NSSF has capacity to finance Uganda’s major road projects, says Ayota

The National Social Security Fund (NSSF) has urged the government to allow it to participate directly in the country’s infrastructure projects.

The Fund, which grew by 17.5% in the 2024/2025 financial year to UGX 26 trillion, currently invests mostly in Uganda’s financial markets, with additional holdings in other East African Community (EAC) stock markets and some real estate in Uganda. A significant portion of its assets has been lent to the government, making NSSF the country’s largest lender.

Speaking at the 13th Annual Members’ Meeting on Monday, NSSF Managing Director Patrick Ayota said the Fund has the capacity to finance projects like the Jinja Expressway if granted the opportunity.

The Ministry of Finance, Planning, and Economic Development recently announced a 13.5% interest rate for NSSF savers, up from 11.5%, citing earnings growth of 11% to UGX 3.52 trillion. Ayota emphasized that greater domestic investment could reduce Uganda’s reliance on foreign financing, but expanding investments would require more Ugandans to save.

The NSSF Act specifies limits on how the Fund can allocate its resources. Government securities within the EAC can constitute up to 80% of investments, while shares in publicly traded companies may take up to 70%. Fixed and time deposits in licensed EAC institutions are capped at 30%, as are investments in immovable property in Uganda and corporate/mortgage bonds within the EAC. Up to 15% may be invested in private equity, and cash or demand deposits up to 5%.

This framework aims to balance risk while achieving strong returns for members. By the end of the last financial year, NSSF’s assets were allocated 80.5% in fixed income, 13.3% in equities, and 6.2% in real estate, all within URBRA limits.

NSSF has formally submitted a request to the Ministry of Finance seeking approval to invest in government programs, according to Board Chairperson David Ogong. He noted that this move would support the Fund’s 10-year vision of growing assets under management from UGX 26 trillion to UGX 50 trillion. The Fund also plans to diversify into alternative investments, particularly in the informal sector, while maintaining focus on bonds, equities, and real estate.

Both Finance Minister Matia Kasaija and Minister of Gender, Labour and Social Development Betty Amongi praised NSSF’s long-term planning, though they did not comment directly on the proposed infrastructure investments. Minister Amongi highlighted the Fund’s focus on products that attract low-income earners, citing the 2024 NSSF Voluntary Contributions and Benefits Regulations. These allow individuals to save as little as UGX 5,000, with about UGX 29 billion saved so far by 39,000 voluntary contributors.

The minister also noted public requests to reduce the daily savings minimum to UGX 1,000, enabling even more low-income earners to participate.