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Oliver Kazunga,Senior Business Reporter
THE National Social Security Authority (NSSA) has received $7 million as the first payment of the $43.25 million agreement for exiting from the Telecel Zimbabwe transaction.

NSSA board chairman Mr Robin Vela said: “The authority facilitated the acquisition of 100 percent equity in Telecel International (which owns 60 percent of Telecel Zimbabwe) by the Zimbabwe Academic and Research Network (Zarnet) through a transfer and buy-back agreement.

“This was achieved through a $30 million mezzanine financing arrangement with NSSA.”

He said in a statement for the financial year ended December 31, 2016, that the board made the decision to exit from the Telecel transaction.

The exit structure would see the authority, on a secured basis, being paid $43.25 million in  quarterly instalments over a three-year period with a resultant internal rate of return of approximately 16 percent.

“The first payment of $7 million was received in the second quarter of 2017,” said Mr Vela.

During the period under review, NSSA achieved a $105.9 million up from $32.1 million realised in the prior year.

The significant improvement in profitability is attributable to less write downs and improved contributions. Total operating expenses increased by 21 percent from $87.6 million to $105.8 million.

The increase arose from the high credit losses provision of $40.9 million and bad debts written off of $23.4 million.

Excluding the above provisions, impairment losses and unusual items, operating expenses decreased by eight percent from $39.8 million to $36.3 million in 2016.

Mr Vela said NSSA during the period under review provided a $20 million loan facility through a local commercial bank to finance the Command Agriculture programme.

“Through this intervention, the authority was able to contribute to the Government’s Command Agriculture programme by enabling the                    production and supply of  critical basal and top dressing fertilisers,” he said.

He said it was NSSA’s intention to continue pursuing such structured trade transactions that generate positive investment returns for the authority,               while also providing meaningful support for strategic national programmes.

During the period under review, Mr Vela said through the issuance of Treasury Bills, the Government settled its contribution arrears amounting to $180 million dating back to 2013.

“The settlement will have an immediate positive effect on retired civil servants as those who retired earning more than $200 will have their pensions adjusted upwards,” he said.  —                 @okazunga