East Africa’s countries race to form inclusive, affordable pension schemes for informal sector
East African Community partner states are in the process of creating micro-pension schemes for employees in the informal sector to address the low pension coverage in the region, estimated at less than 10 percent.
Read also Bright Africa 2020 Pension Industry. Modernising pension policies to future-proof long-term savings
A new pension sector survey by global investment firm RisCura shows that Rwanda, Uganda and Kenya are among African countries racing to create affordable and all-inclusive old-age saving schemes for the informal sector workforce. Other countries are Nigeria, Ghana and South Africa.
The survey report dubbed Bright Africa 2020: Pension Industry shows that without progressive reform to the pensions and savings environment — particularly for those in the informal sector — governments across Africa are likely to face mounting pressure to provide appropriate social welfare.
Currently, the global population of 60 to 70 year-olds is slightly over one billion, with Africa constituting seven percent (74 million). By 2060, this global population (60 to 70 years) will be approximately 2.3 billion, with Africa contributing 13 percent (300 million) of the total of old people.
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