it was a better year compared to the Financial Year 2022/2023,” Ayota stated while further attributing the growth to good performing national economy which has recovered from the battering Covid 19 pandemic and associated lock downs -that has now recorded a 6% GDP growth , inflation remaining low and increased interest rates in regional stock markets.
The Fund’s total assets now stands at Ug.Shs. 22.13 trillion, up 19% from Ug.Shs 18.56 trillion last financial year 2022/23. The Fund’s investment asset allocation cis at 79.2% (fixed income,) 13.1% (equities), and 7.7% real estate. NSSF members contributions grew by 12.2% to Ug.Shs. 1.93 trillion- leading to the total revenue increase of 15% from Ug.Shs. 2.2 trillion in FY 2022/23 to Ug.shs. 2.5 trillion in the FY 23/24.. The cost of administration was reduced from 1.02% to 1.00% of total assets.
Ayota said that less members are taking out their savings because they trust the fund compared to other private run saving schemes . “People who qualify to withdraw their savings are opting not to because they trust the Fund to not only ensure safety but also growth in value of their money. This is a responsibility we do not take for granted,” he stressed.
Benefits paid out by NSSF decreased from Ug.Shs. 1.199 trillion in FY 2022/23 to Ug.Shs.1.120 trillion in FY 2023/24 because the number of savers taking out their savings decreased from 48,115 to 44,250 in the same period reporting.
NSSF has an ambitious strategy, Vision 2035, aimed at growing the Fund to Ug.Shs. 50 trillion and extending social security coverage to 50% of Uganda’s working population.
