NSSF earns shs50.31bn in dividends from Airtel stake

Telcom giants,   Airtel Uganda has  presented a dividend cheque of shs50.31 billion to the National Social Security Fund (NSSF).

This significant payout follows NSSF’s strategic acquisition of shares in Airtel Uganda during the company’s initial public offering (IPO).

Airtel become the second telecom company on Uganda Securities Exchange in 2023 after offering eight billion  ordinary shares representing 20% of its equity at shs100 per share.

While the IPO raised shs211.4 billion, below the shs800 billion target, it attracted 4,614 new shareholders and marked a significant milestone in the company’s commitment to local ownership and capital market development.

Speaking at the ceremony at Kampala Sheraton Hotel on Friday, Sahu Soumendra, the Airtel Uganda Managing Director described the dividend payout as a new chapter.

” This dividend handover reflects how Airtel Uganda and NSSF are building a stronger economy, empowering workers, supporting families, and contributing to Uganda’s growth. As NSSF moves towards its Vision 2035, to grow assets to shs 50 trillion, double coverage, and reach 95% customer satisfaction, we are ready to support this journey,” Soumendra said.

He said NSSF’s participation in the Airtel Uganda IPO reflects confidence in the strength of Uganda’s financial sector.

“At Airtel, we are helping grow this sector by extending digital and financial services to every corner of the country. We are proud to stand with an institution that continues to deliver value to its members while playing an active role in Uganda’s transformation.”

Receiving the cheque, NSSF Managing Director Patrick Ayota commended Airtel Uganda for its performance and commitment to its shareholders.

“This dividend is a welcome return on our members’ savings. Our investment in Airtel Uganda is aligned with our strategy to diversify our portfolio and secure profitable returns for the benefit of our members,” said Ayota.

“Seeing a return like this reinforces our decision and demonstrates the value of investing in strong, well-managed local companies. This income will be duly credited to our members.”

During Airtel’s 2023 listing, the National Social Security Fund (NSSF) took up a 10.5% stake in Airtel Uganda, becoming the second-largest shareholder.

This substantial investment reflected NSSF’s confidence in the telecom sector and marked a notable step toward broadening participation in Uganda’s capital markets.

The Airtel  Uganda Managing Director applauded the NSSF leadership for their forward-thinking approach, trust, and professionalism qualities that have significantly contributed to the growth of Uganda’s savers’ fund.

“This is clearly reflected in their decision to invest in Airtel shares. As Uganda’s leading digital infrastructure provider, Airtel remains committed to delivering reliable and affordable connectivity that empowers businesses, giving Ugandans a reason to imagine,” Soumendra said.