The performance of the National Social Security Authority’s (Nssa) investment function has improved, after revenue grew by over 100% in US dollar terms in 2023, the pension manager’s acting general manager, Charles Shava has said.
In an interview with the Zimbabwe Independent, Shava said Nssa’s property portfolio improved by 35% above target during the period, noting that investments into offshore markets were beginning to bear fruit.
He added that the pension fund was expected to play a crucial role in fuelling Zimbabwe’s economic development by investing in projects that create jobs, spur innovation, and promote long-term growth.
“Our 2023 performance surpassed targets as we generated a total of ZWG$57,6 billion against a target of ZW$11 billion.
"In US dollar terms, our income amounted to US$12,14 million, which was 102,03% of the targeted US$11,9 million. The currency split from the financial markets’ portfolio was ZWG$ 16,3 billion and US$7,9 million.
“The other arm, properties, generated just over US$7 million, split as US$1,978,452 in hard currency and US$5 030 850 converted at the prevailing rates upon payment.
"The income target for the property portfolio was surpassed by 35%,” Shava said.
Performance to date indicated that Nssa was on its way to surpass 2023’s achievements.
“Dividend income constitutes the bulk of investment income. We have seen the majority of companies listed on ZSE paying US dollar dividends.
"Our investments in the offshore markets are also paying off, as dividend declarations by the offshore companies improved by almost 20%. This is a significant boost to investment income.
“Given the importance of dividend income on our portfolio and downstream impact on pension benefits, we have adopted an active approach demanding meaningful dividends from investees. This is paying off as seen from improvements in dividend declarations by the investee companies,” said Shava.
Nssa has adopted an impact investment strategy that is designed to benefit members and the economy at large.
The strategy targets sectors such as the agriculture value chain, renewable energy, properties, infrastructure development, manufacturing, as well as the stock and money markets.
"We carefully select opportunities that will have a tangible, positive impact on the economy," he said.
This diversification not only mitigates risk but also allows Nssa to target specific areas of the economy that are in need of capital and investment.
"We are not just passive investors, we take an active role in the companies and projects we support, providing strategic guidance and oversight to ensure they achieve their full potential."
He emphasised that one of the key priorities for Nssa's investment division is job creation.
By channeling funds into enterprises that have strong growth potential, Shava said Nssa aims to stimulate the creation of stable, well-paying employment opportunities across the country.
"Secure, long-term jobs are essential for the financial well-being of Zimbabwean families.
"Our investments are directly tied to our mission of improving the social and economic security of the nation's workers," Shava said.
He said this during a session of the Insurance and Pensions Commission (Ipec)/Nssa Journalist Mentorship Programme for 2024 last week.
Nssa's investment approach is geared towards sustainable, long-term growth rather than short-term gains, he said.
Shava emphasised that the agency's focus on strategic, well-considered opportunities helps to ensure the stability and resilience of the Zimbabwean economy.
"We are not just looking for quick returns, we are invested in building a stronger, more prosperous Zimbabwe for generations to come," he added.
