The Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija has today declared an interest rate of 12.15% on members’ savings for the Financial Year 2020/21.
Kasaija who was presiding over the 9th NSSF Annual Members Meeting, congratulated the Fund and its members upon the stellar performance registered during the last Financial Year.
He said the performance as presented by the MD and CBOD is commendable given that the COVID-19 pandemic has had massive economic and social effects across the globe.
Uganda was no exception, with the Economy growing at 3.3% in the financial year 2020 to 2021.
“To register any growth is therefore very commendable. I would like to emphasise 3 key issues before I perform the mandatory requirement of declaring the interest rate members will earn for the Financial Year 2020/21.”
Resilience and Stability of the Fund
For over six years that Kasaija been Minister of Finance, Planning and Economic Development, charged with overseeing the Fund, the Fund has registered growth every year across its key performance indicators.
“I am aware that this growth is not by accident but has been borne out of a deliberate vision and strategic focus. I would therefore like to applaud the Board and Management for a job well done.”
The NSSF Amendment Bill,
“The MD and CBOD have both mentioned the NSSF amendment bill, I therefore advice management to ready yourselves to tap into the opportunities that will be presented when the bill is enacted into law.”
“Let me touch on the opportunities briefly; –
Coverage extension: Every employer, including those employing less than 5 employees, will be eligible to contribute to the Fund.”
Value Creation for Members
The Fund will also have the mandate to innovate new benefits for its members. Exponential growth of Asset Size; the Fund will have latitude to collect even more savings from mandatory members in form of voluntary basis.
“The challenge, I throw back to CBOD & MD is to ensure the Fund is ready to tap into the opportunities. I pledge my support in ensuring that this legislation is fast tracked. There is consensus on almost every clause, and the Bill will be beneficial for all.”
Protection of member savings.
Although inflation is now under control – below 4% over the last 4 years, it is of utmost importance that members’ funds are protected against effects of inflation in the medium and long term.
Speaking at the same event, John Muwanga, Auditor General said he has audited the financial statements of NSSF which comprised the statements of net assets available for benefits as at 30th of June 2021 & the statements of changes in net assets available for benefits, statements of changes in fund reserves and statements of cash flows, for the year then ended and notes to the financial statements including a simony of significant accounting policies as set out on pages 12 and 95.
“In my opinion, the financial statements present a true and fair view of financial position of the fund at 30th June 2021 and of its financial performance and cash flows for the years then ended in accordance with international financial reporting standards.”
On his part, NSSF Managing Director Richard Byarugaba, said for the first time in history, “we will be launching our financial statements at the same time with the issuance interest rate, but it also an integrated financial statement which means it is everything you want to know about the fund.”