Honourable, Magessa Mulongo, Regional Commissioner, Arusha
Mr. Eric Shitindi, Permanent Secretary, Ministry of Labour and Employment
Mr. Errol Frank Stoove, President of the International Social Security Association
Mr. Hans-Horst Konkolewsky, Secretary General of the International Social Security Association
Mr. Abubakar Rajabu, Chairman, Board of Trustees, National Social Security Fund
Dr. Ramadhan Dau, Director General, National Social Security Fund
Distinguished Guests,
Ladies and Gentlemen.
On behalf of the Prime Minister and Government of Tanzania and my own behalf I would like to
thank the International Social Security Association (ISSA) in collaboration with the National Social
Security Fund (NSSF) for inviting me to come here and be with you today to officiate the opening
of the second Regional Social Security Forum for Africa.
I would also like to extend my gratitude to all participants from outside Tanzania who came here to
share knowledge and experience at this special occasion. I believe that their presence is a clear
manifestation of good relations that exist between our countries and the International Social
Security Association.
As you are aware, Arusha has become our country’s major entry point for tourism and a must-visit
place. I encourage you to find time, during your stay here, to fully explore the exotic place that is
Arusha, a city which former US President Bill Clinton baptized the “Geneva of Africa”.
Furthermore, I would like to take this opportunity to thank the ISSA President Mr. Errol Frank
Stoove’, the Secretary General, Mr. Hans-Horst Konkolewsky and the ISSA Bureau for choosing Tanzania as the venue of this important meeting. I am aware that, as a universal organization, the
ISSA has members almost everywhere in Africa, which means you could have held this meeting
elsewhere in the Continent.
Your choice is a strong message of respect and trust in our country Tanzania.
It is my hope that this international meeting will provide an opportunity for African social security
experts to compare notes and learn best practices from each other.
Distinguished delegates,
This meeting has just come at an opportune time as it coincides with our country’s 50 years of
independence and the climax will be on December 9, 2011, just four days from today. It is a great
moment for us to pose and take stock of how we have fared as a country and people, for the last five decades.
In this period of time, Tanzania has succeeded to establish eight (8) Social Security Institutions with coverage of less than four per cent of the entire population, which is only 6.5 per cent of the labour force. The institutions offer short and long term benefits to members, in accordance with
International Labour Organization (ILO) Convention 102 of 1952.
s we celebrate Tanzania’s 50 years of Independence Anniversary, it depicts an important
milestone of our country’s historic journey and we are proud to have registered satisfactory success
in some specific aspects of social security. In view of this and taking into account the focus of our
gathering here, I would like to highlight just few achievements made in the areas of health and
education.
In the health sector, during Independence in 1961, there were only 98 hospitals and one doctor
throughout the country. Today we have 240 hospitals and over 500 qualified doctors.
Mindful of our responsibility to our people, we have also brought medical attention to rural areas by increasing the number of Health Centers from 22 in 1961 to 687 today. Likewise, dispensaries have increased from 1,236 to 5,394 during the period. Without doubt, these efforts have increased access of our people to health care which is an important aspect of social security.
In addition to the efforts to increase health-care facilities in the country, in Tanzania’s social
security systems members’ health is a pivotal contingency which attracts two benefits, the Social
Health Insurance Benefit, and the Maternity Benefit. These benefits are provided to members by our
Social Security Institutions through accredited medical providers. However, the number of
beneficiaries of these schemes remains low, less than 20 percent of the population.
Distinguished delegates,
Similarly, we have registered major achievements in the education sector. There were only 3,238
Primary Schools in 1961 which have increased to 16,000 today. There are 40 Universities now from
only one at Independence, 4,367 Secondary Schools from a mere 41 in 1961.
Enrollment of students from Primary School to University has increased manyfold since
independence. In 1961, 486,470 pupils were in Primary School but today there are 8,363,386 which
is an increase of 1,620 Percent.
At the time of Independence, there were 11, 832 Students in Secondary Schools but currently there
are about 1.7 Million students which is a phenomenal increase of 15,000 Percent. The number of
University graduates has increased from 14 to 155,575 graduates during the period.
Further efforts have been made by the government to increase access to Tertiary Education through establishment of a Loans Board that is charged with providing finances to students joining higher institutions of learning.
These achievements demonstrate government’s commitment to improve the education sector. The
situation has been further boosted by our recent push to have a Secondary School in every Ward
throughout the Country. The government policy is to make sure that no pupil walks more than
seven kilometres to school.
It is my belief that investment in human capital is one of the best forms of social security. I
therefore urge this conference to design ways of increasing access to education for our young men
and women.
Since education is also a big component of Social Protection, I would urge you to design
methodologies of assisting social security members to make the most of this opportunity.
Distinguished delegates,
The Government of Tanzania commends the existing social security funds in the country for their
contribution to social and economic development. For example, in 2010 they jointly contributed up
to 10 Percent of the country’s Gross Domestic Product (GDP).
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 Tshs. 33 Billion
(US$ 29,137.9 million).
The other joint project is the Arusha-based Nelson Mandela Institute of Science and Technology
which has cost Tshs. 42 Billion (US$ 31,626.5 million) until its completion.
We take pride of these investments not only for the erected structures or expected incomes but also in the jobs created with resulted multiplier effects to other socio-economic sectors.
It is my sincere belief that the deliberations of this meeting will provide even more impetus to
further expand the existing inter and intra fund relations.
Further, I urge Africa’s pension funds to invest in desirable socially responsible projects because
they stand to greatly benefit their respective countries.
Tanzania’s experience has shown that such projects have handsome returns, create jobs and above
all, help to solve social problems.
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 Infrastructure
Fund for Africa that was established in the early 2000s is a case in point here.
Ladies and Gentlemen,
Payment of adequate member benefits is also another challenge. There have been complaints by
some members of not being satisfied by the amounts they receive either as pension or as short term benefits.
This is understandable on one hand but on the other hand the prevailing bad economic conditions do not help to address this challenge either. Yet it is upon the pension funds to do everything possible in their powers to constantly improve benefits to their members.
I am informed that some funds have excelled in using new Information Technology (IT) to provide
members’ contribution balances online. Whilst this is all commendable development, I urge all
pension funds to constantly review their benefits and pension rates for the betterment of their
members’ lives.
I also call upon them to increasingly use IT in the provision of contribution status to save members’
time.
Ladies and Gentlemen,
I am told that one of the topics at this Forum is related to social security developments and trends in
Africa. Though the entire world is currently wobbling in hard economic times, impoverished Africa
is suffering even more. Thus our biggest challenge in the continent is to reassess the magnitude of
our predicament with a view to charting out the best possible way forward.
This requires apt means and expertise which are not so readily available in our countries. I believe
through co-operation with ISSA we can diagnose our problems and draw a road map out of them.
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. It is my hope that this forum will come up
with answers to these and address other pertinent questions. This could help us in Tanzania and
Africa in general to resolve one of the biggest sticking points of our times.
Ladies and Gentlemen,
The other issue is the role of Social Security Institutions in improving adequacy of benefits. As we
all know, adequate benefits are prime reasons why people join social security funds. Whilst this is
true, my view is that the crux of the matter is how to strike a balance between providing adequate
benefits and remaining financially buoyant, irrespective of galloping inflation rates. I trust this
forum will come up with viable solutions.
Ladies and Gentlemen,
Technological Innovation as a strategy to improve service quality is another issue. There is no doubt that changes in technology have revolutionized the way we do business.
Likewise, new Information Technology (IT) has moved social security functions to new heights.
For example, social security funds are increasingly posting balances of members’ contributions
online. This makes it easier for members to get updates of their contributions at a click of a button
on their mobile handsets. Again, due to new technology, payment of member benefits is
increasingly taking a shorter time than it was before.
I sincerely trust that this forum will compare notes on this and other technological developments
with a view to making it possible for delegates to pick new innovations from each other.
Distinguished delegates,
Finally, let me welcome you all once again to Arusha and wish you fruitful discussions. Please be
comfortable and feel at home. I am sure you will find this place to be a home away from home.
With these remarks, it is now my pleasure to declare the Regional Social Security Forum officially
open.
Thank you for your attention.
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