The National Social Security Fund (NSSF) has signaled readiness to channel savers’ funds into road infrastructure, aligning with growing calls to deploy long-term domestic capital into projects that drive Uganda’s economic transformation.
The move follows recent remarks by Yoweri Kaguta Museveni, who criticized the Fund for holding large sums in low-impact investments.
Speaking during Labour Day celebrations, Museveni said NSSF money is “lying there” in government securities instead of being used to build productive assets such as toll roads that can generate returns while supporting growth.
Responding to the debate, Patrick Ayota, Managing Director of NSSF, emphasized that the Fund is open to investing in transformative projects but within a disciplined investment framework.
“Africa’s future is in our hands, and our pensions hold the power,” Ayota said, underscoring the growing role pension funds can play in financing infrastructure across the continent.
He has previously stressed that investment decisions must balance innovation with prudence, noting that “the price of not innovating outweighs any investment,” particularly when funds are seeking long-term value creation.
Uganda’s NSSF, which manages assets estimated at over UGX 26 trillion, has traditionally invested in government bonds, equities and real estate. However, pressure is mounting to diversify into infrastructure projects such as roads, energy and industrial development to enhance returns and support national priorities.
Analysts say road infrastructure offers predictable, long-term revenue streams—especially under tolling arrangements—making it a suitable asset class for pension funds with long-term liabilities.
However, experts caution that such investments must be carefully structured to protect savers’ funds. Strong governance, clear financing models and risk management frameworks will be critical to ensure that returns are both sustainable and secure.
If implemented, the initiative could deepen Uganda’s capital markets while accelerating infrastructure development,marking a turning point in Uganda’s infrastructure financing strategy as well as positioning pension savings as a key driver of economic growth, in responding directly to the President’s call to put idle capital to work.