Our Business
Material matters
Material matters are issues that could significantly impact our ability to create value in the short, medium, and long term. These matters influence our strategy, how we manage associated risks, and the opportunities we explore as a result. The process we follow to determine our material matters is as follows:
| Process | Method | Stakeholders Engaged |
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| Process Identify
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Stakeholder Engaged
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Process
Prioritise
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| Process Define Strategy & Targets
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Stakeholder Engaged
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Our materiality process has prioritised the following themes. While the material themes identified last year remain relevant, this report highlights how these issues have evolved over the past financial year.
1. Regulatory restrictions
What it means to NSSF
In the previous reporting period, we highlighted that regulatory restrictions limited our ability to expand our product offering. During the year, notable progress was made. The law was amended to give the Board greater flexibility to design and approve new benefits and products. This enabled the launch of the Smartlife Voluntary Scheme, a significant milestone in broadening our offerings. While regulatory constraints still exist, they have reduced, and we continue to work closely with regulators to further expand the range of services available to our members.
Short-term mitigation response
Building on the momentum of Smartlife Flexi, we are preparing to launch the Smartlife Fixed Term Plan, a goal-based savings product with added medical, sickness, and disability benefits. These initiatives reinforce our commitment to expanding voluntary savings options and strengthening members’ long-term financial security.
Long-term mitigation response
To align with our mission of promoting savings as a lifelong habit, NSSF is developing and rolling out several new products over the medium to long term. The overarching goal is to provide comprehensive social protection by progressively covering all risks outlined in ILO Convention 102, addressing members’ needs across the entire life cycle.
Opportunities and impact on the business model
- Strong foundation for membership growth: With 27,194 members already enrolled in our voluntary savings product and more than 161,000 transactions recorded, amounting to savings of UGX 17.2Bn, there is demonstrable demand for flexible savings solutions. Once the supporting regulatory framework is finalised, this foundation presents a significant opportunity to scale and attract even more members
- Expanding outreach and inclusion: The success of the Smartlife Flexi Savings Plan underscores the potential of new products to drive outreach, particularly among Ugandans in the informal sector. These innovations are key to advancing our goal of making saving accessible, inclusive, and relevant to a broader segment of the population
Targets
- Accelerate membership growth: Recruit at least 700,000 new members, with a strong focus on voluntary savers and individuals in the informal sector
- Product innovation: Launch the Smartlife Fixed Savings Plan, a new voluntary savings product that includes a medical benefit, further expanding the Fund’s value proposition and supporting members’ financial and health resilience
Capitals
Risks
2. Strategic execution of Vision 2035
What it means to NSSF
The ambitious goals of Vision 2035 are critical to NSSF's long-term sustainability. As our membership base ages and begins accessing benefits, new contributions may not keep pace, potentially impacting the Fund’s sustainability. To mitigate this risk, we will focus on three key areas:
- Maximise contributions: By creating compelling incentives to increase willingness and capacity to save, which will attract new members
- Maximise earnings within our risk tolerance: By diversifying the asset portfolio via a new stream of alternative investments
- Maximise value to members: Through life-time value products that encourage member retention beyond retirement
Short-term mitigation response
Strategic initiatives and growth drivers:
- Enterprise and Growth Department: A specialised department whose focus is to accelerate mass member recruitment, having already secured 128,000 new members through targeted & strategic partnerships
- Hi-Innovator programme: Trained 81,073 entrepreneurs, funded 438 businesses, and created 202,323 jobs in its first five years. Phase 2 will expand support over the next five years
- Culture and performance alignment: Refined organisational values to embed a high-performance culture that supports Vision 2035 ambitions
- Financial literacy expansion: Broadened outreach to promote saving and responsible financial management, driving inclusion and long-term security
Long-term mitigation response
The Fund will develop programmes to expand membership, focusing on:
- Targeted initiatives to enrol the under-served agricultural workforce
- Expanding outreach to informal sector communities through tailored partnerships
- New value-adding benefits, such as health insurance, for broader social protection
Opportunities and impact on the business model
- Innovative investment approaches: Rethinking our investment strategies to address long-term societal issues such as unemployment and affordable housing
- Economic stability: Increasing domestic savings to significantly impact Uganda's economic stability
Targets
- Set up a venture fund as part of the alternative asset class offering, focusing on social impact to establish a more sustainable model for the Hi-Innovator programme
- Finalise the establishment of the National Marketing Company (NAMCO) with the aim of improving farmers' livelihoods by granting them access to markets with advantageous pricing, thereby empowering them with increased earnings to save
Capitals
Risks
