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.
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| 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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