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OUR BUSINESS

Business Model and value creation aligned to the six capitals

INPUTS

What we need to run our business

Financial Capital

We manage the Fund responsibly and in a profitable manner by making prudent investment decisions.

Intellectual Capital

The Fund’s reputation, institutional knowledge and experience are intangible assets that have been built over time instilling confidence in us among our stakeholders and in Uganda at large.

Human Capital

We attract, develop, enable and retain the best talent. Our people are provided with attractive career paths and training to make them experts in their fields.

Manufactured Capital

This comprises our governance, business processes, building infrastructure, information technology infrastructure and innovation that enable us to manage the organisation optimally.

Social and Relationship Capital

We build on the good relationships we have with our members, employees, the Board, the Ministry of Finance, the Ministry of Gender and Social Development and our regulator, URBRA.

Natural Capital

We use natural resources responsibly and continue to reduce our carbon footprint and water usage, adopting a sustainable approach to waste management.

HOW WE RUN OUR BUSINESS

We create, preserve and defend value by using our resources responsibly to generate value maximising outputs and outcomes for our Members and all stakeholders

Being cognisant of our material matters, while managing key risks and opportunities and our strategic objectives - all underpinned by sound governance.

OUTCOMES - KEY OUTCOMES

What we achieve for our stakeholders

Interest paid to members

12.15%

Customer satisfaction

86%

Staff satisfaction

94%

Customers serviced digitally

94%

Logged customer complaints

87.0%(resolved on first attempt)

Reduction in paper consumption

61.5%

... and ensures our ability to create value in the future.

Apart from creating and preserving value, there are instances where value is diminished through our activities. When making decisions on how to manage our business, we consider the trade-offs between capitals: we aim to maximise positive outputs and outcomes and limit negative impacts.

KEY INPUTS

Financial Capital
  • Members' fund of UGX 15.299Tn (June 2020: UGX 13.062Tn)
  • Cash balance UGX 80.8Bn (June 2020: UGX 26.0Bn)
  • Contributions received UGX 1.367Tn (June 2020: UGX 1.272Tn)

KEY OUTCOMES AND OUTPUTS

  • Fund growth UGX 15.559Tn (June 2020: UGX 13.284Tn)
  • Cost-to-income ratio of 8.9% (June 2020: 10.80%)
  • Cost-of-Administration ratio of 1.06% (June 2020: 1.19%)
  • Interest to members (RoE) of 12.15% (June 2020: 10.75%)
  • Investment in new business initiatives
  • Benefits paid UGX 642Bn (June 2020: UGX 496Bn)
  • 87% of benefits were processed in 13 days (June 2020: 80%)
  • 51% of Employer compliance (June 2020: 55%)

KEY ACTIVITIES

  • Deferrals offered to destressed companies to enable them to manage their cashflows
  • Significant investment in information security and tools to enable remote working

TRADE-OFFS

  • The trade-offs of remote work: Building a more resilient workplace for the post Covid-19 world
  • The trade-offs of contribution collection: Supporting our employers to remain afloat during Covid-19

KEY INPUTS

Intellectual Capital
  • A deliberately shaped, customer-centric culture
  • A strong Brand that resonates with consumers
  • Brand costs of UGX 3.1Bn (June 2020: UGX 2.3Bn)

KEY OUTCOMES AND OUTPUTS

  • Tonality score of 83% (June 2020: 88% )
  • Customer satisfaction rate of 86% (June 2020: 88%)
  • Attraction of specialist skills (Data Science Specialists, Software Developers, and CFAs)

KEY ACTIVITIES

  • Rolled out our e-channels
  • Continuous sensitisation of members to the restrictions imposed by the NSSF Act
  • Marketing and advertising campaigns

TRADE-OFFS

  • No trade-offs

KEY INPUTS

Human Capital
  • 631 staff (June 2020: 566) skilled, customer-centric staff
  • Experienced and ethical leadership team
  • Staff satisfaction and engagement survey
  • Significant investment in learning and development of UGX 1.9Bn (June 2020: UGX 2.8Bn)
  • Employment Equity initiatives
  • UGX 88.9Bn (June 2020: UGX 76.3Bn) paid in salaries and benefits
  • Staff wellness programmes

KEY OUTCOMES AND OUTPUTS

Maintained employee motivation, skills and diversity through:

  • Percentage salary increase for lower staff is equal to Management for the same performance ratings
  • Equity 55% male and 45% female
  • Staff attrition of 3.6% (June 2020: 3.8%)
  • 2020 Mercer Total Remuneration Report for Uganda (salary survey)

Improved people satisfaction levels:

  • 94% (June 2020: 93%) staff engagement score, above the 68% core engagement level for Africa
  • Investment in upskilling employees of UGX 1.9Bn (June 2020: UGX 2.8Bn)

KEY ACTIVITIES

  • Reskilling programmes to address any skills gaps to be able to relocate staff across the organisation
  • Significant investment in staff wellness
  • Continued emphasis on health and safety

TRADE-OFFS

  • The trade-offs of remote work: Building a more skilled work force for the changing business needs

KEY INPUTS

Manufactured Capital
  • Digital channel and innovation spend UGX 1.6Bn (June 2020: UGX 0.9Bn)
  • Infrastructure spend (branches and contact centres) UGX 9.8Bn (June 2020: UGX 5.8Bn)
  • Substantial investment in our Enterprise Architecture UGX 2.3Bn (June 2020: UGX 4.7Bn)

KEY OUTCOMES AND OUTPUTS

  • 94% of our member transactions and interactions were hosted digitally (June 2020: 88%)
  • Uptime of application systems at 99% (June 2020: 99%)
  • Staff efficiently working from home
  • 2.12 million customers (June 2020: 2.05 million)
  • Social media reach of 29.9 million (FY 2020: 12.8million)
  • Payout of benefits 8 days (2020: 7 days)

KEY ACTIVITIES

  • Addressing liquidity challenges posed by the cash flow needs to meet both the investment opportunities and the benefits payment
  • Increasing capability to service customers through digital channels

TRADE-OFFS

  • The trade-offs of benefits TAT: Pay members’ benefits within 8 days in FY 2020/2021 and in 1 day by 2025

KEY INPUTS

Social and Relationship Capital
  • A focus on responsible procurement and supplier development
  • Stakeholder engagement
  • Focused and committed corporate social investment
  • Prioritising commitment to identified SDGs and responsible ESG practices

KEY OUTCOMES AND OUTPUTS

  • Responsible corporate citizen and commitment to SDGs
  • UGX 212.7Bn (June 2020: UGX 177.7Bn) direct and indirect tax contributions
  • Buy Uganda Build Uganda (BUBU) (90% of procurements are with local suppliers)
  • Financial literacy campaigns UGX 0.3Bn (June 2020: 0.2Bn)
  • Compliance with regulatory requirements of the URBRA Act, 2011
  • New membership 7%: (June 2020: 9%)
  • 87% of customers who logged complaints were resolved on first attempt (June 2020: 89.2%)  

KEY ACTIVITIES

  • Feasibility study for affordable housing
  • Increasing stakeholder engagement through virtual channels
  • Establishing new ways to engage in CSR activities for continued sustainability

TRADE-OFFS

  • The trade-offs of affordable houses: Building more affordable houses for our stakeholders

KEY INPUTS

Natural Capital
  • Energy efficiency and management
  • A meaningful contribution to our environmental sustainability, aligned to the national, regional and global development goals
  • Water conservation and waste management

KEY OUTCOMES AND OUTPUTS

  • 19% saving on water consumption (June 2020: 6%)
  • 5% reduction on energy consumption (June 2020: 32%)
  • 61.5% reduction in paper consumption (June 2020: 27%)
  • 100% of the waste from buildings diverted to KCCA pipelines in line with City Council Solid Waste Management Ordinance of 2000

KEY ACTIVITIES

  • Efficient use of resources impacting the environment
  • Addressing potential environmental impacts of real estate projects

TRADE-OFFS

  • No trade-offs