Quick Overview of the Tanzanian National Social Security Fund (NSSF)
The National Social Security Fund (NSSF) is the Tanzanian government agency tasked with the collection, responsible investment, safekeeping, and distributing retirement benefits of workers in all sectors of the economy who are not included in the pension schemes of the government. The country has two other organizations of pension funds; the Parastatal Pension Fund for all government parastatals employees and the Public Service Pensions Fund for all workers directly under the government.
The NSSF was formed in 1997 after the collapse of the National Provident Fund (NPF). All employers in the country are covered by the NSSF and participation of both employees and employers is mandatory. It is both a provident and a pension fund.
History
The social security scheme started back in 1964 when NPF handled all social security issues. The National Provident Fund Act was created in 1964 followed by an amendment in 1968. In 1997, the NPF became dysfunctional and was replaced with the NSSF by the 1997 act No. 28.
Corporate Affairs
Management and Ownership
NSSF is fully owned by the Tanzanian government and is among the country’s four social security funds. The other social security funds are the Public Service Pension Fund, the Parastatal Pension Fund, and the Local Authority Pension Fund. All the finances were initially limited to different sectors of the workforce. However, the 2000s saw the liberalization of regulations and all funds being ordered to enroll workers in both the informal and formal sectors.
Board Members
The fund is under the management of a twelve-member board, excluding the director-general. All members of the board have to be nationals of Tanzania, and no member of the board may hold an executive position. There are three specialized communities on the board which manage operations: the Audit Committee, the Staff Committee, and the Investment and Finance Committee.

Business Trends
Most of the revenue of NSSF comes from employer and employee contributions. The scheme is mandatory and is funded by contributions of 20% of the salaries of the employees, with the employees and the employers both paying half of it.
The crucial NSSF trends for 2007 to 2011 are listed below ( as of June 30):
2007 | 2008 | 2009 | 2010 | 2011 | |
Amount Collected (Tshs Mil) | 162,379 | 205,385 | 255,271 | 300,089 | 356,512 |
Benefits Paid (Tshs Mil) | 50,522 | 81,818 | 85,120 | 110,135 | 136,596 |
Registered Employers | 408,970 | 447,797 | 475,993 | 506,218 | 521,629 |
Registered Employees | 14,927 | 15,560 | 16,592 | 17,666 | 18,779 |
Headquarters
The head office of the NSSF is located in Dar es Salaam at Benjamin Mkapa Pension Towers. The building was initially called Mafuta House. The agency has an office in all regional capitals and all main cities.
Investment
Investment Portofolio

The investment policy of the NSSF requires it to invest 75% of its annual resources. Traditionally, the fund invests in fixed deposits, government securities, loans, corporate bonds, real estate, and equities. The majority of the investments are in government securities and loans and a big percentage of earnings is obtained from interests. Recently, the agency has taken on multi-billion construction projects in different regions of Tanzania and has begun investing heavily in real estate.
Investment Portfolio of NSSF 2006/07 – 2010/11
Investment (Tshs Million) | 2006/07 | 2007/08 | 2008/09 | 2009/10 | 2010/11 |
Corporate Bond | 12,755 | 10,804 | 8,054 | 6,418 | 800 |
Fixed Deposits | 35,545 | 68,298 | 145,292 | 180,963 | 161,711 |
Loans | 117,315 | 182,251 | 283,949 | 386,763 | 453,403 |
Equity | 96,911 | 61,047 | 62,988 | 69,303 | 77,999 |
Real Estate | 108,292 | 182,908 | 198,558 | 200,440 | 251,538 |
Government Securities | 159,832 | 164,969 | 158,838 | 185,316 | 271,171 |
Total Investment | 530,652 | 670,280 | 857,681 | 1,029,206 | 1,216,624 |
Major Real-Estate Projects
Kigamboni Bridge
The bridge is a venture jointly undertaken by the NSSF(60%) and the Tanzanian Government(40%). It is 680 metres long and links Kigamboni to Kurasini in Dar es Salaam. Moreover, the funds involve upgrading the surrounding highway infrastructure to minimize congestion. The bridge is approximated to cost $140 million, with operations set to begin in early 2016. It will have a toll plaza and is the first toll road in Tanzania. NSSF’s goal is to recoup its investment via toll booth collections.
Dege Ecovillage
The village is among the biggest investment projects undertaken by NSSF. The satellite township is situated in the Kigamboni area and covers 300 acres. The estate will have an excess of 7000 homes and is projected to be finished in 2017. It will also have supermarkets, schools, various amenities, and security infrastructure. The project is a joint investment between the NSSF and Azimino Estate Housing Limited and is worth $544.
NSSF admitted to fraud in 2016 for the project.
For more articles related to the Government of Tanzania and the Society (Community), click here!