Strategy @ a Glance

Strategy @ a Glance

Our FY2025 Strategy commenced in 2015 and remains relevant in our operating context, despite uncertainties in the external environment. 

The illustration below depicts an overview of our FY2025 Strategy.

INTEGRATING SUSTAINABILITY AND ESG INTO OUR FY 2025 STRATEGY

Good corporate governance is implemented in an integrated manner, promoting an ethical culture, good performance, effective control and legitimacy

Measured through defined Key Performance Indicators to track performance included in the organisation’s Balanced Scorecard and cascading to employee scorecards. Reward and remuneration is linked to both individual and business performance.

Our FY2025 Strategy commenced in 2015 and remains relevant in our operating context, despite uncertainties in the external environment.

 

The illustration below depicts an overview of our FY2025 Strategy.

INTEGRATING SUSTAINABILITY AND ESG INTO OUR FY 2025 STRATEGY

Good corporate governance is implemented in an integrated manner, promoting an ethical culture, good performance, effective control and legitimacy

Measured through defined Key Performance Indicators to track performance included in the organisation’s Balanced Scorecard and cascading to employee scorecards. Reward and remuneration is linked to both individual and business performance.

Key Risks impacting achievement of Strategy

A lower rate of growth in collections coupled with an increase in cash required to pay benefits, arising from the amendments to the NSSF Act, meant that the Fund had less money available for long-term investments. This also necessitated the Fund to change its investment strategy to include short-term investments to have cash available as required. This curtailed the Fund’s ability to create value for members.
Impact of Covid-19 on the economy - many businesses have closed and others have cut back employees. This is affecting collections and investment income.
Inability to meet changing customer expectations could have a negative impact on brand image.
Unauthorised access to data and customer information impacting organisational resilience and reputation.
Changes in interest rates, high inflation, fluctuations in exchange rates and volatility of stocks impacting income earned on equities.

Key Risks impacting achievement of Strategy

A lower rate of growth in collections coupled with an increase in cash required to pay benefits, arising from the amendments to the NSSF Act, meant that the Fund had less money available for long-term investments. This also necessitated the Fund to change its investment strategy to include short-term investments to have cash available as required. This curtailed the Fund’s ability to create value for members.
Impact of Covid-19 on the economy - many businesses have closed and others have cut back employees. This is affecting collections and investment income.
Inability to meet changing customer expectations could have a negative impact on brand image.
Unauthorised access to data and customer information impacting organisational resilience and reputation.
Changes in interest rates, high inflation, fluctuations in exchange rates and volatility of stocks impacting income earned on equities.

2022 Highlights

Providing world-class service to our members

  • 82% client satisfaction
  • Uninterrupted service and successful communication through online and social media platforms
  • Partnership with commercial banks to increase service points (from 19 to 650)
  • Increased functionality with the introduction of a Smart Card

Achieving competitive returns and sustainable growth

  • Total assets of UGX 17.25Tn against a target of UGX 17.19Tn
  • Fund Size grew by 11% from UGX 15.56Tn in 2021 to UGX 17.25Tn
  • Realised Income growth of 11.77% from UGX 1.706Tn to UGX 1.906 Tn
  • Cost efficiency 1.18% (2021: 1.06%)
  • Creation of employment opportunities through the Hi-Innovator Programme
  • Increased financial literacy for members
  • The Fund continues to invest in ESG-compliant companies

Increasing efficiencies to improve service delivery

  • Automated processes
  • 93% of member transactions were completed digitally
  • Leveraging digital technology to provide autonomous and personalised experiences
  • Self-registration for employees
  • Successful implementation of the New Pension Administration System (OctoPAS)

Becoming the employer of choice

  • Staff engagement score of 92%
  • Upskilling of employees to meet future needs
  • Significant investment in employee health and wellbeing
  • Enabling environment for remote working practices
  • Increased communication via digital channels
  • Secondment programme that provides staff with opportunities to further exercise their professional skills and grow their careers

2022 Highlights

Providing world-class service to our members

  • 82% client satisfaction
  • Uninterrupted service and successful communication through online and social media platforms
  • Partnership with commercial banks to increase service points (from 19 to 650)
  • Increased functionality with the introduction of a Smart Card

Achieving competitive returns and sustainable growth

  • Total assets of UGX 17.25Tn against a target of UGX 17.19Tn
  • Fund Size grew by 11% from UGX 15.56Tn in 2021 to UGX 17.25Tn
  • Realised Income growth of 11.77% from UGX 1.706Tn to UGX 1.906 Tn
  • Cost efficiency 1.18% (2021: 1.06%)
  • Creation of employment opportunities through the Hi-Innovator Programme
  • Increased financial literacy for members
  • The Fund continues to invest in ESG-compliant companies

Increasing efficiencies to improve service delivery

  • Automated processes
  • 93% of member transactions were completed digitally
  • Leveraging digital technology to provide autonomous and personalised experiences
  • Self-registration for employees
  • Successful implementation of the New Pension Administration System (OctoPAS)

Becoming the employer of choice

  • Staff engagement score of 92%
  • Upskilling of employees to meet future needs
  • Significant investment in employee health and wellbeing
  • Enabling environment for remote working practices
  • Increased communication via digital channels
  • Secondment programme that provides staff with opportunities to further exercise their professional skills and grow their careers

Reflection on strategy for the period under review

We are currently in our 8th  year of executing our 10-year strategy.  The strategy focuses on delivering the four goals below:

 

  • Achieve a customer satisfaction rate of 95%
  • Achieve a Fund Asset size of UGX 20Tn
  • Pay members who claim within 1 day
  • Achieve a staff satisfaction rate of 95%

 

The Fund continues to deliver excellent results in all metrics we measure ourselves against to ensure the achievement of milestones and execution of strategy. We are confident that our business is well positioned to deliver another solid set of results in the year ahead as well as in the medium and long term.

 

To acknowledge what has to date been inherent in our strategy, we have included sustainability drivers in the strategy to demonstrate our commitment to delivering on the SDGs that we have prioritised as well as the environmental and social (ESG) impact we would like to make as a Fund.

Reflection on strategy for the period under review

We are currently in our 8th  year of executing our 10-year strategy.  The strategy focuses on delivering the four goals below:

 

  • Achieve a customer satisfaction rate of 95%
  • Achieve a Fund Asset size of UGX 20Tn
  • Pay members who claim within 1 day
  • Achieve a staff satisfaction rate of 95%

 

The Fund continues to deliver excellent results in all metrics we measure ourselves against to ensure the achievement of milestones and execution of strategy. We are confident that our business is well positioned to deliver another solid set of results in the year ahead as well as in the medium and long term.

 

To acknowledge what has to date been inherent in our strategy, we have included sustainability drivers in the strategy to demonstrate our commitment to delivering on the SDGs that we have prioritised as well as the environmental and social (ESG) impact we would like to make as a Fund.

HIGHLIGHTS FOR THE YEAR

NSSF Amendment Act 2022

During the financial year, the NSSF Amendment Act 2022 was passed into law. This has opened endless possibilities and opportunities for the Fund and its members.

 

The new Act now enables:

Voluntary top-ups

Members can increase their contributions beyond the mandatory 5%.

New benefits

In line with the Geneva Convention 102 on Social Security (Minimum Standards), the Informal Sector & SME workers can now save with NSSF. The Amendment Act removes previous provisions that limited savers to only those working for entities with 5 or more employees.

Adequacy of savings

Improving compliance enforcement and arrears recovery.

Midterm access

Qualifying members can access part of their savings early.

New Pension Administartion System

The Fund onboarded OctoPAS, a next-generation core Pension Administrative System engineered for the new era which is agile and cost-effective.

Economic opportunities for Uganda

Underpinning the execution of the Fund’s strategy is a spirit of innovation. Through the innovation strategy, the Fund aims to create an eco-system and community of innovators.  Together with our strategic partners, the Fund is supporting small businesses that have the potential to scale and bring new economic opportunities to Uganda. These will enable a future pipeline of contributions and new investment opportunities.

Remaining true to our Purpose

The Fund will continue to strive for a better life for members even beyond 2025. The focus will always be to deliver excellent service through the various touch points and tangible value to the member through benefits. Our promise will remain on delivering a return that beats long-term inflation and protection against key social risks so that our members can take charge of their future and financial wellbeing.

Remaining true to our Purpose

The Fund will continue to strive for a better life for members even beyond 2025. The focus will always be to deliver excellent service through the various touch points and tangible value to the member through benefits. Our promise will remain on delivering a return that beats long-term inflation and protection against key social risks so that our members can take charge of their future and financial wellbeing.