The National Social Security Authority (NSSA) is working on a strategy for its investments in the banking sector which might see it divesting from some entities or consolidations.
BY NDAMU SANDU
NSSA board chairperson, Robin Vela told NewsDay yesterday the strategy was still work in progress, but “all I can say to you is certainly we do not believe that our holding will be the same at the end of the year”.
“Our holdings in 10 different banks will not be the same at the end of the year. There is a strategy that we are trying to roll out … which talks to say: Is it appropriate for NSSA to have 10 banks, 10 insurance companies? As a shareholder, we are the ones who are suffering because we have got our capital competing against each other and we have got to change that,” he said.
“We are saying we shouldn’t have invested in 10 banks, 10 insurance companies. We want to try and streamline our involvement in some of these companies.”
NSSA has shareholding in banks such as FBC, ZB, CBZ and National Building Society. It also has shareholding in First Mutual Holdings, Zimre Holdings Limited, Nicoz Diamond and Fidelity Life, among others.
In addition, NSSA lost millions in banks that have collapsed since the beginning of the multicurrency regime in 2009.
Vela said no “option is off the table from diversification to consolidations to exiting”.
“None of that is off the table. But it will be done for value for pensioners. We will invest the money; we are not looking for cash,” he said.