NSSF is a key government partner in economic development

Special 40th Anniversary Edition

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I congratulate the members, Board, Management, Staff, and all other stakeholders of the National Social Security Fund (NSSF) on the 40th anniversary.

I also congratulate the NSSF members, past and present, who diligently save with the NSSF every month. Without them, the Fund would not exist.

This 40th anniversary marks a significant milestone, one that is worthy of celebration, as we reflect on the remarkable progress achieved over the past four decades. The NSSF has experienced substantial growth, both in terms of financial performance and membership enrollment, and these achievements serve as a testament to its ongoing contributions to the nation’s development.

Having had the privilege of overseeing the Fund for over a decade in my capacity initially as the Minister of State for General Duties, and now Minister of Finance Planning and Economic Development, I can unequivocally attest that, despite facing numerous challenges, the Fund has consistently exemplified the highest standards of governance.

It has become a model public institution, characterized by its unwavering commitment to transparency, accountability, financial discipline, and innovative practices that prioritize value creation for the benefit of the saver.

In this regard, I would like to take this opportunity to commend the Fund for its exceptional performance in three critical areas that are central to Uganda’s economic progress, both in the immediate and long-term future.

First, the Fund’s role in mobilising long-term local capital deserves particular recognition. As the leading institution in Uganda for mobilising domestic, long-term savings, the NSSF plays an indispensable role not only as the primary provider of social security but also as a key player in the design and implementation of innovative financial products and systems aimed at encouraging savings and enhancing accessibility for all Ugandans.

This strategic initiative has enabled Uganda to amass a considerable pool of local funds, which has been instrumental in supporting government projects. Presently, the NSSF holds approximately 23% of Uganda’s domestic debt, and this role is expected to become even more significant as the country endeavors to reduce its dependency on external development financing for national budget support.

Second, I would like to highlight the Fund’s pivotal role in fostering a national culture of saving. Economic transformation cannot be achieved without a robust savings rate. It is widely recognized that nations, particularly those in East Asia, were able to drive their own development agendas after their domestic savings rate exceeded 25% to 30% of GDP.

Currently, Uganda’s long-term domestic savings-to-GDP ratio stands at approximately 11%. The NSSF will be a critical driver in efforts to raise this ratio to at least 30% over the next decade, a milestone that will significantly contribute to Uganda’s ascent to the ranks of developed nations.

Third, the NSSF has established itself as one of the most prominent domestic investors in Uganda over the past 40 years, with total investments now exceeding UGX 20 trillion. This has been achieved through a combination of strategic investments in the Uganda Securities Exchange and direct involvement in various developmental projects initiated by the Fund.

It is imperative that Ugandans and Ugandan enterprises, including the NSSF, continue to prioritize investment in our own economy. This will not only help stimulate economic growth but will also create the much-needed employment opportunities for our citizens. I strongly encourage the Fund to continue to lead in this area, embracing its role as a driver of national economic development.

Finally, while a celebration of 40 years of existence is undoubtedly an occasion for reflection, it should also serve as an opportunity for the Fund to assess and learn from the challenges it has encountered along the way. History is a valuable teacher, and the lessons gleaned from past experiences will prove vital in ensuring that the Fund does not rest on its laurels but continues to evolve, innovate, and expand its impact in the social security sector.

In conclusion, I would like to reiterate my appreciation for the accomplishments of the NSSF over the past four decades, and I look forward to seeing the Fund continue to lead with distinction as it contributes to the realization of Uganda’s economic and social development objectives.