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NSSF’s Pension Tower worth Shs300 billion
National Social Security Fund’s Pension Tower. In real estate NSSF is the biggest real estate developer in Uganda. Photo | File
What you need to know:
- World over, real estate investments play a major role for private and institutional investors. But as the property industry has influence on the financial market since it depends on it as a highly capital-intensive sector.
The National Social Security Fund’s (NSSF) Pension Tower which will be completed next year, is the largest real estate investment worth Shs300 billion.
Real estate is one of the instruments that the NSSF is investing its members’ funds.
World over, real estate investments play a major role for private and institutional investors. But as the property industry has influence on the financial market since it depends on it as a highly capital-intensive sector.
Presenting a paper titled: Organisational Transformation: Peering into the Future last week during the 26th ICPAU annual seminar, the NSSF managing director Richard Byarugaba said the Pension Tower is one of the productive investments the Fund is making and is the largest real estate in the city.
“The Pension Tower is the largest real estate worth Shs300 billion, we shall open it up when completed next year,” he said.
Mr Byarugaba said 70 percent of the Pension Tower is complete.
Mr Byarugaba also said the Fund has started other products for people to save for instance the savings product fund which is in the offing for the general public.
Mr Byarugaba hinted that the NSSF is also coming up with new innovative products, which will cover education, housing, medical care to help people save outside and above the mandatory 15 percent when they are still working.
The theme for the was: leadership for transformation in a dynamic environment.
Mr Byarugaba said the length of saving the NSSF customers accessing their money is 7 to 8 days but it is likely to increase to 10 to 11 days when they start serving the customer of the Midterm.
Currently, NSSF’s total asset is Shs17 trillion and it is expected to hit Shs20 trillion by 2025.
Most of the NSSF exposure to fixed income stands at 78 percent, while equities gobble up 15 per cent and real estate 7 percent.
Concerning the NSSF’s midterm access and how it will impact on NSSF, Mr Byarugaba said the midterm payment is likely to reduce the interest rate on members’ savings.
“We need Shs2 trillion to pay for the members qualifying for the midterm is,” he said.
