Uganda's national social security fund grows by 13 pct

Source: Xinhua| 2019-09-17 22:29:27|Editor: xuxin
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KAMPALA, Sept. 17 (Xinhua) -- Uganda's social security fund asset value has increased by 13.1 percent to 11.3 trillion shillings (3.1 billion U.S. dollars) at the end of June this year from 9.9 trillion shillings (2.7 billion dollars) in June 2018.

National Social Security Fund (NSSF), the asset manager, in a new report issued here on Tuesday said the growth is attributed to the increased contributions and interest income.

Richard Byarugaba, managing director NSSF, said member's contributions increased to 1.2 trillion shillings (328.8 million dollars) from 1 trillion shillings (about 274 million dollars), reflecting a 15 percent.

"Our members should be confident about the health of the Fund in the short, medium and long term as the Fund remains financially stable and growing. We have the ability and means to withstand any shock in the economy, given our aggressive but prudent investment approach and our investment diversification strategy," Byarugaba said.

He said the money paid in benefits increased by 25 percent to 450 billion shillings (123.3 million dollars) from 360 billion shillings (98.6 million dollars), adding that the average benefit turnover time in 2018/19 remained flat at 8 days.

Byarugaba said NSSF currently has about two million members although only 830,000 members are active and make monthly contribution.

He said out of the 46,000 employers, only 21,000 employers make their monthly contributions.

He said the Fund will continue to invest members' money in instruments that are defensive and growing in nature.

Every year the institution pays interest to its members from the various investments it makes in Uganda and in the East African region.

Last year, it paid out a record interest rate of 15 percent. However, this year, the Fund said the interest rate would be lower because it made a loss of 402 billion shillings (110.1 million dollars). The loss was due to fall in prices of the stocks across the East African region.

Byarugaba also attributed the loss to foreign currency depreciation especially in Kenya and Tanzania.