Social security net must be widened
24th June 2011
Email
Print
Comments
Editorial Cartoon
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
No comments :
Post a Comment