The Social Security and National Insurance Trust (SSNIT) has undertaken a review of its investment portfolios, with a renewed focus on high-performing asset classes to maximise returns and ensure sustainability of pension payments to members and contributors.
According to the Director-General (D-G) of SSNIT, Mr Kwesi Afreh Biney, the new strategy was part of efforts by the Trust to generate sufficient revenue to meet its growing financial obligations to members and contributors.
In an interview with journalists after the official opening of the new Spintex Branch of SSNIT in Accra on Monday, Mr Biney said the Trust was concentrating its investments in sectors and instruments that were consistently yielding good returns.
“To be able to give more to our members, our investments must generate the needed returns. That is why we are working to convert non-performing assets into performing ones,” he stated.
Mr Biney explained that the Trust was increasingly channeling resources into fixed income securities, which had proven to be a reliable source of revenue.
“This is an area that has yielded strong results for us. We are therefore committing more funds into fixed income instruments,” he said.
Mr Biney also pointed out that some listed equities, particularly in the banking and industrial sectors, had performed well for the Trust, and would remain a key focus of its investment drive.
Touching on the telecommunications sector, Mr Biney noted that it had become a profitable area of investment for SSNIT in recent years.
“Telecoms has brought in great returns, and we will continue to invest in that space,” he stated.
He said the energy sector had also shown strong performance, adding that SSNIT was expanding its footprint in that area through the expansion of its wholly owned power plant, CENIT Energy Limited, from Tema to Kumasi.
“The power sector has delivered encouraging results. The expansion of CENIT to Kumasi is not only to improve electricity supply to the people but also to strengthen our revenue base,” the D-G added.
Responding to questions on SSNIT’s position on its investments in the tourism and hospitality industry, Mr Biney clarified that the Trust had no intention of selling off its assets in that sector.
“We will not sell those facilities. We are working to turn them around and make them viable. We will soon hold an event to outline our plans,” he assured.
When asked whether he would support calls for an increase in the retirement age from 60, Mr Biney said such a decision required broad national consultations and consensus.
“We must have a national conversation before making any move on the retirement age,” he said.
For now, Mr Biney said SSNIT’s priority was to expand coverage and make its services more convenient and accessible to members and contributors across the country.
