NSSF plans to float share at DSE

The National Social Security Fund (NSSF) plans to float shares in itself, becoming the first pension scheme in Tanzania to do so, the NSSF Director General, Dr Ramadhan Dau, said here on Friday.

Dr Dau
With more than half-amillion membership base and counting, plus the fund’s total value expected to reach 1.3 trillion by June 2012, the NSSF’s proposed bourse is projected to be the largest Initial Public Offering yet to float on the Dar-es-Salaam Stock Exchange market.

But members are already worried because once the NSSF goes public at DSE, it means practically every Tom, Harry and Dick will be free to buy stakes from the country’s largest Social Security scheme. 

Speaking during the just ended, Second NSSF Stakeholders’ conference, held in Arusha and which was attended by nearly 1,000 members from all over Tanzania, they expressed concern that the scheme’s shares will be invaded by wealthy aliens, leaving the original members out in the cold.

The NSSF Director General admitted that once afloat the scheme’s shares will be sold to any Tanzanian as per DSE regulations. However, he assured that the scheme will only float part of its stakes to the public but prior to that it will withhold some for its members.

As for its proposed electricity production plant which is to be built in Mkuranga area of Rufiji, the DG stated that the initial plan to churn out 150 Megawatts is just the beginning because the project is focusing at producing 1,000 Megawatts at the peak. 

The NSSF Director of Planning, Projects and Investments, Mr Yacoub Kidula, said they were compelled to move the proposed 150 Megawatt electricity producing plant from the initially intended location in Dar es Salaam to Mkuranga due to congestion in the Ubungo section of the city.

“The Tanzania Electric Supply Company advised that we establish the power plant in Mkuranga where as it turns out, is an added benefit because now the project is going to serve two purposes,” said Mr Kidula. He pointed out that since Mkuranga is not connected to the National grid, the NSSF plant will play two roles.

The first being to supply electric power through local transmission in the vicinity and the second to build a power plant which is to supplement the country’s electricity needs. The NSSF Director General, Dr Ramadhan Dau, said that for starters, the power plant will be churning out 150 Megawatts.

But production volume is set to increase to 1,000 Megawatts, laying grounds for the formation of the proposed NSSF Electricity Company. NSSF will be earning more than 120 billion/- as income from investments by next June, with contributions from members currently standing at 500 billion/- per year.

The fund spends less than 15 per cent of the total income but invests more that 75 per cent. NSSF, the country’s largest fund, is also a good employer with the number of members of its working staff countrywide reaching 50,000. 

Other proposed NSSF projects include Kigamboni Bridge which is to fly over the Indian Ocean section of Dar es Salaam city, housing projects and tourist hotels in Mwanza City and residential flats in Dar es Salaam.
Source: The Daily News,www.dailynews.co.tz, reported by MARC NKWAME in Arusha
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