NSSF Asset Growth: How Hifadhi Skimu is Reshaping Tanzania’s Social Security
NSSF has reached a valuation of 11.2 trillion shillings, driven by strategic investments and the expansion of the Hifadhi Skimu program to include more Tanzanians.
The National Social Security Fund (NSSF) has reached a major milestone, with its asset value climbing to 11.2 trillion shillings by March 2026. This is a massive jump from the 4.3 trillion shillings recorded in 2020, signaling a period of robust growth and improved fiscal discipline.
At the heart of this transformation is the Hifadhi Skimu initiative, a program designed to bridge the gap in social security coverage by reaching self-employed individuals and those in the informal sector.. By moving beyond traditional employment structures, the fund is effectively broadening its membership base and ensuring that the safety net touches corners of the economy previously left behind.
Speaking at the 56th NSSF Workers’ Council meeting in Dodoma, Minister of State Deus Sangu highlighted that these gains are not accidental.. He pointed to a combination of modernized management, high-yield investments, and a deep reliance on technology to streamline services as the core pillars of the fund’s current success.. For the government, this is a strategic move to ensure that no citizen is left vulnerable in their later years.
The Strategic Shift Toward Universal Inclusion
Expanding Hifadhi Skimu represents a fundamental shift in how Tanzania approaches social protection.. For years, the social security conversation was restricted to formal sector employees, leaving millions of entrepreneurs and small-scale traders without a retirement plan.. By formalizing these informal contributions, NSSF is not just collecting funds; it is providing a sustainable bridge for workers who previously lacked institutional support.
This shift is equally about national development.. When NSSF invests in large-scale projects like the Mkulazi sugar factory, the impact ripples through the economy.. These investments create jobs, support local supply chains, and build the infrastructure necessary for long-term growth.. The success of the fund is now deeply intertwined with the prosperity of the private sector, creating a cycle of reinvestment that benefits both the contributors and the nation at large.
A Future Built on Digitization and Transparency
Looking ahead, the fund is setting ambitious targets.. According to Director General Masha Mshomba, the next five-year plan aims to push the fund’s valuation to 24.7 trillion shillings by 2031, with a goal of enrolling 6.6 million members.. Achieving these figures will require more than just aggressive recruitment; it demands the high-level compliance and transparency that earned the fund clean audit reports from the Controller and Auditor General.
The adoption of ICT systems, which now cover 99% of services, is a critical component of this roadmap.. By removing physical barriers to entry, NSSF is making it easier for a boda-boda driver in Mwanza or a market vendor in Arusha to contribute to their future with the touch of a button.. While challenges remain—such as employer non-compliance and a general need for better public education on social security benefits—the foundation laid by these digital tools provides a clear path forward for reaching the 2050 goal of 70% social security coverage nationwide.