National Social Security Fund (Tanzania)

The National Social Security Fund (NSSF) is the government agency of Tanzania responsible for the collection, safekeeping, responsible investment, and distribution of retirement funds of all employees in all sectors of the Tanzania economy that do not fall under the governmental pension schemes. There are two other pension fund organizations in the country; the Public Service Pensions Fund for all employees working directly under the government and the Parastatal Pension Fund for all employees working under governmental parastatals.[3][4]

The NSSF was founded in 1997 as the successor to the defunct National Provident Fund (NPF). NSSF covers all other employers in the country and participation for both employers and employees is compulsory. NSSF is both a pension fund and a provident fund.[5]


The social security scheme dates back to 1964 where all social security issues were handled by the NPF. The National Provident Fund Act was enacted in 1964[6] and amended in 1968.[citation needed] The NPF became defunct in 1997 and the Act of Parliament No. 28 of 1997 replaced the NPF with the NSSF.[7]

Corporate affairs

Management and ownership

The company is entirely owned by the government of Tanzania and is one of the four social security funds in the country. The others are the Parastatal Pension Fund, the Public Service Pensions Fund, and the Local Authority Pension Fund.[8][unreliable source?] All the funds formerly were limited to separate sectors of the workforce; however, the regulations were liberalized in the early 2000s with all funds being authorized to enroll any employees in the formal and informal sector.[4]

Board members

The NSSF is managed by a board of twelve members, not including the director general. All board members must be Tanzanian nationals, and none of the board members may hold executive positions. The board has three specialized committees to manage operations: the Finance and Investment Committee, the Audit Committee, and the Staff Committee.[2]

Business trends

A majority of NSSF’s revenue comes from employee and employer contributions. The program is a compulsory scheme and is financed with a contribution of 20 percent of employees’ salaries, with half of that paid by employers and the other half paid by employees.

The key trends for NSSF for 2007-2011 are shown below (as at year ending 30 June):

2007 2008 2009 2010 2011
Registered Employees 14,927 15,560 16,592 17,666 18,779
Registered Employers 408,970 447,797 475,993 506,218 521,629
Amount Collected (TZS Mil) 162,379 205,385 255,271 300,089 356,512
Benefits Paid (TZS Mil) 50,522 81,818 85,120 110,135 136,596
Notes [9] [10] [10] [2] [2]


The NSSF head office is at the Benjamin Mkapa Pension Towers in Dar es Salaam. The building formerly was named the Mafuta House. NSSF has an office in all major cities and all regional capitals.


Investment portfolio

Composition of NSSF Investment Portfolio as at 30 June 2011

Loans (37%)

Government Securities (22%)

Real Estate (21%)

Fixed Deposits (13%)

Equity (7%)

The NSSF’s investment policy requires the fund to invest 75 percent of its total annual sources. The fund traditionally invests in government securities, fixed deposits, corporate bonds, loans, equities, and real estate. Most of the investments are in loans and government securities and a large percentage of the income comes from interest collections. Recently, the NSSF has begun to invest heavily in real estate and have undertaken multi-billion shillings construction projects in various parts of the country.

NSSF Investment Portfolio 2006/07 – 2010/11[2]

Investment Category (TZS Million) 2006/07 2007/08 2008/09 2009/10 2010/11
Government Securities 159,832 164,969 158,838 185,316 271,171
Fixed Deposits 35,545 68,298 145,292 180,963 161,711
Corporate Bond 12,755 10,804 8,054 6,418 800
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
Total Investment Base 530,652 670,280 857,681 1,029,206 1,216,624

Major Real-estate Projects

Kigamboni Bridge

The Kigamboni bridge is a joint venture between the Government of Tanzania (40%) and the National Social Security Fund (60%). The Bridge is 680m long and connects the Kurasini in Dar-es-salaam to Kigamboni. Furthermore, the money will involve upgrading of the nearby highway infrastructure to reduce congestion around the bridge. The bridge is to cost $140 million and will be operational early 2016.[11] The bridge will contain a toll plaza and will be the country’s first toll road. The Fund aims to recover its revenue through toll booth collections.

Dege Eco Village

Dege eco village is one of the largest investment projects conducted by NSSF. The satellite township is located in the Kigamboni area and covers an area of 300 acres. The state-of-the-art estate will house over 7000 homes and is anticipated to be completed in 2017. The estate will not only have homes but have schools, supermarkets, security infrastructure and various amenities. The investment project is worth $544 million and is a joint venture between the fund and Azimino Estate Housing Limited.

In 2016 NSSF admitted fraud in the giant project.[12][13]


  1. ^“NSSF to invest heavily in coffee, cotton, cashewnut processing in three regions”. IPP Media. IPP Media. 4 June 2015. Retrieved 28 December 2015.
  2. ^ Jump up to:ab c d e “NSSF 2010/2011 Annual Report”. NSSF. Retrieved 28 December 2015.
  3. ^“About Us – PPF Pensions Fund”. Archived from the original on 25 April 2015. Retrieved 28 December2015.
  4. ^ Jump up to:ab “About Us – The Public Service Pensions Fund”. Retrieved 28 December 2015.
  5. ^“National Social Security Fund – Overview”. Retrieved 28 December 2015.
  6. ^“The National provident Fund Act 1964” (PDF). Government of Tanzania. 1964. Retrieved 28 December 2015.
  7. ^Mdoe, Giza (20 August 2014). “NSSF launches scheme for Tanzanians in Diaspora”. Retrieved 28 December 2015.
  8. ^“DISCUSSION QN: QN. What are the following; NSSF, LAPF, PPF, and PSPF?”. Retrieved 28 December 2015.
  9. ^“NSSF Annual Report 2006-2007”. NSSF. Retrieved 28 December 2015.
  10. ^ Jump up to:ab “Annual Report 2007/08”. NSSF. Retrieved 28 December 2015.
  11. ^“Mkapa lauds Kikwete on Kigamboni bridge”. Retrieved 28 December 2015.
  12. ^Mtulya, Athuman (27 October 2016). “Tanzania: NSSF Admits Fraud in Giant Sh1.4 Trillion Satellite City Project” – via AllAfrica.
  13. ^“JK applauds of Kigamboni satellite township model”. IPP Media. 7 July 2014. Retrieved 28 December 2015.

Ofer Abarbanel – Executive Profile

Ofer Abarbanel online library

Ofer Abarbanel online library

Ofer Abarbanel online library