This archive report was first published on 22 September 2019.
Published on September 22, 2019, by Bernard Busuulwa, a financial expert, highlighted the challenges faced by Uganda's state-controlled social security fund, the National Social Security Fund (NSSF).
The NSSF has been affected by falling interest rates earned on treasury bonds and toxic stock market conditions. According to data from the Ministry of Finance, Planning and Economic Development, weighted interest rates earned on Ugandan treasury bonds fell from 15.6 per cent in 2017/18 to 14 per cent in 2018/19.
Indicative rates for treasury bills dropped to around 8.8 per cent during the same period. This decline in interest rates is attributed to the loose monetary policy adopted by the Bank of Uganda since 2018 to boost economic growth and consumer demand.
The NSSF's total income generated by its assets grew modestly from Ush1.05 trillion ($283.7 million) in 2017/18 to Ush1.26 trillion ($340.5 million) in 2018/19. The Fund's total assets grew to Ush11.3 trillion ($3.05 billion) at the end of June 2019.
