On May 17th, 2023 Rwanda’s Long-Term Savings Scheme, EjoHeza, scooped a certificate of merit by International Social Security Association (ISSA) for its innovative solutions for pension coverage extension to the informal economy in Sub-Saharan Africa.  

 

The award is from the results of the competition for the ISSA Good Practice Awards for Africa 2023 presented at the opening day of the ISSA Regional Social Security Forum for Africa, 17-19 May 2023 in Abidjan, Côte d’Ivoire.  

 

Inspired by the International Social Security Association (ISSA) Guidelines on Administrative Solutions for Extending Pension Coverage, &following a successful rollout of universal health insurance scheme, in December 1998, Rwanda introduced a long-Term Saving Scheme, EjoHeza,in the National Social Security Pension System.  

 

This is a second pillar voluntary public pension model (defined contribution) accessible &affordable to informal sector workers. Therefore, EjoHeza has provided a vehicle that people in the informal economy can use to save for retirement &a strategy for pension coverage extension  

 

Innovative strategies followed to achieve EjoHeza objectives include Government incentives, digitalization that facilitates easy registration and payment of contributions and benefits using Cell phone, attractive design offering pre-retirement benefits, extension of coverage to the children aged under 16 years and EjoHeza mobilization approach and implementation strategies where public education and awareness efforts involve central, local government institutions and organizations including cooperatives, associations, youth,  

 

As of March 2023, the scheme has registered 3.1 million individuals, or 23.4 % of the Rwandan population, or 38.7% of the working age population, many of whom are from low- income households.The number of active savers in EjoHeza was 2.6 million as of March 2023. RSSB data show that as of March 2023 about 49 % of the subscribers in #EjoHeza are women, while account for only 32% of total contributors in the RSSB formal sector scheme.  

 

Informal sector workers comprised 87% of savers, while 12% were from the formal sector. As of May 2023, the cumulative subscribers in #EjoHeza are 3,223,205 (50.6% male and 49.4% women) and the cumulative savings are 45,4 billion Frw.  

 

Speaking at the award ceremony, RSSB, Chief Benefits Officer, Dr Regis HITIMANA said:’’ “’The award testifies the commitment of the Government of Rwanda to delivering equitable social security to all Rwandans, it is also in recognition of the impressive work done by the Government of Rwanda over the last decades’’.