The National Social Security Fund (NSSF) has announced an 11.5% interest rate for savers for the financial year 2023/2024. The announcement was made during the NSSF's 12th Annual Members Meeting held on 26th September 2024. The Fund’s management revealed ambitious plans to grow its assets to Shs50 trillion and extend coverage to half of Uganda’s population by 2035.
While delivering the announcement, Finance Minister Matia Kasaija commended the Fund for its strategic investment approach. "NSSF is investing in the right assets. Our investments are focused on fixed income, real estate, and equities," Kasaija said, outlining the Fund's portfolio distribution, which consists of 79.2% treasury bonds, 13.1% equities, and 7.7% real estate. He commended the NSSF for its efforts in maximizing returns for its members through strategic asset allocation.
The 11.5% interest rate is expected to boost the morale of savers, following a year in which the Fund paid out Shs1.1 trillion in benefits. Notably, mid-term benefits, which allow members aged 45 and above with 10 years of contributions to access part of their savings, saw a decline from Shs272.2 billion to Shs176.6 billion, reflecting a growing trend of members opting to save for the long term.
It should be noted that NSSF declared a 10% interest rate for savers for the fiscal year 2022/2023 compared to 9.65% for the year 2021/2022.
"Vision 2035" and Future Plans
Ayota Patrick, the Managing Director of NSSF, reiterated the Fund’s commitment to creating value for its members. "Our focus is on maximizing earnings and creating a culture of saving," he said. Ayota emphasized that NSSF benchmarks its performance against global pension funds and noted that NSSF Uganda is ranked highly for its strategic investments. "We want to make saving a way of life and ensure members see the value in the long term," Ayota added, outlining the Fund's "Vision 2035" which focuses on expanding job opportunities and increasing member savings.
Financial Transparency and Governance
The Auditor General, Edward Akol, delivered an unqualified opinion on the Fund's financial statements. "In my opinion, the financial statements present a true and fair view of the financial position of the Fund as at 30th June 2024," Akol stated, affirming NSSF's adherence to international financial reporting standards. This endorsement further strengthens confidence in the Fund’s governance and financial management practices.
