ZSSF’s net assets hits TZS 380 bn .

An aerial view of portfolio affordable residential houses for Fund members and the general public as a whole at ZSSF Mbweni Estate area, in Zanzibar. 

By Christian Gaya

Zanzibar Social Security Fund (ZSSF) has announced that recorded a net asset of TZS 380.0 billion by the end of financial year 2018. 

According to Chairman of the Board of Trustees of ZSSF, Dr Suleiman Mohamed, the Fund...
has been continuing to perform well, recording a net asset of TZS 253.6 billion by the end of financial year 2016.

“In addition to that, the Fund has captured the informal sector which involves a large group of self-employed persons through Zanzibar Voluntary Social Security Scheme (ZVSSS),” he added.

The Chairman also said that, the Fund managed to increase its members by 0.5 percent to 75,303 from 79, 066, while the total number of registered employers rose from 1,280 to 1,382. 

“This increased number replicates the increase in contribution collection in which the amount collected increased by 11 percent to TZS 34.9 billion from TZS 31.5 billion collected in 2015/2016,” Dr Mohamed said.

He further elaborated that, this membership size reflects a growth of 5 percent and 8 percent in the total number of registered employee and employers as compared to financial year 2014/2015 when it was reported that a total of 75,303 members registered and 1, 282 employers was registered.

While the ZSSF Managing Director Sabra Machano said the fund’s total income grew by 20.2 percent from TZS 21.3 billion to TZS 25.6 billion in 2016, which was primarily due to a rise in investment income such as money investment, loan issued, treasury bonds, real estate investments and members’ contributions, while total assets under management hit TZS 380 billion as at June 30, 2018, indicating an impressive increase since its inception of the Fund.

In the financial year ended 2016 amount paid by the Fund to its members in the form of various benefits increased by 35 percent from TZS 12.3 billion in 2014/2015 to TZS 16.6 billion by June 2016.  “The increased in benefit payments was a result of new retirees and foreigners who left the country,” Machano said.

She further said that, annual contribution income rose from 31.5 billion in 2014/2015 to 34.9 billion in the period of 2015/2016 representing an annual growth rate of 11percent. This growth was due to increased membership size, increased compliance with ZSSF Act and rise in salary levels of on government and private sector. The compliance was also a result of increased enforcement efforts by the Fund which led to registered employers timely submitting employees’ contributions.

To ensure the sustainability of the above trend, Machano said, the Fund will further increase its efforts to educate both registered employers and members on the need to comply with ZSSF Act. 

Going forward for compliance enforcement she also said, The Fund will not hesitate to take appropriate measures to any employer who contravene the provision of the ZSSF Act.

“Such measures include penalty charges to employers delaying contribution for more than 15 days from the due date and other legal action against defaulters,” She mentioned.

During the period under review, the fund continued to register from informal and formal sectors as well as diaspora through its supplementary scheme known as Zanzibar voluntary social security scheme (ZVSSS).

“For the year ended June 30, 2016, the membership size of ZVSSS increased by 15 percent from 7,087 members in 2014/2015 to 8,165 members in 2015/2016. A total of TZS 201.6 million also was collected during 2015/2016 representing a 39 percent a rise over 2014/2015. During the same year under review a total of TZS 53.6 million was paid to ZVSSS members,” Machano revealed.

However at the end, the Board Chairman said that, despite the achievement accomplished by the Fund during the year 2015/2016, the Fund has been facing a number of challenges including depreciation of Tanzania shilling.

“Tax on the Fund’s income which hinders our efforts on increasing financial sustainability of the scheme, insufficient investment opportunities and low return on real estate,” he further added.