Since its establishment in 1985, the National Social Security Fund (NSSF) has grown to become a major force in Uganda’s economic transformation. Governed by the NSSF Act (Cap 230), the Fund operates within a dual mandate: to provide social security services to Ugandans while also driving the nation’s socio-economic growth. Through its strategic investments across various vehicles—such as real estate, fixed income, and equities—NSSF has not only offered a safety net for workers but has also played a crucial role in elevating Uganda’s profile on the global stage.
NSSF’s Role in Uganda’s Development
Over the years, NSSF’s impact on the economy has been substantial. With assets exceeding UGX 22.13 trillion as of June 2024, NSSF Uganda stands as the largest fund in the East African region. Its rapid growth in assets under management are attributed to its diverse range of strategic investments throughout the region which not only stimulate economic growth but also create jobs and support government projects. Worth noting, the Fund currently contributes about 11% of Uganda’s GDP.
Local Investments
In addition, the Fund has made significant investments directly in local companies– both listed and unlisted, amounting to UGX 1.53 trillion. These investments in addition to supporting the companies, also generate employment opportunities for Ugandans.
Real Estate
The real estate sector is another key area where NSSF has made its mark, with investments surpassing UGX 1.54 trillion. The Fund’s investments in housing aim to address the country’s growing demand for affordable homes, a critical issue driven by rapid urbanization. The Fund’s landmark real estate project, the Solana Lifestyle and Residences in Lubowa, is a prime example of NSSF’s impact. This 600-acre self-sustaining satellite city will be East Africa’s largest housing development upon completion, with over 2,750 residential units, including apartments, townhouses, bungalows, and villas. These real estate projects have created thousands of jobs and contributed to local economic growth by using locally sourced construction materials from local suppliers.
Mobilizing Domestic Savings
Additionally, the Fund plays a leading role in mobilisation of domestic long-term savings that have enabled the country to undertake several capital investments. NSSF currently holds about 24% of government of Uganda’s domestic debt. It is also among the top direct taxpayers in Uganda, contributing over UGX 163 billion annually to the Uganda Revenue Authority.
Promoting Financial Literacy
Core to its mandate, the Fund with a membership exceeding 2.3 million, promotes financial literacy among Ugandans, encouraging them to save for retirement and make informed financial decisions. Over 317,950 people have benefited directly from the Financial Literacy programme and over 3.3m people have been reached through targeted content.
Similarly, to further promote local companies, the Fund partnered with the Mastercard Foundation to introduce the NSSF hi-innovator program, investing UGX 20 billion to bolster Uganda’s entrepreneurship and innovation landscape. To date, 368 start-ups across various sectors including: agriculture, light manufacturing, technology, creative arts, education and digital economy have been supported. As a result, creating and sustaining over183,110 jobs.
Empowering Communities, one school at a time
Beyond the financial initiatives, Corporate Social Responsibility is a pivotal focus area for the provident fund, implemented with the aim of improving lives of the people in the community. NSSF focuses on four focal areas in its CSR framework: health, education, youth and disadvantaged persons. In the health and education sector, where its core focus lies on improving access to quality education, the Fund has refurbished over 68 classroom blocks, implemented sanitation improvement projects in 16 schools, benefitting over 18,620 students daily. Additionally, through the NSSF Career Expo, over 161,000 university student finalists have been trained in career planning, growth and entrepreneurship.
Strategic Achievements of the NSSF
In 2015, the Fund developed the 2015-2025 Strategic Plan, a roadmap through which it envisioned achieving key strategic goals such as growth in its asset base and customer satisfaction, among others. It is currently on course to achieve its strategic objectives by 2025, and even earlier in some instances. For instance, the Fund has had a steady growth of its assets under management. The Fund’s Assets Under Management (AUM) increased by 19.2% from UGX 18.56 trillion in the Financial Year 2022/23 to UGX 22.13 trillion in the Financial Year 2023/24 ahead of the 2025 target of UGX20 trillion. NSSF has consistently ensured safety and security of its members’ savings with a net return of more than 2% above the 10-year inflation average in line with its promise. Last financial year, the Fund declared and paid an interest rate of 11.5%.
Additionally, the integration of digital channels such as the NSSF Go App have made it seamless for members to access Fund services thereby improving the member convenience and experience.
Vision for Uganda’s Future
Looking forward, NSSF’s Vision 2035 outlines the Fund’s strategic outlook. By 2035, the Fund aims to grow its assets to UGX 50 trillion, extend social security coverage to 50% of Uganda’s working population, and achieve a 95% satisfaction rate in service delivery. This strategy is hinged on initiatives that will create the capacity and willingness to save. As the country progresses further in economic development, NSSF’s strategic initiatives, commitment to innovation, and future-focused vision will be integral in shaping the country’s economic landscape by diversifying in other areas, such as agriculture.
