The National Social Security Fund (NSSF) has announced a remarkable 15% increase in revenue, earning a record-breaking UGX 2.53 trillion for the financial year ended June 30, 2024.
According to NSSF Managing Director Patrick Ayota, the growth was driven by significant 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.”
“The Ugandan economy recovered and recorded a 6% growth in GDP, inflation remained under control, regional stock markets recovered and the interest rates slightly increased,” Ayota added.
The Fund’s total assets stood at UGX 22.13 trillion, up 19% from UGX 18.56 trillion in FY 2022/23. Its investment asset allocation consisted of 79.2% fixed income, 13.1% equities, and 7.7% real estate. Contributions from members increased by 12.2% to UGX 1.93 trillion, while total revenue rose by 15% from UGX 2.2 trillion in FY 2022/23. The cost of administration was reduced from 1.02% to 1.00% of total assets.
Regarding the decrease in benefits paid out, Ayota explained, “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.”
Benefits paid out by NSSF decreased from UGX 1.199 trillion in FY 2022/23 to UGX 1.120 trillion in FY 2023/24. This reduction was attributed to a drop in the number of people claiming benefits, from 48,115 to 44,250.
NSSF has embarked on an ambitious strategy, Vision 2035, aimed at growing the Fund to UGX 50 trillion, extending social security coverage to 50% of Uganda’s working population, and achieving 95% service satisfaction.
“We are committed to ensuring the safety and growth of our members’ savings,” Ayota emphasized. “Our vision is to be the leading social security provider in Uganda, and we are working tirelessly to achieve this goal.”
The NSSF’s impressive financial performance is a testament to its commitment to providing secure and profitable investment opportunities for its members.
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