Abdul-wakil H. Hafidh ZSSF Managing Director
Christian Gaya, Business Times, Friday October 31-November 6, 2014
The size of the Zanzibar Social
Security Fund (ZSSF) has increased
from TZS 110.72 billion to TZS 141.63 billion in 2012/2013. This represents a
growth of 28 percent which resulted from an increase in contribution, penalties
and investment income.
Since its establishment, the fund has been able to record a
steady growth. The Fund
has achieved all of these successes despite the challenges which include
inflation rate, a generous gratuity formula and an out of date ZSSF Act.
ZSSF was established
under the Zanzibar Security Fund Act No. 2 of 1998 subsequently amended by the
Zanzibar Social Security Fund Act No. 9 of 2002 and re-enacted by the Act No. 2
of 2005.
“During the year
under review, contribution income increased from TZS 19.81 billion in 2011/2012
to TZS 24.82 billion in 2012/2013. This increase of 25 percent was attributed
to membership and salary growth and improved compliance in remittance of
members' contributions” says ZSSF managing director.
The managing
director says that the investments portfolio of the Fund increased from TZS
101.24 billion in 2011/2012 to TZS 126.27 billion in 2012/2013 in which the
Fund earned a net investment income of TZS 16.07 billion in 2012/2013. This
represents the overall portfolio growth by 25 percent.
All investment decisions of the Fund
are governed by the investment policy which is periodically reviewed to cater
for the ever changing market conditions.
“The investment portfolio of the
Fund is made up of four major categories namely:- fixed income assets; real
properties; and loans ” says Hafidh
He elaborates
that investment in income asset represents treasury bills, government stock,
treasury bonds, bank fixed deposits, equity investments and call account.
“During the year
2012/2013, investments in fixed income assets were TZS 109.03 billion compared
to TZS 89.75 billion in 2011/2012. This represents 86 percent of the Fund's
total investment portfolio of 126.27 billion and 77 percent of the total fund’s
net value of TZS 141.63 billion respectively.
The total income
earned was TZS 15.22 billion in 2012/2013 compared to TZS 12.69 billion in
2011/2012 representing an increase of 20 percent, while the total income
includes net appreciations in fair value of investments of 2.35 billion
compared to 3.34 billion in 2011/2012” Hafidh says.
He furthermore,
says that investments in properties increased from TZS 4.62 billion in year
2011/2012 to TZS 5.14 billion at 30 June 2013. This represents 4 percent of the
Fund's total investment portfolio of 126.27 billion and 3.6 percent of the
total fund’s net value of TZS 141.63 billion respectively.
He adds that rent
income received from properties fell from TZS 295.73 million in 2011/2012 down
to TZS 274.78 million in 2012/2013.
Hafidh notes
that, during the year under review, loans were only provided to government
institutions increasing from TZS 6.85 billion in 2011/2012 to TZS 12.08 billion
in 2012/2013-and that loan investment constitutes 10 percent of the Fund's
total investment portfolio and 8.5 percent of the total fund’s net value of TZS
141.63 billion respectively.
Interest
received increased three fold from TZS 272.91 million in 2011/2012 to TZS
823.22 million in 2012/2013.
As a social security scheme has the
responsibility of registering eligible members, collecting and administering
members’ contributions, investing members’ fund and granting benefits to
members depending on different contingencies as specified in the Act.
“Our commitment is to deliver both
effective and efficient services which recognizes and value the importance of
our customers, we are dedicated to continuously developing and improving our
customer services by focusing on keeping our customer at the centre of all our
activities” the managing director says.
Hafidh notes due to these efforts and strategies
used, the Fund managed to register 2,927 new members during the year. This
represents a growing by 4.5 percent from 64,657 members in 2011/2012 to 67,584
members in 2012/2013.
He also says that
benefit payments to beneficiaries as at 30th June 2013 totalled TZS 6.50
billion paid out compared to TZS 4.75 billion in year 2011/2012.
“The Fund has
started to operate additional type of social security schemes since September
2012. This supplementary Scheme is Zanzibar Voluntary Social Security Scheme
(ZVSSS) which targets to involve both formal and informal sectors including people
living in the Diasporas abroad” says Hafidh.
“The Fund is
committed to accomplish its viable investments such as Uhuru Amusement Park,
Mapinduzi Squares and Mbweni estate” says Hafidh.
The managing director says that, further
says that ZSSF will be continuing with registration of members employed in the
informal sector to its newly supplementary scheme–Zanzibar Voluntary Social
Security Scheme (ZVSSS). ZSSF aims to collect and generate
funds that shall be sufficient to meet all benefit obligations of Zanzibar
Social Security Fund on a continuing basis.
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