NSSF spending $1m to build new Mbarara complex
November 20—The cash-rich National Social Security Fund (NSSF), with assets of just over $1.6 billion, is building a proposed UGX3.9 billion (about $1 million) commercial complex in Mbarara, western Uganda.
“We are aware that Mbarara is the fastest growing town in Uganda today and is the economic hub of the western region with budding businesses. This project will be another symbol of economic growth in this vibrant town,” Richard Byarugaba, the NSSF managing director said.
Mayor Robert Kakyebezi said, “ We are excited to have one of the biggest financial institutions set up such a development project in our city. I believe it will attract more companies to establish homes in Mbarara and ultimately spur growth of the local economy.”
NSSF is a national saving scheme mandated by the government through the National Social Security Fund Act, Cap 222 (Laws of Uganda) to provide social security services to employees in Uganda. NSSF is a provident fund (pays out contributions in lump sum). It covers all employees in the private sector including Non-Governmental Organizations that are not covered by the Government’s pension scheme.
The proposed development will sit on 0.43 acres and is planned to be a modern retail and office complex comprising of four floors with a total built-up area of approximately 1,500 square metres and parking space for up to 40 vehicles.
Construction began mid this year and is expected to be completed by the end of 2018. The project will bring numerous opportunities to the local economy that include provision of office space in a serene neighborhood and market for construction materials in the community. It has also provided employment to hundreds of youth in the district, who currently work at the construction site.
Byarugaba said, “This project will enable the Fund to continue to diversify its investments thereby minimizing any risks within our asset classes that can impair the Fund’s ability to achieve its investment objectives.”
The Fund’s investment formula consists of fixed income that comprises 76.9% of its total assets, equity at 15.3% and real estate at 7.8%.
The other real estate projects currently being developed by the Fund include UGX3.3 billion commercial building in Jinja; the UGX14 billion housing project in Mbuya and the recently commissioned 2,741- unit high end housing project in Lubowa, both areas on the outskirts of the Kampala city centre. The Fund also plans to set up a 5,000-unit affordable residential housing estate in Wakiso.
, the leading social security provider in Uganda, has today officially commissioned the construction of its shs3.9bn ultra-modern multipurpose commercial building in Mbarara town.
The development sits on theFund’s 0.43 acres and is planned to be a modern retail and office complex comprising of four floors with a total built-up area of approximately 1,500 m² and parking capacity of up to 40 vehicles.
While inspecting the construction works at the project site, Richard Byarugaba, NSSF Managing Director said that the project reinforces the Fund’sstrategy to diversify its investment portfolio. It is also in line with the Fund’s strategy to unlock value of its real estate investments and accelerate growth.
“This project willenable the Fund to continue to diversify its investments thereby minimizing any risks within our asset classes that can impair the Fund’s ability to achieve its investment objectives,” Byarugaba said.The Fund invests in Fixed Income that comprise 76.9% of its total assets, Equity that stands at 15.3% and Real estate at 7.8%.