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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.

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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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Uganda Breweries contributes 335 Million towards Bududa water project

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Uganda Breweries Limited (UBL) has contributed UGX 335M towards the construction of a water supply system that is aimed at improving access to safe and adequate water in Bududa.

The two-year water project is being implemented in partnership with the Rotary Club of Kampala North. It will see both entities construct a piped water supply system that will serve over 2,000 people in Buwali Sub County and the neighboring communities.

The announcement was made by the Uganda Breweries Managing Director Mark Ocitti at a ground breaking ceremony held at Budei education center on Saturday.

According to a community assessment done by Rotary Uganda, Bududa has insufficient access to clean and safe water as the few spring wells serving the residents are hard to access due to the terrain of the area. In addition the majority of the people in the area have disabilities making it even more difficult for them to reach the water sources.

“We are pleased to be part of a project that will enhance development in the community through provision of basic and essential necessities such as clean and safe water. By constructing a reliable water supply facility in this area, we hope to ease access to clean and safe water, which will ensure a healthier community.” Ocitti said.

Many people in Bududa and the neighboring areas are still lacking access to clean water and other social services.

The BOU Deputy Governor, Dr. Louis Kasekende, who is also the water project’s manager said, “Oftentimes, families have to move long distances to get water from unsafe sources which has posed health risks to them. I am pleased that we are solving some of these issues with this water project that will directly benefit hundreds of people in Buwali Sub County and the neighboring community.”

The Bududa LC5 chairman, Wilson Watira acknowledged Uganda Breweries and Rotary Uganda for their efforts in empowering and developing the region by providing clean and safe water.

Uganda Breweries Limited has in the past years run similar projects. Under the Water of Life initiative, UBL supports projects that help combat water poverty by improving access to clean drinking water and sanitation.

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MTN donates to Old Kampala Mosque and Kisenyi Health Center in Ramadan Drive

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MTN donates to Old Kampala Mosque in Ramadan Drive

By Our Reporter

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MTN Uganda donated an assortment of items to the Old Kampala Mosque and KCCA’s Kisenyi Health Center IV last Friday in a drive aimed at promoting the act of sharing and giving as the Muslim community observes the month of Ramadan.

Items donated included Qurans, tunics and food items such as rice, wheat flour, sugar, salt, cooking oil and juice among others.

Prior to this, MTN Uganda donated similar items to Kibuli mosque and hospital. A similar drive was held in Masaka last week. MTN will reach out to a total of eight mosques and hospitals during this month of Ramadan.

Speaking at the event, Ali Monzer, MTN Uganda’s Chief Information Officer said that MTN was elated to be able to share with the Muslim community in the country.

“Ramadan is about sharing. That is why we are here to share with our brothers and sisters,” Monzer said.

MTN donates to Kisenyi Health Center in Ramadan Drive

In his speech, Sheikh Mouhammad Ali Waiswa, the Deputy Supreme Mufti at the Uganda Supreme Muslim Council thanked MTN for its noble gesture and urged Muslims to renew their faith during this holy month.

“I pray that Allah blesses MTN for its kindness. I also urge the muslims and Ugandans at large to join in and use this month as a point of renewing their faith through prayer and fasting,” said Waiswa.

Edson Mugisha, the Administrator of Kisenyi Health center IV lauded MTN for reaching out to their patients.

“We appreciate MTN’s kindness towards our patients and their caretakers,” said Mugisha.

MTN Uganda has over the years been known for its Ramadan CSR projects as a way of connecting with its Muslim clientele.

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Uganda Breweries partners with Kabaka Foundation to construct sanitation facilities in city markets

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In a bid to improve the sanitation and hygiene that are health concerns in Kampala markets, Uganda Breweries Limited has launched a sanitation project that will see the brewery construct modern public sanitation facilities for the residents and traders of Nakulabye, Katwe, Mengo and Mulago Markets.

The project dubbed the “Kampala City Markets water and Sanitation” has been done in partnership with the Kabaka Foundation, which is an NGO presided over by His Majesty the Kabaka of Buganda. The 3 months project which is part of UBL’s “Water of Life” initiative will cost UGX 300 Million and will benefit over 26,000 people.

Under this project, each Market will get a modern sanitation facility with eights units; a toilet for people with disabilities, a washroom for men and women, three urinal bowls for men, one shared attendants room, a water reservoir of 5000 liters, a 1000 liter over- head tank and a water pump.

Speaking during the ground breaking ceremony at Nakulabye Market, Uganda Breweries Managing Director Mark Ocitti said, “Access to clean sanitation facilities is critical to the health and prosperity of our communities, and yet, too many people especially in the markets around the city do not have access to these basic services. Uganda Breweries is proud to partner with the Kabaka Foundation to reform and improve the lives of more than 26,000 people who live and work around these markets.”

Ocitti noted that this project is not the first done in partnership with the Buganda Kingdom. “UBL and the Kingdom have a long standing partnership to brew Ngule beer, the Kingdoms official beer. The beer is made from cassava and sorghum all of which are sourced locally from Buganda Kingdom.”

In his remarks, Owekitibwa Chris Bwanika, a Trustee in the Kabaka Foundation said, “This project marks another milestone in achieving Kabaka foundation’s aim of improving sanitation. Kampala city markets have dilapidated sanitation facilities and with the construction of these new facilities, we will now be able to address the problem of poor sanitation and the consequent spread of diseases among the residents, especially the children.”

Uganda Breweries Limited has in the past years run similar projects. In 2017, the company constructed public sanitation facilities worth UGX 300 million at Port Bell and Kirombe markets. The project benefits over 12,000 residents, traders and visitors to the two areas. UBL has also previously constructed sanitation facilities in Ggaba market and Kinawataka market.

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