PM challenges pension funds on investments
6th December 2011
Email
Print
Comments
Says they must create jobs and solve social problems
Prime Minister Mizengo Pinda
Opening the three-day regional social
security forum for Africa here yesterday, Pinda said that Tanzania’s
experience has shown that such projects offer handsome returns, create
jobs and above all help to solve social problems.
The forum has been organised in
collaboration with the International Social Security Association (ISSA),
drawing participants from 30 African countries including Tanzania.
“In addition to investing in socially
responsible investments, I challenge Social Security funds in the
continent to jointly invest in mega projects which cut across many
countries,” the Premier said in a speech read on his behalf by Gaudensia
Kabaka, Minister of Labour and Employment.
He added: “The Infrastructure Fund for Africa established in the early 2000 is a case in point here.”
“Another big challenge is how to provide
social security protection to the majority of our people who are mostly
rural-based and without formal employment.”
He expressed hope that the forum was
timely and would come up with answers to some of the challenges facing
the social security funds in the region.
The premier commended the role played by
the existing Social Security Funds in the country for their contribution
to social and economic development.
“In 2010 they jointly contributed up to 10 percent of the country’s Gross Domestic Product (GDP).”
He noted that the funds have also formed a
joint investment company called Pensions Properties Ltd, (PPL) which
has accomplished several key investment projects.
For example, between 2004 and 2006 the Funds have completed the new Parliament Building in Dodoma at a total cost of 33bn/-.
The other joint project is the
Arusha-based Nelson Mandela Institute of Science and Technology which
has cost 42 bn/- (US$ 31,626.5m).
On the health sector, Pinda said during
independence in 1961, there were only 98 hospitals and one doctor
throughout the country. “But today we have 240 hospitals and over 500
qualified doctors…without doubt; these efforts have increased access of
our people to medicare which is an important aspect of social security.”
Earlier, the director general of the
National Social Security Fund Dr Ramadhani Dau called upon social
security institutions in Africa to start reviewing their schemes to suit
the needs of the people in their respective countries.
He said studies have shown that most
people especially those in the informal sector were reluctant to join
the funds because the current arrangement was not in their favour.
Dr Dau explained that most people wanted to start benefiting from their sweat even before retiring from service.
“People want to use part of their
benefits, in time of needy. So, I think it is important for social
security funds to start revising their packages for the best of the
beneficiaries,” he stressed.
ISSA president Errol Frank Stoove said
significant progress has been made in increasing coverage to some of
Africa’s most vulnerable population groups, through innovative cash
transfers and health care programmes.
Less than 10 per cent of people in
sub-Saharan Africa are covered by social security funds, the situation
that calls for more proactive actions to address the situation.
SOURCE:
THE GUARDIAN
No comments:
Post a Comment