HomeBusiness DigestNssa to set up a building society

Nssa to set up a building society

THE National Social Security Authority(Nssa) will set up its own building society by the end of June this year, businessdigest has learnt.

Kudzai Kuwaza

In an interview with businessdigest on Tuesday, Labour minister Prisca Mupfumira said this will help home-seekers get cheaper mortgage rates than they are currently securing at other banks which are charging prohibitive interest rates.

“The process for Nssa to establish a building society is at an advanced stage,” Mupfumira said.

“I am expecting it to happen in this first half of the year. I am waiting for approval from the Reserve Bank of Zimbabwe (RBZ).”
She said the building society will help home-seekers nationwide to receive mortgages at affordable rates and benefit ordinary Zimbabweans who contribute to Nssa.

Mupfumira said the Nssa board will be tasked to look into various issues affecting the authority, especially its investment portfolio.

Investments by the authority have come under heavy criticism for throwing workers’ contributions down the drain through unsuccessful projects which include the failed Capital Bank.

“We are in the process of getting a board which will look at the investments. Is the (Nssa) investment policy benefitting the worker? Is it developmental? These are the issues the board will look at,” Mupfumira said.

She said the nine-member board, which she expects to be appointed by the end of this month, will comprise three members representing workers, three representing employers with the other three representing government.

“I want a board of competent people who are free of questionable backgrounds and if possible, these should be fresh faces, not those who have been continuously recycled,” she said.

Mupfumira said she had turned down several nominations proposed to her to be members of the board as they did not have the qualifications needed to look into the issues affecting Nssa.

Meanwhile, the minister said she would within the next two cabinet meetings present the principles of the tripartite negotiating forum (TNF) as part of the process of making the forum a legal entity.
She said the principles, once approved by cabinet, would be drafted into a bill to be presented to parliament.

The TNF is a social dialogue platform that brings together government, business and labour to negotiate over key socio-economic matters. It has been in existence since 1998 as a voluntary and unlegislated chamber in which socio-economic matters are discussed and negotiated by the social partners.

She said she had engaged RBZ governor John Mangudya to assist in the setting up of the TNF which will help the country tackle various problems facing workers and employers, including the non-payment of salaries and company closures.

Mupfumira left for Geneva, Switzerland, this week to attend the International Labour Organisation 323rd Session of the governing body meeting which began on March 12 and ends on March 27.

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