The National Social Security Fund (NSSF) in Tanzania has revived plans for the Dege Eco Village project, a 302-acre development that was stalled in 2016. The project, located in Kigamboni, was designed to include thousands of housing units and supporting commercial facilities. An earlier attempt to sell the project to a private investor from Namibia failed, with the investor unable to fulfill the requirements of the agreement.
The project was suspended following an audit by the Social Security Regulatory Authority and the Bank of Tanzania, which identified shortcomings in its implementation. In 2022, the government approved the sale of the project in its existing condition, as continuing with its construction would result in further losses. However, the contract with the Namibian investor was terminated in December 2025.
The NSSF is now reassessing options for the project, including re-advertising it to potential investors or developing it itself. Director General Masha Mshomba stated that the fund is reviewing the future of the project to ensure that investments made using members' contributions generate value. The Office of the Attorney General is reviewing the fund's recommendations on the steps to be taken, with a decision expected by the end of October 2026.
The Dege Eco Village project has attracted scrutiny from the Controller and Auditor General, who identified it among NSSF's unfruitful investments and raised concerns over its management. An earlier performance audit found that the project's administration block had been completed but suffered vandalism. The NSSF had previously invested around Sh330 billion in the project.
The NSSF is implementing its Eighth Strategic Plan, which aims to increase the value of investments while expanding social security coverage. The fund expects its investments to grow by 112 percent, from Sh9.61 trillion in 2025/26 to Sh20.35 trillion by 2030/31. It also plans to increase membership by 209 percent, from 2.14 million members in 2025/26 to 6.61 million by 2030/31.
During the 2024/25 financial year, the NSSF expected to sell the project to the Namibian investor for $215 million. However, the investor failed to satisfy the conditions, including paying 50 percent of the agreed value. The fund is now exploring options to ensure the project generates value for its members.
The NSSF's investment portfolio has grown substantially in recent years, rising from Sh4.36 trillion in June 2020 to Sh11.42 trillion in June 2026. The fund attributed this growth to increased contributions, investment income, and appreciation in the value of its investments. It plans to focus investments across government securities, corporate bonds, equities, bank deposits, and industrial projects.
Key points
- The NSSF is reassessing options for the stalled Dege Eco Village project.
- The project was initially expected to be sold to a Namibian investor for $215 million.
- The NSSF's investment portfolio has grown substantially, with a 162 percent increase in value over the past six years.
