Business Model and Value Creation Aligned to the Six Capitals

NSSF Business Model

INPUTS

What we need to run our business


We manage the Fund responsibly and in a profitable manner by making prudent investment decisions from our members’ contributions.


The Fund’s reputation, institutional knowledge and experience are intangible assets that have been built over time instilling confidence in us among our stakeholders and in Uganda at large. investment decisions from our members’ contributions.


We attract, develop, enable and retain the best talent. Our people are provided with attractive career paths and training to make them experts in their fields.


This comprises our governance, business processes, building infrastructure, information technology infrastructure and innovations that enable us to manage the organisation optimally.


We build on the good relationships we have with our members, employees, the Board, the Ministry of Finance, the Ministry of Gender and Social Development, our regulator, URBRA, and the communities in which we operate.


We use natural resources responsibly and continue to reduce our carbon footprint and water usage, adopting a sustainable approach to waste management.

How we run our business

We create, preserve and defend value by using our resources responsibly to generate value maximising outputs and outcomes for our Members and all stakeholders

OUTCOMES

What we achieve


9.65% interest paid to members (2021: 12.15%)


Customer Satisfaction 82% (2021: 86%)


Staff satisfaction 92% (2021: 94%)


93% of customers serviced digitally (2021: 94%)


95% of customers whose logged complaints were resolved on first attempt (2021: 87.0%)


27% saving on water consumption (June 2021: 19%)

… and ensures our ability to create value in the future.

Details of our inputs, outputs and outcomes

Financial Capital

Key inputs

  • Members’ Fund of UGX 16.96T (June 2021: UGX 15.30Tn)
  • Cash balance UGX 72.8Bn (June 2021: UGX 80.8Bn)
  • Contributions received UGX 1.49Tn (June 2021: UGX 1.37Tn)

Key outcomes and outputs

  • Cost-to-income ratio of 11.44% (June 2021: 8.9%)
  • Cost-of-Administration ratio of 1.18% (June 2021: 1.06%)
  • Interest to members (RoE) of 9.65% (June 2021: 12.15%)
  • Benefits paid UGX 1.19Tn (June 2021: UGX 642Bn)
  • Benefits TAT 12.3 days (June 2021: 8 days)
  • 55% of Employer compliance (June 2021: 51%)

Key activities

  • Increased spending to cater for the new demands of the NSSF Amendment Act 2022
  • Paid more benefits to members in the form of midterm access which had a negative impact on profitability
  • Regular advanced analytics, cash flow forecasts and other financial models to guide decisions on the preservation and growth of financial capital

Trade-offs

  • Increase investment in fixed deposits at the expense of treasury bonds

Intellectual Capital

Key inputs

  • A deliberately shaped, customer-centric culture
  • A strong Brand that resonates with
  • consumers
    • Brand costs of UGX 6.6Bn (June 2021: UGX 3.1Bn)

Key outcomes and outputs

  • Tonality score of 95% (June 2021: 83%)
  • Customer satisfaction rate of 82% (June 2021: 86%)
  • Retention of specialist skills (Data Science Specialists, Software Developers, and CFAs)

Key activities

  • Organisational restructuring to position staff where they can deliver the most value
  • Midterm benefits traffic increased workload, however, strategic initiatives were implemented to improve services

Trade-offs

  • No trade-offs

Human Capital

Key inputs

  • 637 staff (June 2021: 631) skilled, customer-centric staff
  • Experienced and ethical leadership team
  • Staff satisfaction and engagement survey
  • Significant investment in learning and development of UGX 2.58Bn (June 2021: UGX 1.9Bn)
  • Employment Equity initiatives UGX 117.5Bn (June 2021: UGX 88.9Bn) paid in salaries and benefits
  • Staff wellness programmes. Spending on staff wellness of UGX 2.78bn (June 2021: UGX 2.22bn) 

Key outcomes and outputs

  • Maintained employee motivation, skills and diversity through:
    • Percentage salary increase for lower staff is equal to Management for the same performance ratings
    • Equity 52% Male and 48% Female (June 2021: 55% Male and 45% Female)
    • Staff attrition of 2.1% (June 2021: 3.6%)
    • 2021 Mercer Total Remuneration Report for Uganda (salary survey)
  • Improved people satisfaction levels:
    • 92% (June 2021: 94%) staff engagement score, > than 68% core engagement level for Africa
    • Investment in upskilling employees of UGX 7.7Bn (June 2021: UGX 1.98Bn)

Key activities

  • Reskilling programmes to address skills gaps
  • Reallocation of staff after reskilling across the organisation
  • Significant investment in staff wellness
  • Continued emphasis on health and safety
  • 98% of our staff were fully vaccinated against Covid-19 by 30 June 2022

Trade-offs

  • Re-aligning the organisational structure to the Fund Strategy

Manufactured Capital

Key inputs

  • Digital channel and innovation spend UGX 1.70Bn (June 2021: UGX 1.68Bn)
  • Infrastructure spend (branches and contact centres) UGX 8.4Bn (June 2021: UGX 9.8Bn)
  • Substantial investment in our Enterprise Architecture UGX 4.8Bn (June 2021: UGX 2.3Bn)

Key outcomes and outputs

  • 93% of our member transactions and interactions were hosted digitally (June 2021: 94%)
  • Uptime of application systems at 99% (June 2021: 99%)
  • Staff efficiently working from home: 100%
  • 2.2 million customers (June 2021: 2.12 million)
  • Social media reach of 31.42 million (FY 2021: 29.9 million)
  • Pay-out of benefits 12 days (2021: 8 days)

Key activities

  • Implemented the Pension Administration System (OctoPAS) and upgraded our ERP system to improve the Fund's efficiency and TAT
  • Commenced with design and development of new products to grow contributions and improve service delivery

Trade-offs

  • Building more resilient and agile IT systems

Social and Relationship Capital

Key inputs

  • A focus on responsible procurement and supplier development
  • Stakeholder engagement
  • Focused and committed to corporate social investment
  • Prioritising commitment to identified SDGs and responsible ESG practices

Key outcomes and outputs

  • Responsible corporate citizen and commitment to SDGs UGX 179.96Bn (June 2021: UGX 212.7Bn) direct and indirect tax contributions
  • Buy Uganda Build Uganda (BUBU) (90% of procurements are with local suppliers)
  • Financial literacy campaigns UGX 0.439Bn (June 2021: 0.3Bn)
  • Compliance with regulatory requirements of the URBRA Act, 2011
  • New membership 6%: (June 2021: 7%)
  • 95% of customers who logged complaints were resolved at the first attempt (June 2021: 87%)  

Key activities

  • Conducted a feasibility study for affordable housing
  • Hosted stakeholder engagement forums through virtual channels
  • Established new ways to engage in CSI activities for continued sustainability

Trade-offs

  • Building more affordable houses for our stakeholders

Natural Capital

Key inputs

  • Energy efficiency and management
  • A meaningful contribution to our environmental sustainability, aligned to the national, regional and global development goals
  • Water conservation and waste management

Key outcomes and outputs

  • 27% saving on water consumption (June 2021: 19%)
  • 4% reduction on energy consumption (June 2021: 5%)
  • 336% increase in paper consumption (June 2021: -70%)
  • 100% of the waste from buildings diverted to KCCA pipelines in line with City Council Solid Waste Management Ordinance of 2000
  • Green certificates for Pension Towers and the Lubowa housing project

Key activities

  • Maintained efficient use of resources to limit the negative impact on the environment
  • Addressed potential environmental impacts of the real estate projects
  • Reduced energy usage by changing lighting in our offices to LED and introduced sensors in our offices for lights to switch on only when there is activity
  • Automated processes to promote a paperless environment
  • High volume midterm claim applications resulted in significant increase in paper consumption

Trade-offs

  • No trade-offs
How our outcomes have delivered value for our stakeholders

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