NSSA keeps focus on sustainable investments
THE National Social Security Authority (NSSA) is forging ahead with investment projects meant to secure the sustainability of its benefit schemes and foster economic development in line with targets under the National Development Strategy 1 (NDS1) and Vision 2030.
NDS 1 is the first five-year national development plan towards Vision 2030, of an empowered upper middle-income society envisaged by President Mnangagwa, which leaves no one and no place behind.
Under the first five-year development agenda running from 2020 through 2025, the targeted areas include economic growth and stability, food and nutrition security, governance, human capital development and environmental protection.
Other key targets entail housing delivery, digital economy, health, infrastructure development, international engagement, and re-engagement drive, social protection and devolution. NDS1 will be superseded by a similar economic development policy — NDS2 to run between 2026 and 2030.
Presently NSSA administers two schemes — the Pension and Other Benefits Scheme (POBS) and the Accident Prevention and Workers’ Compensation Scheme (APWCS).
The authority has also put in place a revolving loan scheme specifically for pensioners to allow them access to loans at concessionary rates for self-help projects. To date, more than 8 000 pensioners have benefited from the revolving loan facility, which NSSA believes goes a long way in ensuring beneficiaries improve their livelihoods through various projects.
Responding to written questions from The Herald Finance & Business, NSSA spokesperson Mr Tendai Mutseyekwa said the Government had prioritised the extension of social security coverage to the informal economy as espoused in NDS1 and thus efforts are underway for the authority to extend coverage to the informal sector.
He said the NSSA’s investments were guided by and aligned with the Government’s vision and goals Vision 2030 and NDS1.
“The investments are meant to guarantee the sustainability of our schemes for the benefit of members, while also stimulating economic development — job security, job creation and productivity.
“Our investments are well diversified across all critical sectors that include social and economic infrastructure, health, water and sanitation, housing delivery, renewable energy, agriculture and agriculture value chains, real estate, manufacturing, banking and insurance.
“We focus on economic infrastructure, social infrastructure, job creation, sustainable future, poverty reduction, empowerment, SME funding, solving social problems, and contributing to economic development in line with the aspirations of NDS 1 and Vision 2030.”
And within the confines of the law, Mr Mutseyekwa said, NSSA has also invested offshore to mitigate against geographical risk.
The authority’s investments also target assets that preserve value by providing for real growth that surpasses the inflation and growth in benefit obligations over time (expect capital gain/growth on investments).
Asked about the operational overview and strategic direction that NSSA has undertaken to align itself towards improving social security to Zimbabweans, Mr Mutseyekwa said: “Our mandate is to provide social security to all members and their dependants in the event of any of life risks such as sickness, injury or death.
“To that end, employers are encouraged to register their businesses and ensure compliance with statutory obligations that enable fulfilment of our mandate to pay out benefits.
“Contributors also have a responsibility of updating their employment history to facilitate clean data which is key when claiming benefits.
“NSSA is also the custodian of occupational safety and health ensuring a zero tolerance to injuries at work.”
Secondly, he said NSSA navigates a delicate balance between providing adequate benefits and safeguarding the fund’s long-term viability and thus careful investment management and continuous evaluation of contribution rates are crucial in this regard.
“By prioritising financial health, NSSA can ensure the fund’s ability to deliver on its promises to future generations. However, the ever-evolving economic landscape necessitates continuous adaptation and strategic management to ensure the long-term effectiveness of social security in Zimbabwe.”
NSSA prioritises ensuring timely pension payouts through streamlined processes, innovative solutions, and transparent communication on claiming procedures and payment dates. The introduction of the omnichannel contact centre serves as an example of NSSA’s exploration of innovative solutions.
This, Mr Mutseyekwa said, allows pensioners to conveniently inquire about their pensions and potentially resolve any issues related to payouts, reducing delays and frustrations.
“The marketing team carries out outreach campaigns in both rural and urban settings to ensure ample information is disseminated to educate both contributors and beneficiaries on the available benefits.
“NSSA has six regional offices across the country and more than 20 sub-offices to ensure accessibility and that there is proximity for our stakeholders,” he said.
Over the years, the number of pensioners registered under NSSA has been growing with the figure currently standing at 240 947 compared to 237 475, last year and 210 701 in 2022.
“The steady rise in pensioners underscores the growing importance of a robust NSSA, with sufficient resources to meet benefit obligations. We will need to ensure NSSA’s financial health can accommodate this growth.
“This will involve careful management of contributions and investments, aided by an enabling policy environment.”-herald
