Site icon MONEYINAFRICA

NSSF posts Shs400b growth in income

NSSF posts Shs400b growth in income

Mr Byarugaba says the Fund has remained resileint amid a number of disreptions resulting from Covid-19. PHOTO/FILE National Social Security Fund (NSSF) has registered a Shs400b growth in income, representing a percentage increase of 25 per cent.

The growth signals sustained resilience amid Covid-19 related disruptions and a slowdown in economic growth.
During the period ended June 30, the Fund registered Shs1.84 trillion in investment income compared to Shs1.47 trillion in the period ended June 30, 2020.

This was driven by growth in interest income, largely attributed to the increase in return on treasury bonds, dividend income and real estate income.

For instance, during the period, interest income grew from Shs1.4 trillion to Shs1.6 trillion while dividend income grew from shs62.2b to 7.49b. Real estate income grew to Shs53.5b up from Shs11.1b.

During the period, Mr Richard Byarugaba, the NSSF managing director, said the Fund had benefited from a consolidated pay-out in dividends that had been held back by a number of companies at the height of Covid-19 disruptions.

NSSF commands one of the largest investment portfolios in Uganda with 78 per cent invested in fixed income while 15 per cent is invested in equities and 7 per cent in real estate.

In April last year, Bank of Uganda and Uganda Securities Exchange directed commercial banks and listed companies, respectively, to delay payment of dividends to retain money for discretionary capital and the real economy.

While presenting the Fund’s financial results for the period ended June 30 in Kampala yesterday, Mr Byarugaba said the Fund had despite a number of challenges registered growth in member contributions which grew from Shs1.27 trillion to Shs1.37 trillion, representing an increase of 8 per cent.

However, he said, the Fund had also registered substantial growth in benefits pay out which during the period increased by 29 per cent, growing to Shs642.3b compared to Shs496.4b for the period ended June 2020.

Mr Byarugaba also noted that the Fund had paid out at least Shs2b to members battling Covid-19 through the invalidity benefit window.
However, he said, the overriding growth in benefits pay out compared to collections was a demonstration that the Fund had now matured with its growth generated from investment income rather than member contributions. During the period, the Fund defied Covid-19 related disruptions to grow in its assets portfolio from Shs13.3 trillion for the period ended June 30, 2020 to Shs15 trillion, representing 17 per cent growth.Mr Byarugaba also noted that […]

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.
Exit mobile version