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NSSA reaps rewards from FBC shares

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THE National Social Security Authority (NSSA) says it expects positive returns from its shares in FBC Holdings and to deliver value to the economy especially on the housing stock.

BUSINESS REPORTER

In a statement yesterday, NSSA said it has derived positive return on its investment, through capital gains and dividend income in FBC Holdings. The authority holds 35% stake in the listed entity.

“FBC share price has delivered 858% since March 2009, against a relative benchmark of 185%. At the same time the company has declared dividends amounting to $4,5 million,” the authority said.

NSSA partnered FBC in its housing projects that include Rusike and Glaudina which have 699 stands and 394 stands respectively.

“The significance of this investment is that continued positive contributions towards increasing the national housing stock in line with Zimbabwe Agenda for Sustainable Socio-Economic Transformation blueprint can be expected,” the statement read.

The country has a 1,2 million housing backlog which needs to be met through the construction of more housing units country wide. The authority between 1994 and 2000 has been financing housing projects through building societies’ paid up permanent shares. The authority through the initiative developed houses in Chegutu, Shamva, Norton, Kuwadzana in Harare and Cowdray Park in Bulawayo and 22 low density Woodlands town houses in Bulawayo.

NSSA is a majority shareholder in Capital Bank which has been downgraded to a microfinance institution. The authority said the financial support it has extended to the sector has brought stability and confidence in the banking sector.

Last year, business lobby group Confederation of Zimbabwe Industries queried NSSA investments in the financial services sector.

The authority is currently constructing new offices at Ximex Mall in Harare and Gwanda Mall, among other projects countrywide.

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