The National Social Security Fund (NSSF), the leading social security provider in Uganda, has today officially commissioned the construction of its shs3.9bn ultra-modern multipurpose commercial building in Mbarara town.
The development sits on the Fund’s 0.43 acres and is planned to be a modern retail and office complex comprising of four floors with a total built-up area of approximately 1,500 m² and parking capacity of up to 40 vehicles.
While inspecting the construction works at the project site, Richard Byarugaba, NSSF Managing Director said that the project reinforces the Fund’s strategy to diversify its investment portfolio. It is also in line with the Fund’s strategy to unlock value of its real estate investments and accelerate growth.
“This project will enable the Fund to continue to diversify its investments thereby minimizing any risks within our asset classes that can impair the Fund’s ability to achieve its investment objectives,” Byarugaba said. The Fund invests in Fixed Income that comprise 76.9% of its total assets, Equity that stands at 15.3% and Real estate at 7.8%.
This is the first investment project that the Fund has undertaken in the Western part of the country and is also the second real estate project developed by the Fund outside Kampala, following the on-going construction of a similar commercial building in Jinja.
“We are aware that Mbarara is the fastest growing town in Uganda today and is the economic hub of the western region with budding businesses. This project will be another symbol of economic growth in this vibrant town.” Byarugaba said.
Construction of the building began mid this year and is expected to be completed by the end of 2018. The project will bring numerous opportunities to the local economy that include provision of office space in a serene neighborhood and market for construction materials in the community. It has also provided employment to hundreds of youth in the district, who currently work at the construction site.
The Mayor Mbarara Municipality Robert Kakyebezi commended NSSF for this development saying, “ We are excited to have one of the biggest financial institutions set up such a development project in our city. I believe it will attract more companies to establish homes in Mbarara and ultimately spur growth of the local economy.”
The other real estate projects currently being developed by the Fund include shs3.3bn commercial building in Jinja , the shs14bn housing project in Mbuya and the recently commissioned 2,741- unit high end housing project in Lubowa. The Fund also plans to set up a 5,000-unit affordable residential housing estate in Wakiso.