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NSSA expects good returns from FBC Holdings investment

THE National Social Security Authority (NSSA) expects positive returns from its investment in FBC Holdings and to deliver value to the economy, especially on the housing stock, the authority has said.

BUSINESS REPORTER

In a statement issued on Friday, NSSA said it had posted positive returns on its investment through capital gains and dividend income in FBC Holdings. The authority holds a 35% stake in the listed entity.

“FBC share price has delivered 858% since March 2009, against a relative benchmark of 185%. At the same time the company has declared dividends amounting to $4,5 million,” the authority said.

NSSA partnered FBC in its housing projects that include Rusike and Glaudina which have 699 stands and 394 stands respectively.

“The significance of this investment is that continued positive contributions towards increasing the national housing stock in line with the Zimbabwe Agenda for Sustainable Socio Economic Transformation blueprint can be expected,” the statement reads.

The country has a 1,2 million housing backlog which needs to be met through the construction of more housing units countrywide. Between 1994 and 2000, the authority was financing housing projects through building societies’ paid up permanent shares. Through the initiative, NSSA developed houses in Chegutu, Shamva, Norton, Kuwadzana in Harare and Cowdray Park in Bulawayo and 22 low-density Woodlands town houses in Bulawayo.

 NSSA is a majority shareholder in Capital Bank which has been downgraded to a microfinance institution. The authority said the financial support it extended to the sector had brought stability and confidence in the banking sector.

Last year the business lobby group, Confederation of Zimbabwe Industries, queried NSSA investments in the financial services sector.

The authority is currently constructing new vending malls at Ximex Mall in Harare and other similar malls in Gwanda while embarking on other projects countrywide.

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