Social security net must be widened

By Editor
24th June 2011

Editorial Cartoon

While all international conventions recognise social security is a universal need and a basic human right, only one in five people in the world has adequate social security. And according to the International Labour Organisation (ILO), half of the world’s population is without any social security protection.

Tanzania too is in the same precarious situation as according to the Social Security Regulatory Authority (SSRA) Director General, Irene Isaka, only 3.5 per cent of over 40 million Tanzanians are currently registered with social security funds.

The DG told this newspaper in an exclusive interview that the percentage was not healthy for many Tanzanians because when they get older they would not be able to receive any security protection.

It is for this reason we view as a timely and positive move the plan by SSRA to increase the number of Tanzanians enjoying social security to 5 per cent by 2014 in the coming three years.

We specifically laud the move in the envisaged plan to increase social security coverage to farmers, pastoralists and other rural based populations so far neglected by the funds.

However, we believe time is ripe to gun for wider coverage – beyond the planned 5 per cent – if social security funds could target the country’s ever-growing informal sector which is billed to be the second biggest employer after agriculture.

Without an expanding industrial base, the majority of Tanzanians will for a long time to come continue to depend on agriculture and the informal sector for their livelihoods. And they need social security protection.

We strongly believe that this can be achieved if there is the political will as this may entail changes to the existing laws that established the various social security funds to develop new statutory schemes by extending existing or modified benefits to previously excluded groups.

We wish to urge the government to fully support the SSRA in its resolve as we believe Tanzania has potential opportunities that remain uncovered by the social security schemes if a well-designed social security scheme – which should essentially be sustainable and broad-based with adequate coverage – is put in place.

At the same time, we wish to appeal to social security funds to assist their members prepare for retirement instead of the current practice whereby members receive payment after they retire – sometimes too old and sick to put the monies into useful use.

The National Social Security Fund (NSSF) has taken the lead as, according to the Deputy Minister for Labour and Employment, Makongoro Mahanga, NSSF was currently looking into the possibility of providing housing and individual loans to its members using their contributions as collateral.

This is a welcome move which we think is long overdue, and should therefore be speedily implemented to enable members of the funds prepare themselves for retirement in good time so that they can be assured of comfortable lives upon retirement.

As mentioned earlier, Tanzania should strive for wider social security coverage while at the same time creating enabling environment for members of the funds use their contributions to the funds to improve their livelihoods.

For increased coverage, social security providers should target agriculture and informal sectors.
SOURCE: THE GUARDIAN