Uganda: NSSF Reveals Plan to Invest in Infrastructure, Awards Firms

Posted on :Friday , 23rd October 2015

Kampala — National Social Security Fund (NSSF) will invest in public infrastructure and small and medium enterprises, managing director Richard Byarugaba has revealed.

Speaking at the annual members meeting in Kampala yesterday, Mr Byarugaba told members that the development is included in a 10-year strategic plan to diversify the savings in the fund.

Currently at Shs5.8 trillion worth of investments, the fund wants to grow this to Shs20 trillion by 2025, Mr Byarugaba said.

That would mean the fund has to grow by Shs1.5 trillion each year, up from Shs1.2 trillion. Among the plans is to deal with some of the stalled real estate projects, investment in infrastructure and setting up a private equity firm to invest in SMEs.

Previously, NSSF has stayed away from big-ticket government projects such as roads because they did not generate their own income. The fund has often been criticised for not participating in government projects.

"The Public-Private Partnership Act will enable the private sector to get involved in public sector projects. For that to happen the owners, sponsors of the projects need to build a financial structure. That financial structure (for instance, a road toll) has to raise money to be able to raise the debt-holders and equity-holders such as ourselves. The only way they can do that is by generating a cash flow," Byarugaba told the Daily Monitor on the sidelines of the general meeting.

The flagship project of the PPP Act is the 77-kilometre Kampala - Jinja Expressway, which Ugandans will be paying to use. Mr Byarugaba hinted at the possibility of NSSF investing some of the funds in this project.

NSSF has its investments in real estate, government securities, listed and non-listed companies. In 2014/15, the investments made income worth Shs583b, up from Shs494bn in 2013/14.

Byarugaba also told members that they would invest in small and medium enterprises (SMEs) that are ready to open their books for disclosure to the public, allow NSSF to have shares and a seat on the board.

Companies awarded:

Compliant employers were also awarded under different categories, and they included Nile Breweries emerging winner of the Gold Category, with Airtel Uganda as the first runner up. National Water and Sewerage Corporation Kampala office was awarded best employer of the year under the Silver category, with International School of Uganda as the first runner up. Eskom Uganda and Wagaga Limited won bronze.

Other companies awarded include, Uganda Breweries, Victorious Education Services, Uganda Christian University, Infectious Disease Institute and Kisiizi Hospital, among others.

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