“NSSF Net worth increasing steadily”: Surely...

NSSF Chairman of the Board of Trustees Prof. Samwel Wangwe.

Christian Gaya

The net worth of the Fund has increased by 13.60% from Tshs.2, 585.92 billion reported in year ended June 2013/2014 to Tshs.2, 933.97 billion recorded in year ended June 2014/2015.

According to the NSSF Chairman of the Board of Trustees Professor Samwel Wangwe who told the members and other stakeholders of the Fund during the 6^th stakeholders annual general conference held at AICC Arusha that took place from 20^th-21^st October 2016, that the net worth of the Fund available for the benefits payment increased by 13.60% from Tshs.2, 585.92 billion reported in year ended June 2013/2014 to Tshs.2, 933.97 billion recorded in year ended June 2014/2015. 

He further mentioned that, contribution collection for the year ended June 2015 increased from Tshs548,471.60 million to Tshs605,090.41million marking an increase of 10.4%.

“I am also pleased to inform that the Fund has moved a milestone in services delivery as a Certified ISO 9001:2008 member” the Board chairman narrated.

The Fund has made a great achievement and recorded a remarkable performance. The total assets of the Fund has increased fromTshs.2,759,554.54million to Tshs.3,3130,993.65 million marking an increase of 13.6%.

Prof Wangwe said that tireless efforts were done by the fund in ensuring that NSSF becomes the first choice for new employee or self employed individual. 

From those efforts membership size with the Fund increased from 567,109 recorded in the year ended June 2013/14 to 665,710 recorded in year ended June 2014/15 which is equivalent to an increase of 17.39%

Moreover, a total of 88,103 members were paid different benefits amounting TZS 357,672.67 million. Therefore, during the period under review the Fund increased benefit payment by 3.74% from Tshs.357.67 billion as compared to Tshs.344.78 billion paid in year ended in June 2013/14 

In widening up its financial base, the Fund continued to undertake commercially profitable investments whereby during the period under review, the investment portfolio of NSSF increased by 13.64%.

He said that NSSF continued to abide to the five principles of investment which are safe, yield, yield, liquidity, diversification and socio-economic. Through these principles of investment, the fund increased its investment portfolio by 13.64%. As a result Fund’s investment portfolio increased from Tshs.  2,403.61 million recorded in 2013/2014 to Tshs 2,731.48 million in 2014/2015

As at 30^th June 2015, the Fund’s portfolio mixture include loans to government projects corporate borrowers and fund members, real estates, equity, Government securities and fixed deposits.

Professor Wangwe  said that, it is worth noting that investments made by the Fund contributes significantly in the social and economic development projects which ultimately results in expansion of production, generation of more jobs and income.

During the financial year 2014/15, 38% of Fund’s portfolio was held in a loan portfolio. These loans were issued to government, corporate institution and members through their co-operate unions. 29% of the portfolio was ties up in real estate investments and 19% on equity in both listed and unlisted companies and joint venture investments.

“Apart from supporting social economic activities, investments undertaken by fund are strategically made so as to generate sufficient income to meet administrative costs and improvement of benefits payable to qualifying members and strengthen the financial base of the fund for future financial obligations” The Board Chairman told the participants.

During the year ending on 30^th June 2015, income generated from fund’s investments decreased by 2.15% as compared to an increase of 3.24% recorded in the previous year .The decrease in investing in fixed deposits and government securities whereby these portfolios has decreased by 70.2% and 7.15% respectively as compared to the previous year 2013/14.

He told the participants that, deliberate efforts are undertaken by the fund to ensure that investments are directed towards government securities and fixed deposits portfolios to ensure maximum return is obtained.

The National Social Security Fund (NSSF) is registered in Tanzania under the National Social Security Fund Act, 1997 as a registered contribution scheme and administered in Tanzania.

NSSF was established by the Act of Parliament No.28 of 1997 to replace the defunct National Provident Fund (NPF). NSSF is a compulsory scheme providing a wider range of benefits which are based on internationally accepted standards.

The Fund is the leading social security in terms of membership base in the country and in terms of offering a wider range of benefits which are based on internationally accepted standards in East and Centre Africa.