Overview

LAPF Pension Fund Investments

Members’ funds need to be invested wisely in different portfolios so as to create value and to ensure that reasonable and fair benefits are paid to members upon retirement or in form of other benefits offered by the LAPF Pension Fund.
 
The investment process and decisions is guided by the following policy documents:-
  • Social Security Investment Guidelines issued by Social Security Regulatory Authority (SSRA) and Bank of Tanzania (BOT) in May 2012;
  • LAPF Pensions Fund investment Manual and policy;
  • Annual plans and budgets;
  • Five Years Corporate Strategic Plan;
  • Operating economic environment.
The overall objective is to ensure compliance, maximize returns on investments while ensuring that all risks associated with such investments are being minimized. 
 
The Fund Investment portfolio structure comprises of investments in fixed and non-fixed income assets. These are:-
  • Government securities ie Treasury bills and bonds; 
  • Fixed deposits in banks;
  • Corporate bonds; 
  • Loans: Corporate, syndicated and SACCOS;
  • Equities; and 
  • Real estate.

The investment portfolio has been growing overtime and for three years from June 2008 to June 2011, it has increased from Tshs 154.5 billion to Tshs 459.4 billion. Almost 40% is invested in Government securities for safety and liquidity requirements on annual basis. The Fund has also invests in real estate in order to build up long term asset base of the Fund for the purpose of meeting long term- pension liabilities. 

 
Real estate projects include the following:-
 
1. LAPF Complex Project
This is the 30 storey project located at Makumbusho area, in Dar es Salaam. Construction works started in July 2009 and it is projected to be completed in August 2014. The building will have the following facilities:-
  • Shopping mall;
  • Conference centre;
  • Offices;
  • Restaurants;
  • Discotheque;
  • Multi- purpose function hall; and
  • Parking to serve the building.
 
Artistic impression of the LAPF Complex
 
 
2. Local Government Training Institute (LGTI) expansion– Hombolo.
The Fund financed the first sub-phase expansion of the Hombolo Institute located in Dodoma region. This institute is under the aspire of the Ministry of Local Government (TAMISEMI). The facilities constructed include:-
  • Tutorial Block with classrooms and offices for staff; 
  • Library;
  • Lecture Theatre;
  • Residential Halls for 400 students;
  • Cafeteria and Computer Laboratory; and
  • Staff houses 

 

3. College of Health Sciences - University of Dodoma
This is one of the colleges at the University of Dodoma. College construction commenced in July 2009 and was completed in August 2010. It comprises of:-
  • Administration Block;
  • Classrooms and seminar rooms block;
  • Laboratories;
  • Library; 
  • Two Halls of residence; and 
  • Cafeteria block 

Picture of seminar block

The Fund also invests in joint venture projects with Councils. Among such joint ventures are: 
  • Mwanza Commercial Complex- Located at Ghana plots on the highway to the Mwanza Airport
Pictorial view of the project 
 
Construction started in July 2012 and is expected to be completed in August 2014. Upon completion the complex will have banking halls, shopping malls, restaurants, cinema halls and children play grounds. 
 
  • Mbezi Luis Trucks Terminal in Dar es Salaam.
  • Development of Msamvu Bus Terminal in Morogoro.
Other projects include construction of an ultra modern office accommodation and commercial building in Dodoma to accommodate the Head office of the Fund. Construction started in August 2012 and is projected to be completed in 
 
Pictorial view of the LAPF Head office in Dodoma
 
 
The building will also serve as one of the real estate investments of the Fund and generate income for the Fund core activities ie benefit long term payments.