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Golden Sibanda Senior Business Reporter
The National Social Security Authority has invested $156 million into the productive sectors of the economy through various commercial banks.
General manager Mr James Matiza told The Herald Business that the investment had helped a number of companies avoid retrenching their workers.
The authority is putting final touches to papers for a further $2 million investment earmarked for Agri-Bills to be issued through Agribank and FBC Bank.
Mr Matiza said a total of $156 million was invested in the economy as of June 2014, according to latest statistics on NSSA’s disbursements to banks.

However, the amount may increase to as much as $200 million as the figure may increase or drop depending on the amount of matured investment.
Of the $156 million that the authority has invested in the economy, $15 million is specifically meant for projects in the agriculture sector while the balance is in mining and manufacturing.

The authority has also taken the position that a minimum of $156 million be invested in the productive sectors of the economy at any given time.
“We believe that we have $156 million out in the productive sectors of the economy. There actually is a board resolution to that effect, that at any given moment we must have a minimum of $156 million,” Mr Matiza said.

Mr Matiza said NSSA instructed commercial banks not to lend out any of its money to households, but only to productive sectors of the economy.
“We wrote to all banks and told them that NSSA money should not lend to households, but must be lend out to productive sectors,” Mr Matiza said.

The banks are required to on-lend the money from NSSA at maximum annual interest rate of 10 percent with NSSA getting 7 percent of this return.
Last year, NSSA invested a significant amount of money in tobacco Bills. The investment will mature in September and would be reinvested into other areas.

Mr Matiza said part of the authority’s responsibility was to assist companies to keep workers in their jobs so that they continue contributing to NSSA. The workers would then qualify for benefits when they retire.

While the money from NSSA is certainly not enough to cater for all the requirements of productive sectors, it helps to reduce liquidity challenges.
Due to the prevailing liquidity challenges some banks charge as much as 20 percent annually on loan facilities to productive sectors of the economy.