HomeNewsNational Social Security Authority avails $180m to local banks

National Social Security Authority avails $180m to local banks

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The National Social Security Authority (NSSA) has availed about $180 million to local banks and has investments in 64 listed counters, the organisation’s general manager said.

There are 78 counters on the Zimbabwe Stock Exchange.

NSSA general manager James Matiza said by end of June the company invested $179 388 202 in local banks which had been distributed to the productive sectors of the economy including the manufacturing sector.

“About 20 financial institutions are handling NSSA funds with limits ranging from $2 million to $18 million depending on the size of the bank,” said Matiza at the just-ended Confederation of Zimbabwe Industries annual congress.

He said loans to the productive sector ranged between $100 000 and $5 million for period of 30 to 365 days. Matiza said NSSA’s money market exposure to banks in December 2009 was $51,9 million and increased to $131,2million in December last year.

“If we are to recall that money, a number of small banks would close doors,” Matiza told said.

“NSSA has 10% or more in the following companies Africom Continental 43,1%, FBC Building Society 40%, ZB Financial Holdings 37,9%, Nicoz Diamond 29%, Fidelity 27,4%, FBC Holdings 26,4%, Starafrica 24,1%, AICO 22,1%, Zimre Holdings 19,2%, OK Zimbabwe 18,4%, Interfin Financial Service 17,4%, RTG 12,87% and CBZ 11,6%.”

“As at the end of May, the parastatal’s balance sheet had $443 908 525.”

Matiza reassured business leaders that despite its strong financial position the government had not interfered in its day-to-day operation to stifle private sector participation.

“It is also feared that since social security schemes are closely linked to government the funds could be used to control private sector therefore restricting decision-making by private sector participants,” he said.

“The other school of thought is that social security funds should be used in economic development. This group argues that a developed economy creates jobs, improves salaries and creates goods and services which the retirees need for their livelihood. Zimbabwe falls into this group,” he said.

The National Social Security Authority Act (Chapter 17:04) of 1989 provides for the investment of surplus funds in sound, acceptable and viable investments.

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