RSSB mulls new mechanism to ease access to affordable housing

 

Engineers inspect the Songo Songo gas plant in Tanzania. The entry of NSSF into Pan Africa Energy will help the company raise $300 million in counterpart funds needed to start a $1.2 billion gas pipeline. PHOTO | FILE | NATION MEDIA GROUP

By: Edwin Musoni

Rwanda Social Security Fund (RSSB) is considering introducing a new scheme dubbed ‘Provident Fund’ as part of efforts to ease access to affordable housing in the country.
The Fund, if established, will benefit salaried workers who will contribute a certain percentage while the government would top up.

Appearing before the Parliamentary Standing Committee on Social Affairs justify amendment of the law establishing RSSB, yesterday, the Director General of RSSB, Daniel Ufitikirezi, told MPs that plans are underway to establish the Fund.
“We are still challenged with the modalities but as soon as the government secures funding through the Budget and invests its portion in the Fund, we will kick off,” Ufitikirezi said.
He explained the difference between the high end, affordable and low cost housing, adding that the Fund will benefit those going for the affordable housing units.
Ufitikirezi said 10 per cent of the employee’s salary may be deducted and invested in the Fund, while government would top up with a 25 per cent to make an average of 35 per cent that would allow the beneficiary to access a morgage
“A high end house goes for Rwf100 million and above, an affordable one ranges between Rwf50 and Rwf60 million, while a low cost house goes for between Rwf15 million and Rwf25 million,” he said, adding that they already have running projects catering for low cost housing.
Issues regarding Provident Fund came to light when some committee members disagreed on what should be embedded in RSSB Bill as its responsibilities.
The chairperson of the committee, MP Marie Rose Mureshyankwano, said the Bill should not mention schemes that are not in place.
“What if we structure this law to provide for the establishment of the Fund and in the end the Fund is not established?” she said.
The issue of Provident Fund had come up in Parliament earlier under the Pension Bill but the House ordered the separation of the Pension Bill and that establishing the Fund.
MP Esperance Mwiza told members that clauses in the RSSB Bill relating to the Provident Fund should not be removed since the establishment of the Fund is still under consideration.
“This Fund did not fail as it is assumed. All we wanted was for it to governed by a separate law but under the management of RSSB,” she said.
MP Joseph Desire Nyandwi backed Mwiza’s idea, saying the committee will not ignore the need to mention the Provident Fund.
Some countries like Singapore have used their social security systems to confront socio-economic challenges especially through the Provident Fund approach.