NSSA in US$ 2m revolving loan deal for pensioners

STATE- RUN pension fund, the National Social Security Authority (NSSA), has concluded a US$2m deal with two banks that will see its pensioners access loans for income generating projects at concessionary rates.

This comes after the realisation that many pensioners sink into abject poverty shortly after leaving employment and the revolving facility is likely to transform lives of many former workers.

In addition, the compulsory pension fund has also secured a deal with a major retail chain that will also offer NSSA pensioners a 10 percent discount for groceries.

NSSA deputy director – marketing and communication, Tendai Mutseyekwa, yesterday said both deals were expected to be implemented this month as soon as modalities have been concluded.

“We have realised that monthly pay-outs can never be sufficient, not just in Zimbabwe, but elsewhere in the world, so we have had to be creative in coming up with ways of alleviating the plight of our pensioners. Among the interventions is the establishment of a US$2m revolving facility that will be disbursed through POSB and NBS,” said Mr Mutseyekwa.

“The two banks cover 70 percent of our pensioners. We intend to extend the facility to banks that cover the remaining 30 percent of our pensioners.

“The loans are short term, 18 months, and will attract an interest rate of 10 percent per year. The disbursement will be done through banks who will conduct their own vetting to ensure that only NSSA pensioners access the facility.

“We have also concluded a loyalty scheme with SPAR that will see NSSA pensioners enjoying a 10 percent discount when they shop at these outlets. This will be implemented as soon as production of NSSA/SPAR cards has been concluded, but we expect it to be within the month,” he said.

Negotiations with another retail chain are at an advanced stage and pensioners will be advised accordingly.

Mr Mutseyekwa said, in addition to the revolving facility with banks, NSSA was also pushing for a waiver of bank charges for its pensioners with POSB and NBS and this was expected to be concluded in June.

“We have set 2021 as the year to meet the expectations of our pensioners, igore rekugutsa mapensioners edu.”

NSSA on Friday opened the first of six pensioners’ and staff clinics that will be established across the regions.

The Harare facility, which is initially serving as a covid-19 isolation centre for pensioners and staff, will be upgraded into a fully- fledged clinic at a later stage.