NSSF Marks 4 Years of Growth Under Samia Leadership

NSSF Celebrates Four Years of Operational Success Under President Samia

Friday, March 21, 2025

The National Social Security Fund (NSSF) has lauded its remarkable progress in strengthening social security services across Tanzania, aligning its achievements with four years of transformative leadership under President Samia Suluhu Hassan.

Speaking on behalf of the institution, NSSF Director General Masha Mshomba highlighted the Fund's strategic expansion, enhanced member outreach, and robust investment portfolio. He affirmed that NSSF has significantly advanced social security services, especially within the private and self-employed sectors, during President Samia’s first term in office.

“We commend Her Excellency President Samia Suluhu Hassan for steering the country toward sustainable development. Her leadership has opened new avenues for national growth, and NSSF has greatly benefited through member registration and contribution collection,” said Mr. Mshomba.

Membership Growth and Contribution Surge

From March 2021 to February 2025, NSSF registered 1,052,176 new members, mostly from the private and self-employed sectors. Contribution collections rose significantly, with the Fund collecting a total of TSh 6.99 trillion, reflecting a 90% increase in monthly collections—from TSh 1.13 trillion in February 2021 to TSh 2.15 trillion by February 2025.

The Fund's total value also surged by 92%, rising from TSh 4.8 trillion in February 2021 to TSh 9.2 trillion in February 2025.

Enhanced Fund Stability and Tax Compliance

A financial sustainability assessment showed that the Fund’s resilience stood at 90.7% by June 2023, up from 87.7% in June 2020. Additionally, NSSF contributed TSh 380 billion in government taxes—an average of TSh 75 billion annually. The Tanzania Revenue Authority recognized NSSF with a national award for voluntary tax compliance for the fiscal year 2023/24.

Increased Pension Benefits and Retiree Welfare

Over the past four years, NSSF disbursed TSh 3.10 trillion in member benefits, marking a 69% increase in annual payouts—from TSh 537.08 billion in February 2021 to TSh 909.16 billion by February 2025.

Following policy reforms in July 2022, retirees’ lump-sum benefits were increased from 25% to 33%, and later adjusted again to 35%. The Fund is currently finalizing plans to raise the minimum monthly pension from TSh 100,000 to TSh 150,000, with other pension levels expected to rise by between 2% and 20%.

Service Improvement and Digital Transformation

As part of its ongoing modernization efforts, NSSF has enhanced digital access to services. It opened new service zones in Ubungo and Kigamboni (Dar es Salaam) and upgraded offices in Mkuranga, Hai, and Mbezi Beach to district-level status.

“ICT utilization within the Fund’s operations rose from 48% in February 2021 to 87.5% by February 2025, and we aim to achieve 100% digitalization by June 2025,” Mr. Mshomba said.

Strategic Investment: Mkulazi Sugar Factory

NSSF, through its subsidiary Mkulazi Holding Company Ltd, completed the construction of the Mkulazi Sugar Factory in Kilosa, Morogoro. The factory was inaugurated by President Samia on August 7, 2024, following the start of sugar production in July 2024.

As of February 2025, the factory had produced 19,124 tonnes of household sugar for the domestic market and created 8,302 jobs, including 1,665 direct and 6,637 indirect positions. Full-scale production is expected to generate over 11,315 jobs. The project also plans to produce 15 megawatts of electricity, with 7 megawatts expected to feed into the national grid via Msamvu substation in Morogoro.

Resolving Longstanding Issues in Kigamboni

The government’s decision to revise toll fees at the Nyerere Bridge in Kigamboni has eased public concerns. A new bundle payment system offers reduced rates, contributing to increased monthly revenue—TSh 1.89 billion in February 2025, up 66% from TSh 1.13 billion in February 2021.

Reviving Stalled Investment Projects

Mr. Mshomba confirmed that five previously stalled projects—Dungu, Toangoma, Kijichi III, Mzizima, and Mwanza Tourist Hotel—which had been on hold between 2016 and 2021 for audit reasons, are now back on track. Investor engagement and contractor resolution have enabled work to resume, with project completion expected between June 2025 and June 2026.

Voluntary Scheme for Self-Employed Citizens

In alignment with the 2020–2025 CCM Election Manifesto and Article 11 of the Tanzanian Constitution, NSSF continues to expand social protection for self-employed citizens.

Through the “Hifadhi Scheme,” self-employed individuals—from farmers and fishermen to food vendors and boda-boda riders—can now access social security benefits. As of February 2025, 437,319 members had joined the scheme, benefiting from retirement pensions, health, maternity, disability, and survivor benefits. The scheme is set for formal launch in April 2025.

NSSF also launched the “NSSF Staa wa Mchezo” campaign to promote the Hifadhi Scheme. Enrollment is made simple through USSD code *152*00#, allowing flexible contributions starting from TSh 30,000, either daily, weekly, monthly, or seasonally.

Long-Term Strategic Goals

Looking ahead, NSSF has outlined several long-term objectives:

• Grow the Fund's value beyond TSh 11 trillion by June 2026, more than double its value in June 2021.
• Explore high-yield, low-risk investments, including East African and SADC capital markets.
• Strengthen ICT systems to deliver efficient, member-centric services.
• Fully implement the “Hifadhi Scheme” to broaden national social security coverage.

Acknowledgment and Final Remarks

Mr. Mshomba extended heartfelt appreciation to all employers and members for their continued trust and cooperation, acknowledging them as key contributors to the Fund’s success.

“I thank the Sixth Phase Government led by President Samia Suluhu Hassan for fostering an environment that promotes investment, employment, and membership growth. I also acknowledge the support from the Prime Minister’s Office, the Ministry of Finance, the President’s Office – Public Service Management and Good Governance, ATE, TUCTA, eGA, the Treasury Registrar, and the Bank of Tanzania.”

He urged all employers to adhere to labor laws by remitting employees’ contributions promptly, ensuring timely pension payments.