RSSB investments rise
The Rwanda Social Security Board (RSSB) has so far invested Rwf 286.6 billion since its creation as a merger between the Social Security Fund of Rwanda and Rwanda Medical Insurance Company (RAMA) in March last year.
The figure represents a steady increase in investments compared to Rwf 143.7 billion invested in 2009.
According to the board’s investment policy, the investments are intended to act as a framework in which money remitted by its clients can be successfully invested for profit.
Real estate development remains RSSB top priority, where its investments have increased to Rwf 63.9 billion from Rwf 50.9 billion in 2009.
Other investments include corporate loans, bonds, local and foreign equity.
“Since the merger, we combined investments from the two bodies and this has helped to streamline the investment targets. By investing the money remitted to us by employers, we try to make sure that we get profit and also use it to develop the economy, rather than just keep it in a current account,” Afrique Ramba, the Deputy Director General of RSSB, said in an interview yesterday.
The body’s investment strategy is reviewed annually to ensure it remains effective and profitable.
“Sufficient investment returns earned at appropriate risk levels will ensure social benefits are secure, while the government is also interested in seeing long-term investments made to build the nation,” a statement from the board reads.
Due to the nature of its large investments, RSSB is currently seeking investors, both local and international, to partner with it in its various ventures.
The body currently owns several buildings that are rented to district administrations, residential apartments and is currently developing a “Vision City Project” in Gacuriro, Kigali, that will have residential areas for all classes.
In implementing the business strategy, RSSB considered an investment policy that balances the need for long-term return while minimizing short-term volatility.
The body released Rwf 12.6 billion since July last year in forms of pensions and medical insurance payments to its customers.
Contributions and remittances from employers are paid to the body on quarterly basis, whereas members eligible for pension must be between 55 and 65 years and should have contributed for at least 15 years.
Contact email: ivan.mugisha[at]newtimes.co.rw