In a recent interview with CEO East Africa Magazine, NSSF Managing Director Patrick Ayota discussed the Fund’s FY2022/23 performance and the building blocks of its ambitious UGX50 trillion Vision 2035. Ayota’s insights shed light on the Fund’s efforts to increase Ugandans’ willingness and ability to save, showcasing remarkable achievements in the face of challenges.
The FY2022/23 performance surprised many stakeholders, given global financial market turbulence and intense scrutiny. The Fund had a contribution target of UGX135 billion per month, and despite starting the financial year behind, they exceeded their goal, collecting UGX120 billion above target. Notably, voluntary savings also surpassed their target, demonstrating strong member commitment.
The Fund’s assets under management (AUM) grew by UGX1.32 trillion, reaching UGX18.56 trillion, while maintaining high customer satisfaction levels. Ayota attributes this success to a decade of strong performance, informed stakeholders, and continuity in management.
Looking ahead, NSSF aims to achieve its UGX20 trillion targets under the 10-year strategic plan by June 2024 and, subsequently, reach the UGX50 trillion Vision 2035. To do so, the Fund is focused on expanding its reach to cover at least 50% of eligible workers, including those in the informal sector.
To achieve this goal, NSSF plans to increase both the willingness and ability to save. Initiatives like the NSSF Hi-Innovator program, which invests in startups, aim to create jobs and attract new members. Ayota emphasizes the importance of addressing the demand side in agriculture, thus stimulating farmers to save.
While NSSF’s funding approach is a hybrid that includes grants and equity investments, their primary goal is to help startups grow. The Fund has already seeded 265 businesses, creating jobs and new contributors.
Ayota highlights NSSF’s role as an investment fund, emphasizing the need to take calculated risks. He acknowledges that not every decision will be perfect, but the Fund’s consistent growth reflects more right decisions than wrong ones.
Regarding members’ access to savings for home acquisition, Ayota notes that legislative amendments are necessary to make this possible. Such changes could enable members to use their savings as collateral for home mortgages, thereby facilitating access to housing.
Ayota’s main concern is maintaining member trust and meeting high expectations due to the Fund’s past performance. NSSF is committed to being a well-governed organization, focusing on the UGX50 trillion Vision 2035, maintaining interest payments above the 10% average inflation rate, and achieving 100% customer satisfaction and staff engagement.
