Based on the projected revenue and
expenditure figures, the pension body’s action plan for this year will
be implemented with a surplus amounting to Rwf1.3 billion
The
Social Security Fund of Rwanda (SSFR) is to spend Rwf50.6 billion this
year.According to the 2009 national pension body’s business plan,
investments and beneficiaries’ expenditure have the highest budget out
of the four projects.
In a breakdown, expenditure on benefits is
Rwf5 billion and investments Rwf38.7 billion. Operating costs and
equipments have a budget of Rwf6.1 billion and Rwf686 million
respectively.
This year’s investment budget is Rwf8.9 billion over the actual expenditure of 2008, which was projected at Rwf38.7 billion.
Last year’s investment expenditure according to the report was Rwf29.8 billion.
This
saw SSFR buy company shares especially in foreign entities such as
Kenya’s Safaricom. SSFR bought shares in Kenya’s telecom firm worth $7.6
million through the Initial Public Offer (IPO).
Some of the
investment projects identified include real estate projects, though the
body is challenged with lack of information systems to analyse, assess
and monitor the investments.
The investments are believed to be
directed towards the country’s development by realigning with Vision
2020. According to the business plan, SSFR will execute its four
expenditure projects by raising Rwf51.9 billion revenues this year.
Apart from the 2009 opening balance of Rwf4.5 billion, members’ contributions amount to Rwf24.4 billion
and investments and other revenues will makeup Rwf23 billion of earnings this year.
and investments and other revenues will makeup Rwf23 billion of earnings this year.
Based
on the projected revenue and expenditure figures, SSRF action plan for
this year will be implemented with a surplus amounting to Rwf1.3
billion.
The Chief Executive Officer (CEO) of SSFR, Henry Gaperi,
said that key priorities for the year 2009 include the implementation
of the new policy proposals especially the introduction of the Provident
Fund and Housing Scheme.
Other priorities highlighted include
the implementation of Rwanda Revenue Authority (RRA) and SSFR project.
This project will see RRA collect social security contributions.
Since
its inception, SSFR has been administering two broad branches of
pension and occupational risks despite the current initiatives to
introduce more products.
The operations of the body converge on
the two branches and are all geared towards achieving three principle
objectives of collecting contributions, paying benefits and investing surplus funds.
Currently,
Rwanda is reforming its pension system after its mismanagement before
and during the 1994 turmoil. The reforms are still in the infancy stage
and are expected to result in the mobilisation of sufficient savings for
investment and capital market development.
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