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NSSF Uganda acquires 2.44% stake in Equity Group

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NSSF Uganda has acquired 2.44% stake in Equity Group from Helios EB in a bid to continue providing a high return to members.

The transaction which is valued at UGX145Billion was approved by the Capital Markets Authority of Uganda, Capital Markets Authority of Kenya, and has been undertaken pursuant to the Capital Markets Act.

The Fund’s MD Mr, Richard Byarugaba throws more light on the investment decision. 

  1. Why did NSSF choose to invest Outside Uganda

The legible opportunities within the country are not enough to absorb NSSF’s investment’s potential. NSSF has invested heavily within the Ugandan Economy and currently holds 20% of traded securities listed on Uganda’s Securities Exchange.

Investing in other Equities markets within the East African region therefore provides an opportunity for diversification of the Fund’s investments but does not imply that the Fund will lose sight of any upcoming lucrative investment opportunities within Uganda.

  1. Why did NSSF choose to invest in Equity Group?

NSSF’s investment in Equity Group is in Line with the Fund’s strategic Plan and will enable the Fund improve its portfolio mix. Currently The Fund’s investment portfolio comprises of 10% Equities, 9% real estate and 81% fixed income, our overall aim is to increase our investments composition in Equities which on average provide a higher return in comparison to the other investments held fixed assets and real estate.

We also specifically selected Equity Group, because Equity Group is a fast growing financial institution within Africa and has registered exceptional performance over time. Since 2000 the Group’s pretax profit has grown at an annual average of 65%. The Group also has a proven track record of value creation for its investors and efficiency in utilization of its assets registering Returns on Equity (ROE) and Return on Assets (ROA) of 27.6% and 4.8% respectively.

Equity Group is also the 2nd Largest Bank in East Africa, with a good track record of successfully establishing subsidiaries across East, west and Central Africa.

We are also impressed by the Groups adherence to good corporate governance practices that have earned it recognition and several awards including Best Bank in East Africa during the ‘2014 Think Business Banking Awards’ and recognition as one of  Kenya’s Top Tax Payers.

  1. How much money has the Fund invested?

The Fund has invested UGX 145 billion.

  1. What is the projected return on this investment?

We cannot speculate the actual figures, but we believe this is a good investment for a long term investor like NSSF. This acquisition is in line with our aggressive yet, prudent investment approach that guarantees a competitive return to our members.

  1. Why the movement into equities?

As explained above, currently, 81% of our investments are in Fixed Income. Fixed income is safe, but if we want to give a more competitive return to our members, we must diversify more into equities, especially regional equities. Investment opportunities in the region such as Equity Group offer us an opportunity for diversification in order to achieve a desirable portfolio mix.

  1. Has the investment been approved by all relevant authorities?

Due procedure was followed in line with our Investment policy and yes we hereby confirm that the investment was approved by the Fund’s Management Investment Committee, the NSSF Board of Directors in consultation with the Minister of Finance, Planning and Economic Development. We also obtained legal advice from the Office of the Solicitor General.

  1. What measures are in place to protect the Fund’s investment in the long term?

This is a listed investment/security which provides for a straightforward exit: the stock is one of the most liquid stocks in East Africa. The company is cross listed in Uganda and Rwanda, and has adopted best practice with regard to Corporate Governance standards.

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Local Business

MTN Uganda contributes Ugx 20 million towards boosting  palliative care in Busoga region

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By Our Reporter

The MTN Uganda foundation has boosted Palliative care activities in Busoga sub region with a shs 20million cash donation.

The donation was handed over to the Executive Director Rays of Hope Hospice Jinja by the CEO MTN Uganda Wim Vanhelleputte during a brief ceremony at the MTN Uganda offices at Nyonyi gardens.

Rays of Hope Hospice is a nongovernmental organisation that provides palliative care to improve the quality of life for people with life threatening illnesses and their families in Busoga region and the neighbouring districts.

“In 2019, 33% of our enrolled women with cancer suffered from cervical cancer and 21% had breast cancer so we started education and screening for early diagnosis and treatment for these two most common cancers in Uganda, but we are limited by financing a the need is very great. So we are grateful to MTN for coming to our rescue and call on others to join the struggle not just in Busoga but the whole country,” explained Sylvia Nakami, the Executive Director Rays of Hope Hospice.

“The absolute poverty and last mile isolation of our clients means ray of Hope Hospice is often our patients last hope for treatment and care making our work immense and a crucial challenge. We can’t do this all on our own but with support from everyone, we can save several lives,” Nakami further explained.

According to the lady, many of the victims are mothers or sexually active people. “If a mother dies leaving her children that will be another problem, that’s why we do everything we can to save the mother or if they don’t make it, at least it will be more dignified.”

Vanhelleputte said he was delighted to work with a partner that puts every cent they get into good use and promised to continue supporting the work of the NGO.

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Huawei applauded for contribution towards improving ICT and innovation in Uganda

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Hon. Rebecca Kadaga Making her remarks at the ceremony

Hon. Rebecca Kadaga making her remarks at the ceremony

By Our Reporter

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The Speaker of Parliament of Uganda Hon. Rebecca Kadaga, has applauded Huawei for their efforts in improving ICT and Innovation in Uganda.

The speaker who was the chief guest made these remarks at a donation ceremony that happened at Kamuli where Huawei handed over assorted equipment.

The donation was handed to Hon. Rebecca Kadaga by Mr. Liujiawei, Huawei Uganda’s Managing Director, in the presence of the LC1, LC5, and the area member of parliament among other leaders.

“On behalf of the government of Uganda, I continue to commend you Huawei for your great contribution to I.C.T and Innovation of this nation. We have indeed proved you as an industry leader because of your efficiency and timely implementation of the various projects and as a government we have a special relationship with you (Huawei). We thank you for your corporate social responsibility initiative that you have exhibited today,” said Hon. Rebecca Kadaga, The Speaker of Parliament of Uganda

“I commend you for the Huawei ICT Academy that skills Ugandans and your intentions to take this program in Busoga University, I encourage you to keep going. I believe that this initiative is not only going to equip I.C.T skills but also create employment, innovation and general economic development,” she added.

Speaking at the ceremony, Mr. Liujiawei, Huawei’s Managing Director expressed his deepest pleasure for the opportunity to give back to the people of Busoga.

“We hope to bring Uganda not only these specific materials, but also, more importantly, the development opportunities for the every Ugandan; Digital skills that bring capabilities
and seize opportunities; the connectivity and a better life for the future,” Mr Liu Jiawei said.

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Local Business

Shell brings cheer to motorists

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Veronica Ndagire, one of the jackpot winners in the recently concluded Shell 10 Weeks of Cheer campaign.

By Our Reporter

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Vivo Energy Uganda, the company that distributes and markets Shell branded fuels and lubricants in Uganda, brought cheer to motorists with exciting rewards in their recently concluded Shell 10 Weeks of Cheer campaign.

The campaign which kicked off in December and ended with February saw customers who spent UGX50,000 at a participating Shell station handed draw coupons requiring them to enter the competition by sending a unique code and their license registration number to 8008 by SMS.

Through weekly draws, 10 lucky jackpot winners walked away with UGX 500,000 worth of fuel each.

“My work involves a lot of field work and we often have to use a car,” Veronica Ndagire,  a sales personnel who was one of the jackpot winners said. “One day, while filling up at a Shell fuel station in Namanve we were given scratch cards, and that is when I started sending messages.”

Ndagire revealed that she was skeptical about the promotion, and could not believe that she was one of the lucky jackpot winners.

“I even thought the promotion was not real and did not believe it when someone from Vivo Energy called me telling me that I had won fuel worth 500K.” She said. “I had almost shrugged it off, and then I received a message reminding me to go redeem my fuel.”

For Kugonza Jennifer, who had learned about the promotion through a friend, she had no doubts when she was told she was one of the winners.

“I was encouraged to participate in the promotion by my friend who had already won free fuel,” Kugoza said. “After sending messages for a week, I was also a winner. They called telling me I had won Ugx 500K worth of fuel.”

“I am really excited to have been one of the lucky winners and because of this I will always be a loyal Shell customer.” She added.

A total of 19,365 customers were rewarded with prizes worth UGX 500M during the campaign. The campaign spread cheer to all regions of Uganda with over 100 Shell stations countrywide participating to ensure convenience for customers across the country.

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Over 19,000 customers rewarded as the Shell 10 Weeks of Cheer campaign comes to an end

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Winners from the Shell 10 weeks of cheer campaign pose for a group photo with Vivo Energy Officials.

Winners from the Shell 10 weeks of cheer campaign pose for a group photo with Vivo Energy Officials.

By Our Reporter

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A total of 19,365 customers have been rewarded with prizes worth UGX 500M in the just concluded Shell 10 weeks of cheer campaign, a national promotion by Vivo Energy Uganda, the company that distributes and markets Shell branded fuels and lubricants in Uganda.

The campaign was announced in December to reward customers during the festive season and infuse extra cheer throughout the holidays and the beginning of the year.

It had a presence across a total of 105 Shell stations countrywide to ensure convenience for customers across the country.

Traversing all regions of Uganda and reaching a total of 24 towns to spread cheer, the campaign held exciting engagements reaching 60,000 customers, 9,000 of whom could not hold back their joy at going home with branded merchandise, fuel vouchers and home grocery packs.

Speaking at a final prize redemption at Shell Bugolobi, Mark Mutungi, the Fuels Brand Manager at Vivo Energy Uganda thanked customers for participating in the campaign.

“Since December, we have celebrated our customers and gifted them for doing business with us. This campaign was for all our customers including boda riders, taxi drivers, private motorists and truck drivers that use Shell fuels, lubricants or shop services.”

Since December, customers who spent UGX50,000 at a participating Shell station were handed draw coupons requiring them to enter the competition by sending a unique code and their license registration number to 8008 by SMS.

“I have consistently been a Shell customer for 10 years and counting. I am glad that my loyalty to Shell has yielded rewards for me. I was happy to be among the lucky winners of the recently concluded promotion,” Umar Mustafa Badola one of the winners said.

In addition to the instant rewards, 10 weekly draws were also held across the country that saw customers win jackpot prizes of fuel worth UGX500,000 and UGX50,000 for motorists and riders respectively.

“I could not believe my luck when I was given fuel worth 500,000 after spending only 50k! I have been smiling all the way to the pump, without needing to worry about budgeting for fuel,” said Veronica Ndagire one of the jackpot winners.

“We would like to thank all our customers who continue to choose Shell. Our customers are at the heart of our business and we look forward to even more opportunities to interact and engage with them as we make life’s journeys better,” Mutungi concluded.

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