NSSF Surpasses 2023/2024 Targets Says Ayota

The National Social Security (NSSF) says it ended the financial year 2023/2024 on a good note having surpassed the targets.    

The Fund’s Managing Director, Patrick Ayota, MD, NSSF Uganda said the preliminary analysis shows that performance on the key indicators will surpass its annual targets.  

“We have commenced on our annual audit. We will update NSSF members at the end of that exercise,” he said in a statement.      

The Fund’s assets according to Ayota now stand at UGX 21.6 trillion. “Recall that our target for June 2025 was 20 trillion. We reached that target in January 2024, 18 months ahead of the target. I want to thank the entire NSSF family for the hard work they have put in to grow the Fund,” he said.     

The Fund's membership stands at about 2.2 million members.

He explained that NSSF investment approach, diversification strategy and strategic asset allocation have given our members much value.  

“The fixed income portfolio stands at 79.1% of total assets, and the equity and real estate portfolios stand at 13.8% and 7.1% respectively. Our membership stands at about 2.2 million members.”     The Fund reportedly earned a UGX 39.8 billion in dividends for the year ended December 31, 2023, arising from our investment including that in MTN Uganda.   

Ayota said the payment is the largest the Fund has earned from a listed company in the East African region this year.  

“This brings the total gross dividend earned from MTN Uganda over the last 3 years to UGX 80.6 billion. Previously, the Fund earned UGX 9.3 billion and UGX 31.5 billion dividends for the years 2021 and 2022 respectively. As you will hear from MTN, the dividend yield, which is a measure of stock return, has been one of the best in this region,” he revealed.    

“Not only is MTN Uganda the best performer across our equity portfolio this year, but the company has also been consistent in delivering positive growth since the IPO. MTN presents a long-term growth opportunity for us, given its consistently impressive business and financial performance over the years,” Ayota added.     

Sylvia Mulinge, CEO MTN Uganda said NSSF Uganda is to date is its largest institutional shareholder. NSSF Uganda is the largest indigenous shareholder in MTN Uganda with an 11.7% shareholding.  

“It is with great pleasure today that we at MTN Uganda come to celebrate the return on investment to our shareholders. And we are privileged to serve the many Ugandans who have a stake in the Fund” said Mulinge.    

She said MTN Uganda has continued to perform positively and has consistently returned an attractive dividend to its shareholders.  

“In June, the 7th dividend payment of UGX 6.4 totaling UGX 143 billion was credited to all registered shareholders on their mobile money wallets and nominated bank accounts,” she said.     

The performance according to Mulinge is in addition to the two interim dividends paid out the previous year in September of UGX 6.0 per share and UGX 5.6 per share in December totaling UGX 259.8 billion.     Mulinge noted that the total dividend paid out for the Financial Year 2023 signals a 13.2% increase in payment for its shareholders from the previous year.     

She further noted that since the IPO in December 2021, the total dividend paid to shareholders has totaled UGX 864.4 billion.   “ I note that these dividend payments have grown in tandem with the company's performance.    

She presented a cheque of UGX 39.8 billion to the Fund in what she said was a testament to the belief NSSF had in the firm when it invested UGX 360 billion in the Initial Public Offering and an additional UGX 90.9 billion in the recently concluded secondary offer for sale of ordinary shares in MTN Uganda.    

“ On that note regarding the Offer, we are pleased with the outcome that registered a 230% subscription. The oversubscription signaled an appreciation of the Company's strategy and continued positive performance evolution” she said.    

According to Mulinge, the increased NSSF investment in MTN Uganda aligns broadly with MTN Group's objective to broaden local shareholding in the countries it invested in.   

“ The offer also provided an opportunity to all Ugandan retail and professional investors, including MTN Uganda's loyal customers, to own a stake in the Company. We take this opportunity to thank all our 20,636 shareholders and over 200 smaller pension funds and SACCOs representing millions of Ugandans for choosing MTN Uganda and investing with us,” Mulinge added.