How NSSF benefits boosted Mpalanyi’s technical school

When Ms Faheera Mpalanyi Bbosa joined the microfinance department under the project of rural financial services programme, her coordinator organised a retreat for the new employees on the project. One of the hot topics of the day was preparation for retirement and something about this subject remained on her mind.
“What will I do when I retire?” she thought. She always had a vision of constructing a technical institute purposely to help those who drop out of school after Primary Seven, Senior Four and Six because she knew a number of parents could hardly afford university tuition.

Reason for starting
The 44-year old agriculturalist also opted to start a technical institute because it was an area she understood well.
“I understand the education sector especially about technical education. I understand agriculture because I am an agricultural scientist doing something I love,” she says.
In the past, Ms Mpalanyi had dipped her toes in the business waters including sinking Shs47m in a hardware business that lasted eight years.
“Reason was I was not engaged into the business. I went into car hire services. I purchased two cars for tours and failed in that business because I was not fully involved. But since I started this school with my husband, we are moving because we are doing what we understand,” she says.

Getting started
With her husband, Mr Hussein Musa Bbosa, they opened a Technical Institute named International College of Agricultural Sciences offering certificate and diploma programmes.
In 2013, about 73 students enrolled at the Institute with the biggest number pursuing certificates in community polytechnic.
However, by 2014 and 2015, financial setbacks derailed further investment. Students who expected the school to grow did not return to pursue diplomas.
Having worked as a lecturer at Ndejje University, regional manager in the microfinance department under the ministry of Finance and a principal at Mityana Agrovet, the agricultural scientist had accumulated some good money on her National Social Security Fund (NSSF) account.

In October 2016, she applied for a job in Public Service and when she got her appointment in the ministry of Education, she applied for exempted employment benefits.
“I went and applied and they told me it must be certified by the Permanent Secretary. When I submitted the certified form eight days later, I received a message that a portion of money had been deposited and I could not believe it,” she explains.

Savings
Ms Mpalanyi received Shs65m after saving for 13 years with the Fund and luckily, prior to the application, she had plans for it.
The benefits boosted her business journey. The land where the school sat then was inadequate. As a vocational school dealing majorly in agricultural courses, it also needed a school farm for hands-on farming experience, cut food costs and generate income.

With each acre valued at Shs21m, she used part of the money to pay for a three-acre farm land in Gombe-Wakiso District, purchase more land for the school that now sits on an acre of land in Kawanda, continue constructing the school’s administration block and start a farm supply centre for students to learn how to dispense drugs to farmers.
Today, the school has 84 students pursuing community polytechnic certificate, national certificate of agriculture, national diploma in crop production and management and national diploma in animal production and management for students who have completed Primary Seven, Senior Four and Senior Six, respectively.

The institute’s farm is barely six months old and Ms Mpalanyi, with the help of students has so far planted a one-acre banana plantation, cassava, maize, sweet potatoes, pumpkins, tomatoes and beans.
“This first season has benefitted us a lot. We planted an acre of maize and expect about 13 bags, meaning we are not going to buy food next term,” she says.

Challenge
Unfortunately, the farm lacks a nearby water source, which would otherwise increase the Institute’s returns.

Plans
The institute intends to have a model farm including a poultry unit, a cattle project, a milling machine for animal-feed making and a horticultural project for export.
The business is profitable. The funds from NSSF boosted the business which in turn helped her do further investments.
“At the end of the year when I have 80 students, I make savings of about Shs16m (net profit),” she says.

But still, parents are poor, she says. The school has many school fees defaulters yet it needs structures to accommodate more students.
She has resorted to agreements with needy students who study and pay their tuition once they start working.
Almost 15 months after receiving her benefits, Ms Mpalanyi says NSSF savings are real. If she got Shs35m from NSSF, another classroom would be erected to boost student numbers.

What are exempted employment benefits?
Exempted employment benefits are paid to a contributing member who joins employment categories that are exempted, that is to say, have their social protection schemes that are recognised under the exiting law and are exempted from contributing to NSSF, for example, the army, police, prison, civil service and government teaching service employees.

HOW BENEFITS BOOSTED HER BUSINESS
With each acre valued at Shs21m, she used part of the money to pay for a three-acre farm land in Gombe-Wakiso District, purchase more land for the school that now sits on an acre of land in Kawanda, continue constructing the school’s administration block and start a farm supply centre for students to learn how to dispense drugs to farmers.

Advice
She has advice for working Ugandans.
“I encourage all Ugandans who are supposed to save compulsorily and those who are not supposed to, to go for voluntary saving because this is the only institution where you keep your money and you find it intact,” she says.
To those who await retirement, Ms Mpalanyi says the best decision is venturing into an enterprise one understands well and loves.

“Invest money in something you understand best, love and something you will monitor. I cannot spend a week without visiting the farm. I do not employ people as I use my children and students because I need to show them that success does not come through other people’s efforts,” she explains.
For her, as long as people are still living, they have to eat. So agribusiness is the future of the country.

To vote for Faheera Bbossa in the NSSF Friends with Benefits competition, dial *254# or go to www.nssfug.org.