The Social Security Fund of Rwanda (SSFR) is Rwf125.65 million richer, after its Safaricom shares recorded a higher dividend over 2010. SSFR owns 0.24 percent shares in the giant Kenyan telecom company.
In 2007, the Fund bought Rwf4.2 billion worth of Safricom shares. SSFR’s returns from the telecom company in 2009 were Rwf68.9m.
Facing tight competition from major telecom companies like Airtel, Orange and YU, Safaricom is the market leadership with 78.3 percent or 17 million subscribers and a net profit of 15 billion Kenyan Shillings in 2010.
A source at the Fund disclosed to the Business Times: “Shareholding by SSFR is a long term investment and does not immediately result into profit. Currently SSFR maintains a 2 percent increase in interest rate annually for clients who have been contributing for fifteen years and more.”
Currently, SSFR holds shares valued at Rwf38.6 billion in 17 companies. In 2010, it registered contributions worth Rwf17.3 billion from its 37,274 members.
Attempts to get a reaction from Afrique Ramba, the Acting Director General of SSFR, were unsuccessful.