By Silvia Nyambura
The National Social Security Fund (NSSF) projects it will grow its assets four fold to Ushs 20 trillion in the next 10 years. This will be achieved through a four pillared strategy centered around its customers and staff. According to the fund’s Managing Director Richard Byarugaba, this strategy to deliver customer experience will be based on customer service, people, technology and growth.
Speaking at the 3rd Annual Members Meeting held at the Kampala Serena today, Byarugaba said over the past 5 years, the fund has tripled its assets. With such tremendous growth in such a short period of time, he believes these ambitious projections are achievable.
“Our aim is to power a better life for our members. We will do this by building a strong financial base, innovation to come up with relevant products, excelling in business processes as well as provide a delightful place to work for our staff. In summary, over the next 10 years, fund objectives are to help it achieve growth in customer satisfaction to over 90%, provide members with a return of at least 2% above 10 year inflation, grow fund to Ushs 20 trillion and become best pension fund worldwide,” he said.
In addition, the fund plans to diversify its investment portfolio unlocking its real estate projects, go into Real Estate Investment Trusts (REITS) as well as roll out new products targeting the voluntary space for savings.
“We will engage property developers who will build houses which once complete we plan to buy from the developer and sell them to members. We are also looking at investing in a private equity fund targeting Small and Medium Enterprises (SMEs),” he added.
Also in the pipeline is a smart card which Byarugaba says is meant to improve experience. Customers can access their funds through their bank accounts and build loyalty points.
“The fund will optimize customer access through automated kiosks and e-channels as well as introduce agency collections where we have no physical presence. In improving our staff competence, we plan to enhance performance culture and create a talent pool and think tank,” Byarugaba said.
Also speaking during the event, Keith Muhakanizi the Permanent Secretary at the Ministry of Finance said, “Running a fund of this magnitude is not an easy feat. The Annual Members Meeting provides an avenue to ensure transparency and accountability of the fund. As government we shall maintain interest in NSSF. We are keen on seeing it continue to remain a major player in the sector and play an even bigger role in the economic development of the country.”
NSSF currently has 76.1% of its investments in fixed income, 7.9% in real estate and 16% in equity.