Airtel Uganda delivers UGX 50.31 Billion dividend to NSSF, a Win for Shareholders and Uganda’s Economy

Airtel Uganda has cemented its position as a valuable asset to Uganda’s economy and its shareholders, recently distributing a substantial UGX 50.31 billion dividend to the National Social Security Fund (NSSF).

This event was hailed by Airtel Uganda as a “proud moment of delivering value to shareholders and Ugandans at large,” representing not just a financial transaction, but a “return on trust and an investment in Uganda’s economic future.”

The dividend payment underscores the success of Airtel Uganda’s strategy of inclusive growth. By listing on the Uganda Securities Exchange (USE) and attracting 4,614 new shareholders through its Initial Public Offering (IPO), the telecom giant is expanding participation in Uganda’s capital markets and empowering more Ugandans to benefit from its success.

For the NSSF, the UGX 50.3 billion dividend cheque represents a significant milestone, highlighting the strength of their strategic investments and their unwavering commitment to delivering value to their members.

According to Patrick Ayota, the Managing Director of NSSF, the Fund invested UGX 199 billion in 2023 to acquire just over 4.21 billion shares in Airtel during its IPO, at an effective share price of UGX 47.17 per share. This investment resulted in the NSSF holding a 10.5% stake in Airtel Uganda’s telecom business.

“The company has been consistent in delivering positive growth since the Initial Public Offer (IPO),” Ayota stated. “In 2023 when the telecom listed, the Fund earned UGX17 billion in dividends.” Further solidifying the investment’s value, he noted that “For the year ended December 2024, the Fund earned a total of UGX 33.2 billion from its investment in Airtel Uganda, reaffirming it as one of our profitable equity holdings. This brings the total gross dividend earned from Airtel Uganda over the last 2 years to UGX 50.3 billion.”

Ayota emphasized the long-term growth potential of Airtel Uganda, citing its consistently impressive business and financial performance. He commended the Airtel Uganda management team for their dedication to creating shareholder value while simultaneously focusing on the long-term growth of the company.

The success of the Airtel Uganda investment is reflective of the NSSF’s overall growth and strategic approach. Ayota revealed that the Fund’s assets under management have been steadily growing, reaching over UGX 25 trillion by the end of the last quarter, surpassing their Vision 2025 target of UGX 20 trillion 18 months ahead of schedule. This achievement was attributed to the hard work of the entire NSSF team.

The Fund’s investment strategy focuses on diversification and strategic asset allocation. Currently, the fixed income portfolio comprises 79.5% of total assets, while equity and real estate portfolios stand at 14.1% and 6.4% respectively.

The NSSF is also expanding its reach and providing more options for Ugandans to secure their future. Ayota highlighted the success of their voluntary savings product, Smartlife Flexi, which has garnered over UGX 16.1 billion in contributions since its launch in November. This indicates a growing trend among Ugandans to embrace voluntary savings, with the SmartLife Flexi program now boasting 29,110 members out of the NSSF’s total membership of over 2.2 million.

Airtel is delivering value to its shareholders and contributing to Uganda’s economic growth, while the NSSF is generating substantial returns for its members, securing their financial future and demonstrating the power of strategic investment.

The success of both organizations highlights the importance of sound financial management and a commitment to long-term growth for the benefit of all Ugandans.