Retirement: Zamara crosses Shs1 trillion in assets
The retirement benefits sector has been registering some good growth in the last five years. Photo / File
What you need to know:
- Assets under umbrella schemes in 2024 grew by an average of 31.7 percent
The retirement benefits sector has been registering double-digit growth in the last five years, illustrating increased potential among umbrella schemes.
Uganda Benefits Retirements Authority data shows that assets under licensed retirement umbrella schemes grew by an average of 31.7 percent in the period ended December 2024, allowing substantial expansion in assets under management and interest offered on member savings.
During the period, some umbrella schemes such as Zamara recorded an increase in assets and offered a 14 percent return on savings for its shilling portfolio, which significantly outpaces the 3.3 percent inflation.
The scheme - Zamara Retirement Fund – crossed the Shs1 trillion mark in assets under administration, covering more than 17,000 members across 42 corporate clients.
Speaking at the Zamara Retirement Fund (ZRF) annual general meeting, Kwame Ejalu, the sponsor trustee and founder of Zamara, said crossing the Shs1 trillion mark was a milestone in the Fund’s 30 years of innovation and fiduciary responsibility.
“We have grown to … over Shs1 trillion in assets and a membership. These numbers are not just statistics; they represent livelihoods, dreams, and dignified retirements,” he said.
Kwame Ejalu, the sponsor trustee and founder of Zamara. Photo / Courtesy
The retirement industry has undergone major shifts - from regulatory reforms to digital transformation.
Zamara, which is largely rooted in Kenya, has operations in Uganda, Tanzania, Rwanda, Malawi, and Nigeria.
During the period, ZRF’s net assets rose by 27.8 percent from Shs69.3b to Shs88.6b, powered by Shs18.05b in contributions, a 68 percent increase in net surplus after tax to Shs10.17b, and Shs11.24b in investment income.
Thus, the Fund declared an interest of 14 percent on the shilling portfolio and 5 percent for the dollar portfolio.
George William Egaddu, the Zamara chairperson of the board of trustees, said the interest preserves members' balances. Interest rose to 12.9 percent from 9.6 percent in 2023, while maintaining a cost-to-assets ratio of 0.8 percent.
The Fund’s conservative allocation - 85.3 percent in government securities - contributed to both safety and yield, supported by growth in membership by 10.6 percent, from 1,722 to 1,904.
Secure growth
Zamara administers a range of funds, with ZRF standing out as its flagship umbrella provident scheme.
The umbrella model allows multiple employers to participate in a shared governance and administration structure, unlocking economies of scale and professional investment management.
Egaddu said the Fund will continue to focus on enhancing member value through prudent investments, strong governance, and proactive risk management.
“We continue to explore opportunities to grow the Fund sustainably and to deliver competitive long-term returns for members,” he said.
Ejalu also noted that Zamara was backed by strong governance and a shared vision to secure financial well-being for all our members.
