• Mon. Sep 25th, 2023

NSSF Defends its Real Estate Investments After NOTU’s Call for Re-evaluation

He also noted that the Fund has a total of 2.7 million members, with 1.2 million active savers.

Regarding NSSF real estate investments, Ayota also emphasised that the Fund has a diversified investment portfolio that includes real estate, and the investment strategy has been geared towards maximising returns for the benefit of members.

He added that the Fund is currently constructing 17,000 affordable housing units in Nsimbe, Wakiso District, with each unit costing an average of USh200 million. Ayota noted that the project is expected to create over 10,000 jobs and provide affordable housing to low- and middle-income earners.

Ayota also pointed out that the Fund has invested in other key sectors of the economy, such as agriculture, infrastructure, and manufacturing, which have created jobs and boosted economic growth.

He acknowledged that there have been challenges in the management of the Fund, such as the collection of contributions and the payment of benefits, but noted that the Fund has taken steps to address these challenges.

The NSSF Managing Director also called for a review of the NSSF Act to provide for a clear separation of the roles of the Minister of Finance and the NSSF Board.

He noted that the current arrangement, where the Minister of Finance is the appointing authority for the NSSF Board, creates conflicts of interest and undermines the independence of the Fund.

The NSSF and NOTU are both calling for the same thing: investments that benefit the workers who contribute to the Fund.

The NSSF has defended its investments and performance over the past 10 years, while NOTU has called for a re-evaluation of the real estate investments to make them more affordable for the workers.

The Parliamentary Select Committee will have to carefully consider both positions and come up with recommendations that balance the needs of the workers with the need to maximize returns for the Fund.


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