NSSA portfolio tops ZWG6bn on ZSE

 LIVINGSTONE MARUFU

The National Social Security Authority (NSSA), a cash-rich State-run pension fund, has seen the value of its investments on the Zimbabwe Stock Exchange (ZSE) surge past ZWG6bn, giving it control of more than 10% of the local bourse’s total market capitalisation, an unprecedented show of strength by a public institution in the capital markets.

The pension fund’s influence extends to the Victoria Falls Stock Exchange (VFEX), where its holdings now also exceed 10% of that market’s capitalisation, cementing NSSA’s place as a dominant institutional investor in both local and US dollar-denominated markets.

“We invest in private and public equities. We’re on the Zimbabwe Stock Exchange where our investment is worth about 10% of its market capitalisation, as well as on the Victoria Falls Stock Exchange. This means your contributions are not just protecting people, they are building the economy,” NSSA’s marketing and public relations deputy director, Tendai Mutseyekwa, told Business Times.

ZSE’s total market capitalisation currently stands at ZWG60.8bn, with NSSA’s exposure valued at ZWG6.08bn. On VFEX, the market is valued at US$1.27 bn, and NSSA’s portfolio has crossed the US$127m mark.

The pension fund’s growing footprint is anchored in a broad investment strategy that includes direct and indirect shareholding across key sectors of the economy. NSSA has secured substantial stakes in some of Zimbabwe’s most valuable blue-chip firms—among them CBZ Holdings, FBC Holdings, and First Mutual Holdings. It also holds equity in Rainbow Tourism Group (RTG), OK Zimbabwe, ZimRe Holdings, Turnall Holdings, StarAfrica Corporation, and agro-industrial player Ariston.

The authority not only buys shares on the secondary market but also actively participates in rights issues and corporate actions to consolidate or expand its positions. This approach, according to Mutseyekwa, forms part of NSSA’s “impact investment strategy” that is “designed to stimulate economic productivity, job creation, and job protection.”

But as NSSA tightens its grip on the stock market, questions have emerged around recent divestments and the identity of buyers snapping up its shares.

The authority has exited firms like ZB Financial Holdings and Mashonaland Holdings in recent months, citing the need to rebalance its portfolio. At the same time, several insurance companies have disassociated from NSSA, amid concerns that some of its investee companies were not being treated fairly or equitably.

“There has been a concern that NSSA’s shareholding in various companies has been snapped by a mysterious buyer who was on a buying spree,” said one investment analyst. “This has affected the bourse, as many believe that only politically connected individuals are acquiring these shares.”

While the fund’s capital injection has brought much-needed liquidity to the market, analysts warn that without transparency around disposals and governance of investee companies, NSSA’s dominance could damage confidence in the equities space.

Still, the pension fund is not limiting its ambitions to listed equities. NSSA is actively deploying capital into agriculture, renewable energy, infrastructure, and real estate—diversifying its portfolio in line with long-term economic development goals.

“We have about 111 properties situated across the country and also provide affordable housing through our subsidiary, the National Building Society, as well as participate in infrastructure development,” Mutseyekwa said.

Created through the NSSA Act of 1989, the Authority falls under the Ministry of Public Service, Labour and Social Welfare. It is governed by a tripartite board comprising representatives from government, business, and labour, and administers social security schemes for the formally employed workforce.

NSSA operates two major schemes: the Accident Prevention and Workers’ Compensation Scheme, which currently supports around 8,000 beneficiaries, and the Pension and Other Benefits Scheme, which provides retirement and survivor benefits to approximately 240,000 former workers and their dependents.

Both schemes are funded through a pay-as-you-go system, where current workers’ contributions support today’s beneficiaries, with excess funds strategically invested to ensure the sustainability of the pension system.

“Our mandate is not just to protect contributors after retirement or in cases of injury,” Mutseyekwa said. “It is also to secure and grow the value of their contributions by investing in the real economy.”

As Zimbabwe continues to grapple with economic volatility and currency realignment, NSSA’s investment moves are being closely watched. Its rising influence in blue-chip counters, property, and infrastructure offers hope for long-term economic stability—but also demands transparency and accountability to uphold its public mandate.