The Six Capitals

The Six Capitals

The report adopts an integrated thinking approach that has enabled the Fund to convey the value creation story through the lens of the six capitals.

 

The planned and actual expenditure and other key financial parameters for FY2021/22 demonstrate our ability to create long-term value in line with these six capitals as presented below:

The report adopts an integrated thinking approach that has enabled the Fund to convey the value creation story through the lens of the six capitals.

 

The planned and actual expenditure and other key financial parameters for FY2021/22 demonstrate our ability to create long-term value in line with these six capitals as presented below:

FINANCIAL CAPITAL

We manage the Fund in a value-adding and profitable manner through prudent investment decisions. We operate optimally to ensure we give a competitive return to our members. Key financial-related metrics for FY2021/22 include:

  • Total contributions: Actual: UGX 1,479Bn Budget: UGX 1,500Bn
  • Total Fund Assets: Actual: UGX 17,255Bn Budget: UGX 17,194Bn
  • Investment capital expenditure: Actual: UGX 16,840Bn. Budget: UGX 17,017Bn
  • Non-Investment capital expenditure: Actual: UGX 82.8Bn. Budget: UGX 72.1Bn
  • Total Income: Actual: UGX 1,776.0Bn. Budget: UGX 1,900.1Bn
  • Total operating expenditure: Actual: UGX 203Bn. Budget: UGX 194Bn

HUMAN CAPITAL

Our top objectives are to ensure that we attract, develop, enable, and retain the best talent through providing competitive remuneration packages and benefits, continuous learning, creating an exciting and vibrant work environment and providing our people with attractive career paths. The key expenditure related to human capital was as follows in FY2021/22:

  • Staff salaries and wages: Actual: UGX 117.5Bn. Budget: UGX 96.8Bn
  • Staff medical insurance: Actual: UGX 1.98Bn. Budget: UGX 2.32Bn
  • Group life assurance: Actual: UGX 1.28Bn. Budget: UGX 1.41Bn
  • Staff training expenses: Actual: 2.58Bn. Budget: UGX 1.730Bn
  • Staff welfare expenses: Actual: UGX 5.16Bn. Budget: UGX 6.8Bn

FINANCIAL CAPITAL

We manage the Fund in a value-adding and profitable manner through prudent investment decisions. We operate optimally to ensure we give a competitive return to our members. Key financial-related metrics for FY2021/22 include:

  • Total contributions: Actual: UGX 1,479Bn Budget: UGX 1,500Bn
  • Total Fund Assets: Actual: UGX 17,255Bn Budget: UGX 17,194Bn
  • Investment capital expenditure: Actual: UGX 16,840Bn. Budget: UGX 17,017Bn
  • Non-Investment capital expenditure: Actual: UGX 82.8Bn. Budget: UGX 72.1Bn
  • Total Income: Actual: UGX 1,776.0Bn. Budget: UGX 1,900.1Bn
  • Total operating expenditure: Actual: UGX 203Bn. Budget: UGX 194Bn

HUMAN CAPITAL

Our top objectives are to ensure that we attract, develop, enable, and retain the best talent through providing competitive remuneration packages and benefits, continuous learning, creating an exciting and vibrant work environment and providing our people with attractive career paths. The key expenditure related to human capital was as follows in FY2021/22:

  • Staff salaries and wages: Actual: UGX 117.5Bn. Budget: UGX 96.8Bn
  • Staff medical insurance: Actual: UGX 1.98Bn. Budget: UGX 2.32Bn
  • Group life assurance: Actual: UGX 1.28Bn. Budget: UGX 1.41Bn
  • Staff training expenses: Actual: 2.58Bn. Budget: UGX 1.730Bn
  • Staff welfare expenses: Actual: UGX 5.16Bn. Budget: UGX 6.8Bn

Intellectual CAPITAL

The Fund’s reputation and brand image are intangible assets we continually strive to preserve and improve. Below are some of the key expenses related to intellectual capital:

  • Advertising and promotion expenditure: Actual: UGX 6.57Bn. Budget: UGX 6.26Bn
  • Research, innovation, and strategy: Actual: UGX 6.17Bn Budget: UGX 12.99Bn

Manufactured CAPITAL

This comprises our governance, business processes, building infrastructure, leading systems as well as our investment in information technology infrastructure and innovation that enable us to manage the organisation prudently and professionally. Major expenditure for manufactured capital includes:

  • Information technology expenditure and connectivity (Operational). Actual: UGX 11.2Bn Budget: UGX 9.31Bn
  • Substantial investment in our Enterprise Architecture (Capital). Actual: UGX 19.6Bn. Budget: UGX 33.7Bn

Intellectual
CAPITAL

The Fund’s reputation and brand image are intangible assets we continually strive to preserve and improve. Below are some of the key expenses related to intellectual capital:

  • Advertising and promotion expenditure: Actual: UGX 6.57Bn. Budget: UGX 6.26Bn
  • Research, innovation, and strategy: Actual: UGX 6.17Bn Budget: UGX 12.99Bn

Manufactured
CAPITAL

This comprises our governance, business processes, building infrastructure, leading systems as well as our investment in information technology infrastructure and innovation that enable us to manage the organisation prudently and professionally. Major expenditure for manufactured capital includes:

  • Information technology expenditure and connectivity (Operational). Actual: UGX 11.2Bn Budget: UGX 9.31Bn
  • Substantial investment in our Enterprise Architecture (Capital). Actual: UGX 19.6Bn. Budget: UGX 33.7Bn

Social and Relationship CAPITAL

The relationships and collaborations we have with our key stakeholders – members, employees, suppliers, communities, the Board, the Government of Uganda, and our regulator, URBRA amongst others defines the Fund’s reason for existence. Expenditure on key stakeholders for FY2021/22 was as follows:

  • Benefits paid: Actual: UGX 1,189.4Bn. Budget: UGX 938.0Bn
  • Board Expenses: Actual: UGX 2.03Bn. Budget: UGX 2.69Bn

Natural CAPITAL

We strive to ensure that natural resources are utilised responsibly to reduce our carbon footprint. Additionally, water usage is controlled, and we have a sustainable approach to waste management. In FY2021/22, savings realised on energy and water consumption are as follows:

  • 4% (FY2020/21: 5%) reduction on energy consumption for both Workers House and Social Security House
  • 27% (FY2020/21: 19%) saving on water consumption for both Workers House and Social Security House

Social and Relationship CAPITAL

The relationships and collaborations we have with our key stakeholders – members, employees, suppliers, communities, the Board, the Government of Uganda, and our regulator, URBRA amongst others defines the Fund’s reason for existence. Expenditure on key stakeholders for FY2021/22 was as follows:

  • Benefits paid: Actual: UGX 1,189.4Bn. Budget: UGX 938.0Bn
  • Board Expenses: Actual: UGX 2.03Bn. Budget: UGX 2.69Bn

Natural CAPITAL

We strive to ensure that natural resources are utilised responsibly to reduce our carbon footprint. Additionally, water usage is controlled, and we have a sustainable approach to waste management. In FY2021/22, savings realised on energy and water consumption are as follows:

  • 4% (FY2020/21: 5%) reduction on energy consumption for both Workers House and Social Security House
  • 27% (FY2020/21: 19%) saving on water consumption for both Workers House and Social Security House

Economic Outlook over the Short, Medium and Long Term

The recovery and growth of the world economy continue to be hindered by a series of destabilising shocks. After more than two years of the global pandemic, Russia’s invasion of Ukraine and its global effects on commodity markets, supply chains, inflation and financial conditions have exacerbated the slowdown in global growth.

 

Uganda’s economic activity is projected to remain modest as the shocks to commodity prices, production and distribution disruptions, and global inflation continue to dim the prospects for domestic economic growth according to the Bank of Uganda. Therefore, economic growth is projected in the range of 4.5% to 5.0% in 2022 and rising slightly to 5.0% – 5.5% in 2023, in part supported by public investments. Weaker external demand, high domestic inflation and resultant tighter domestic financial conditions will constrain exports, consumption, and investment.

The Central Bank, through its fiscal and monetary policy interventions, will have to conduct a delicate balancing act between keeping inflation under control and maintaining the post-pandemic economic rebound.

 

Despite the sombre economic outlook, we remain focused on delivering the Fund’s 2015-2025 financial strategic goals of growing the fund size to UGX 20Tn while keeping operating costs below 1% of the fund size.

 

As the Finance Function, we continue to operate optimally and, advance the Fund’s 10-year strategic priorities key among which is cost rationalisation. Some of the enablers of this include embracing technology to handle mundane and repetitive tasks and enhancing our systems to serve our customers better. In addition, we continue to invest in our workforce to equip them with data capabilities and diverse skills that holistically support the organisation to enable informed decision-making.

Economic Outlook over the Short, Medium and Long Term

The recovery and growth of the world economy continue to be hindered by a series of destabilising shocks. After more than two years of the global pandemic, Russia’s invasion of Ukraine and its global effects on commodity markets, supply chains, inflation and financial conditions have exacerbated the slowdown in global growth.

 

Uganda’s economic activity is projected to remain modest as the shocks to commodity prices, production and distribution disruptions, and global inflation continue to dim the prospects for domestic economic growth according to the Bank of Uganda. Therefore, economic growth is projected in the range of 4.5% to 5.0% in 2022 and rising slightly to 5.0% – 5.5% in 2023, in part supported by public investments. Weaker external demand, high domestic inflation and resultant tighter domestic financial conditions will constrain exports, consumption, and investment.

The Central Bank, through its fiscal and monetary policy interventions, will have to conduct a delicate balancing act between keeping inflation under control and maintaining the post-pandemic economic rebound.

 

Despite the sombre economic outlook, we remain focused on delivering the Fund’s 2015-2025 financial strategic goals of growing the fund size to UGX 20Tn while keeping operating costs below 1% of the fund size.

 

As the Finance Function, we continue to operate optimally and, advance the Fund’s 10-year strategic priorities key among which is cost rationalisation. Some of the enablers of this include embracing technology to handle mundane and repetitive tasks and enhancing our systems to serve our customers better. In addition, we continue to invest in our workforce to equip them with data capabilities and diverse skills that holistically support the organisation to enable informed decision-making.

OUR AUDITED FINANCIAL STATEMENTS 2022

We are proud to present positive returns amidst global uncertainty. For details of these results, refer to our Audited Financial Statements for the year ending 30 June 2022.

OUR AUDITED FINANCIAL STATEMENTS 2022

We are proud to present positive returns amidst global uncertainty. For details of these results, refer to our Audited Financial Statements for the year ending 30 June 2022.

Appreciation

I would like to thank the Board and the Executive Management Team for their great support and co-operation rendered during the year. My special appreciation goes to Team Finance for their continuous commitment to excellence and innovation and, lastly to all NSSF staff for their firm commitment to ensuring that the Fund achieves its purpose of Making Lives Better.

 

 

 

Stevens Mwanje

Chief Financial Officer

Appreciation

I would like to thank the Board and the Executive Management Team for their great support and co-operation rendered during the year. My special appreciation goes to Team Finance for their continuous commitment to excellence and innovation and, lastly to all NSSF staff for their firm commitment to ensuring that the Fund achieves its purpose of Making Lives Better.

 

 

 

Stevens Mwanje

Chief Financial Officer