DAR ES SALAAM : THE National Social Security Fund (NSSF) has recorded massive growth in terms of the fund’s total assets by 2.8tri/-, equivalent to 55 per cent for the period of two years.
Presenting the 2021/2023 performance report to media editors, during a series of meetings organised by Office of the Treasury Registrar (OTR), NSSF’s Director General Masha Mshomba said the fund’s total assets increased from 5.2tri/- in March 2021 to 8tri/- in June, this year.
Mr Mshomba said that the increase in the fund’s total assets has been largely attributed to the increase in income from contributions, investments, control spending and enhanced financial control systems.
He added that the value of the fund (size) has increased by 50 per cent to reach 7.6tri/- on June 30, 2023, compared to 5tri/- on June 2021, adding that the increase in fund’s size resulted from the increase of income from members’ contributions and the growth of the fund’s businesses and investments.
“The growth of the fund is due to the increase in income garnered from members’ contributions and investments,” the NSSF’s boss noted, adding that in the period of two years, the collection of contributions has increased by approximately 45 per cent and the income from the investment of the fund has increased by more than 90 per cent.
“Between March 2021 and June 2023, NSSF registered a total of 547,882 members and the number of members increased by 36 per cent from 874,082 in March 2021 to 1,189,222 members in June 2023 due to the government’s strategy to attract investors and the implementation of fund’s plan in the enrollment of members,” Mr Mshomba said
Speaking about the increase in members’ contributions, he said monthly contribution collections increased from 97.67bn/- in March 2021 to 143.05bn/- per month in the fiscal year that ended in June 30, 2023.
“This increase in contributions is due to the increase in employers’ contributions on time and a good business environment for the private sector…the investment portfolio increased by 111 per cent from 3.3tri/- in March, 2021 to 7tri/-on June 2023 due to the growth in the value of securities, member contributions and investment income,” he added.
The NSSF DG said in the fiscal year that ended on June 30, 2023, the fund paid 61.9bn/- per month to various beneficiaries, which is an increase of 22 per cent compared to the 50.5bn/- paid per month for the period that ended on March 1, 2021.
“This increase was attributed to the increase in unemployment benefit and special lumpsum claims,” he said
NSSF is implementing five projects including Dungu, Toangoma, Mtoni Kijichi housing projects, Mzizima Towers, commercial and residential buildings and a five-star tourist hotel in Mwanza City.
According to Mr Mshomba, in March 2021, the fund resolved the tender and contractual challenges that led the projects to stop in 2016, where currently the implementation of all projects is ongoing and are expected to be completed between June and September 2024.
On the other hand, Mr Mshomba said the fund’s ICT improvements resulted in the establishment of a self-service system for Employers (Employer Portal), a self-service system for Members (Member Portal) and member inspection system (Inspector Portal).
The fund has been able to reduce the payment days of its members’ benefits from an average of 68 days in March 2021 to an average of 30 days in June 2023 for members who completed their information correctly.
“Through these improvements, 75 per cent of benefit claims are paid within 30 days, directly through the account of the member, retiree or dependent,” he noted.
Similarly, he stressed that the fund has continued to strengthen systems and financial management to avoid loopholes in the loss of money, continue to afford operating costs and pay appropriate benefits to retirees and other beneficiaries.
In 2018, the government made improvements to the Social Security Sector that resulted in the amendment of the Law of the National Social Security Fund, Chapter 50 and making NSSF the only fund that serves social security for private sector workers and the informal sector in the country.