KAMPALA, Uganda — The National Social Security Fund (NSSF) has invested Shs180 billion to acquire a 30 percent stake in the newly opened dual-branded Kampala Marriott Hotel and Executive Apartments, expanding the fund’s investments in Uganda’s real estate sector.
The investment, first announced in August, gives NSSF a minority stake in the development owned by businessman Ponsiano Ngabirano’s Capital Shoppers Group.
The Kampala Marriott marks Marriott International’s flagship entry into Uganda and combines a hotel and executive apartment development.
The project has created more than 350 jobs, with about 95 percent of the positions going to Ugandans, according to information released on the investment.
NSSF’s investment forms part of the fund’s strategy of diversifying members’ savings across asset classes while generating returns over the long term.
The investment comes as NSSF reported a 22.53 percent return, resulting in Shs5.44 trillion being credited to members’ accounts.
The fund’s total assets have also grown to about Shs32.8 trillion, strengthening its position as one of Uganda’s largest institutional investors.
The Marriott investment adds to NSSF’s growing portfolio of property and other domestic investments, as the fund seeks opportunities capable of generating returns for members while contributing to economic activity.
The Kampala development is expected to support Uganda’s hospitality and business tourism sectors by adding international-standard accommodation and conference facilities to Kampala’s hotel market.
The investment has also generated interest among NSSF members, some of whom have jokingly referred to themselves as “co-owners” of the Marriott because their retirement savings have been invested in the project.
NSSF has been holding engagements with members and the wider public to explain how the fund invests contributions and how investment performance translates into returns credited to individual accounts.
The Shs180 billion investment therefore represents more than an expansion of NSSF’s property portfolio: it places members’ retirement savings in a major hospitality project while giving the fund exposure to Uganda’s growing accommodation and business-travel market.
