The Zanzibar Social Security Fund (ZSSF) has invested over Sh279.26 billion ($103m) in various development projects since its inception in 1998, the government has revealed.
The Deputy Minister for Finance and Planning, Mr. Juma Makungu Juma, disclosed the figures during a session of the Zanzibar House of Representatives.
Responding to a question from Mtambwe Member of the House of Representatives, Dr. Mohammed Ali Suleiman, Mr. Makungu outlined the scope and impact of the fund’s investments over the past 27 years.
According to the Deputy Minister, ZSSF’s capital has been channeled into a range of sectors, including commercial and residential real estate, children’s recreational facilities, and other key infrastructure projects.
He reported that by the end of the 2023/24 financial year, the fund had generated Sh88.8 billion in profits from its investments.
“These projects have created both permanent and temporary employment opportunities, significantly contributing to the national economy,” Mr. Makungu said.
He added that ZSSF continues to meet its obligations to contributors, with timely disbursement of benefits in compliance with relevant laws and regulations.
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The fund’s growth has also enabled it to expand its coverage, increasing the number of benefit categories from three to six. These now include pension and compensation payments, disability benefits, inheritance benefits, maternity benefits, unemployment support, and work injury compensation.
Addressing concerns about potential losses, the Deputy Minister reassured the House that the fund has not recorded any operational losses since its founding. However, he acknowledged that global economic fluctuations have at times affected profit margins.
“Though ZSSF has remained stable, external factors such as international market volatility and economic downturns have occasionally resulted in lower-than-expected returns,” he said.
The government maintains that ZSSF remains a vital institution in securing the welfare of its contributors while playing a key role in Zanzibar’s socio-economic development.
