Regional social security bodies moot $1bn fund

By Kabona Esiara Rwanda Today

Posted  Friday, November 23  2012 at  18:51

In Summary

• The Fund will allow members of the public to buy shares to raise funds for project development.
• Analysts say the Fund would support the regional economy and shield it from any negative global economic spillover that at times slow down implementation of budgets.
• The Fund would also allow stronger pensions and providence fund to diversify their investments in the bond markets, securities and infrastructure developments

Regional social security providers have established a $1 billion mutual fund to raise capital for infrastructure development in East and Central Africa.

The Fund, delegates at the recently concluded social security protection conference in Kigali said, will allow members of the public to buy shares to raise funds for project development.

However, the region will wait a little longer for the Fund after Tanzania and Uganda asked for time to consult.

Uganda’s State Minister for Sports, Charles Bakabulindi, requested a delay to allow consultation with other stakeholders.

Mr Bakabulindi’s request was supported by Tanzania, paving the way for feasibility study before the fund can become operational.

The meeting agreed that the study be done by the East and Central Social Security (ECASSA) secretariat.

The report will be submitted to the council during its next sitting for decision before the fund could become operational next year.

Support regional economy

Analysts say the Fund would support the regional economy and shield it from any negative global economic spillover that at times slow down implementation of budgets.

The Fund would also allow stronger pensions and providence fund to diversify their investments in the bond markets, securities and infrastructure developments.

Participants at the Kigali conference were drawn from Uganda, Rwanda, Burundi, Tanzania, Kenya and Zambia.

The delegates called for speedy operationalisation of the Fund to finance development projects in the region that have been unable to take off due to insufficient funds.

When the Fund becomes operational, the delegates noted, social security providers in the region would invest in different countries where there are investment opportunities without being subjected to tough regulations.

According to the country-to-country presentations, Rwanda beat other countries in the region in health protection.

It was noted that about 90 per cent of the vulnerable in Rwanda access free medical treatment and also the health centres are stocked with basic medicine.