OUR BUSINESS:

Business model and value creation aligned to the six capitals

Business model and value creation aligned to the six capitals

OUR BUSINESS:

Business model and value creation aligned to the six capitals

Value Creation
Value Erosion
Value Preservation
Value Creation
Value Erosion
Value Preservation

Inputs

What we need to run our business

Financial Capital
  • Members’ Fund of UGX 21.95Tn (June 2023: UGX 19.07Tn)
  • Cash balance UGX 295.12Bn (June 2023: UGX 191.47Bn)
  • Contributions received UGX  1.93Tn (June 2023: UGX 1.72Tn)
Intellectual Capital
  • A deliberately shaped, customer-centric culture
  • A strong brand that resonates with consumers
  • Brand costs of UGX 5.5Bn (June 2023: UGX 9.9Bn)
Human Capital
  • 605 skilled, customer-centric employees (June 2023: 579)
  • Experienced and ethical leadership team
  • Staff satisfaction and engagement survey
  • Significant investment in learning and development of UGX 3.25Bn (June 2023: UGX 3.66Bn)
  • Employment equity initiatives
  • UGX 114.5Bn (June 2023: UGX 89.3Bn) paid in salaries and benefits
  • Employee wellness programmes. Investment of UGX 3.15Bn (June 2023: UGX 2.82Bn) 
Manufactured Capital
  • Digital channel and innovation spend UGX 2.32Bn (June 2023: UGX 1.799Bn)
  • Infrastructure spend (branches and contact centres) UGX 11.2Bn (June 2023: UGX 10.5Bn)
  • Substantial investment in our Enterprise Architecture UGX 4.6Bn (June 2023: UGX 12.9Bn)
Social and Relationahip Capital
  • A focus on responsible procurement and supplier development
  • Stakeholder engagement
  • Focused and committed to corporate social investment
  • Prioritising commitment to identified SDGs and responsible ESG practices
Natural Capital
  • Energy efficiency and management development
  • A meaningful contribution to our environmental sustainability, aligned to the national, regional and global development goals
  • Water conservation and waste management

How we run our business

We create, preserve and defend value by using our resources responsibly to generate value maximising outputs and outcomes for our Members and all stakeholders.

Key outcomes & trade-offs

What we achieve for our stakeholders

Financial Capital
  • Cost-to-income ratio of 8.8% (June 2023: 10.2%)
  • Cost-of-Administration ratio of 1.00%
    (June 2023: 1.02%)
  • Interest to members (RoE) of 11.5 % (June 2023: 10%)
  • Benefits paid UGX 1.12Tn (June 2023: UGX 1.19Tn)
  • Benefits TAT 10.1 days (June 2023: 11.9 days)
  • 57% of employer compliance (June 2023: 57%)
Trade-offs
  • Increasing investment in East Africa
  • Increasing investment in fixed deposits while reducing investment in treasury bonds
  • Building more affordable houses for our stakeholders
Intellectual Capital
  • Tonality score of 92% (June 2023: 79%)
  • Customer satisfaction rate of 87% (June 2023: 85%)
  • Retention of specialist skills (Data Science Specialists, Software Developers, and CFAs)
Trade-offs
  • No trade-offs
Human Capital
  • Maintained employee motivation, skills and diversity through:
    • Percentage salary increase for lower staff is equal to Management for the same performance ratings
    • Investment in upskilling employees of UGX 3.25 Bn (June 2023: UGX 3.66 Bn)
    • Equity 53% Male and 47% Female (June 2023: 54% Male and 46% Female)
    • Employee attrition of 3.4% (June 2023: 6.5%)
  • Improved people satisfaction levels:
    • 89% (June 2023: 86%)
Trade-offs
  • Aligning the organisational structure with the Fund’s business model
Manufactured Capital
  • 91% of our member transactions and interactions were hosted digitally (June 2023: 92%)
  • Uptime of application systems at 99.7% (June 2023: 99.3%)
  • Employees efficiently working from home: 100%
  • 2.34 million customers (June 2023: 2.26 million)
  • Digital Index 74% (FY 2023: 66%)
  • Pay-out of benefits 10.1 days (2023: 11.9 days)
Trade-offs
  • Increasing IT capacity of building more resilient and agile IT systems
Social and Relationship Capital
  • Responsible corporate citizen and commitment to SDGs
  • UGX 236.77Bn (June 2023:  UGX 216.27Bn) direct and indirect tax contributions
  • Buy Uganda Build Uganda (BUBU) (98.8% of procurements are with local suppliers) (June 2023:  99.9% )
  • Financial literacy campaigns UGX 0.5Bn (June 2023: 0.37Bn)
  • Employer Compliance 57% (June 2023:  57% )
  • New membership 8%: (June 2023: 6%)
  • 94% of customers who logged complaints were resolved at the first attempt (June 2023: 90%)  
Trade-offs
  • Building more affordable houses for our stakeholders
Natural Capital
  • 27% increase in water consumption (June 2023: 6%)
  • 123% increase in energy consumption (June 2023: -28%) contributions
  • 5% reduction in paper consumption (June 2023: 15%)
  • 100% of the waste from buildings diverted to KCCA pipelines in line with City Council Solid Waste Management Ordinance of 2000
  • Green certificates for Pension Towers and the Lubowa housing project
Trade-offs
  • No trade-offs

... and ensures our ability to create value in the future.

A NEW DAY - CREATING SHARED VALUE FOR SUSTAINABLE GROWTH

Value delivered to stakeholders