National Social Security Authority

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National Social Security Authority
NSSA Logo
NSSA Logo
AbbreviationNSSA
MottoFor care and Protection
Formation1989 (1989)
TypeGovernmental organization
PurposeSocial Security
HeadquartersNSSA House,
Selous Avenue/2nd Street, P.O. Box CY 1387, Causeway
ServicesSocial Security Services
Parent organization
Ministry of Labour and Social Welfare
SubsidiariesNational Building Society
Websitewww.nssa.org.zw

The National Social Security Authority is Zimbabwe's social security company which was established in 1989 in terms of the NSSA Act of 1989, Chapter 17: 04, an act of parliament. The firm administers social security public funds on behalf of about 1,3 million contributors.

NSSA administers two schemes: Pension and Other Benefits Scheme and Accident Prevention and Workers’ Compensation Scheme.

NSSA pays pensions to about 180,000 members.[1]

In July 2019, NSSA's Forensic Audit Report for the period January 2018 to February 2019 was released. Read Full article here: NSSAgate Corruption Scandal

Investments[edit]

NSSA has a number of non-performing investments which have cost contributors millions and span various sectors, including deposits in non-performing indigenous banks, listed companies and non-profitable properties.

NBS Bank[edit]

The National Building Society is wholly owned by NSSA and was established in 2016.

Capital Bank[edit]

Nssa invested at least US$30 million in Capital Bank after the government of Zimbabwe declared that the investment was in the national interest. Capital Bank was under curatorship when NSSA made the investment. NSSA became an 86% shareholder in the bank. The bank never recovered from its problems even with the NSSA investment.

Capital Bank eventually shut down in 2013 but NSSA benefited from the investments that Capital Bank itself had made in First Mutual Life, Renaissance Merchant Bank and Pearl Properties.

FBC and FBC Building Society[edit]

NSSA currently owns 35% of FBC Holdings, parent company of FBC Bank and FBC Building Society.

Genesis Bank[edit]

Nssa had more than US$750 000 in Genesis Bank, which collapsed in 2012.

Interfin[edit]

Nssa had an unsecured US$15 million deposited with Interfin Banking Corporation, which closed down in 2012 after abusing depositors’ funds and was later placed under liquidation. The authority also owned 10,02% of Interfin Financial Services, the parent company of Interfin Banking Corporation.[2]

Telecel[edit]

In 2016 NSSA bought a stake in Telecel Zimbabwe from Vimpelcom. NSSA paid $30 million for a 60% stake in Telecel on behalf of ZARnet, a Zimbabwe government owned internet service provider. According to the NSSA chairman then, the transaction was “a quasi-equity participation funding which gives the equity control of Telecel International Limited to NSSA until certain conditions precedent are met by ZARNet” He also said that NSSA would emerge with a significant share of Telecel, in all circumstances.[3]

References[edit]

  1. NSSA suspends 40,000 pensions… Pensioners fail to receive April payouts, The Herald, Published:April 16 2016, Retrieved: 15 April 2017
  2. Taurai Mangudhla, Fears abound as bungling Nssa eyes fresh investments, Zimbabwe independent, Published:2 April 2015, Retrieved: 9 May 2016
  3. LSK NSSA speaks on Telecel deal: It’s about the cashflow & mobile money for pensions, Techzim, Published:30 April 2016, Retrieved:18 May 2016