The Long Term Saving Scheme (EjoHeza) is no longer part of performance contracts – commonly known in the country as ‘imihigo’ — at the district level — which resulted in a drop in contributions to this plan chiefly meant for pension for informal sector workers, The New Times understands.

Data from the 2022/2023 performance highlights of the Rwanda Social Security Board (RSSB) – the scheme administrator – show that contributions to EjoHeza experienced a dip of 16 per cent, from Rwf13.2 billion as of 2021/2022, to 11 billion as of 2022/2023, due to removal of related targets from districts’ imihigo.

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But, the number of EjoHeza subscribers increased by 36 per cent to 3.26 million in 2022/2023, from 2.41 million in the previous financial year, according to information from RSSB. In 2022/2023, subscribers who were active savers into EjoHeza rose by 41 per cent to 2.72 million, from 1.95 million in the previous year, it added.

Although the scheme experienced a 16 per cent dip in contributions, RSSB management said it continues to find ways to increase the collections of contributions.

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The New Times was informed that some schools in the City of Kigali, were telling parents to start saving for their kindergarten and primary school children in EjoHeza, in line with meeting targets set under district performance contracts — despite the fact that the scheme is voluntary, as per the law of June 29, 2017 that established it.

According to information from the Ministry of Finance and Economic Planning (MINECOFIN), it [EjoHeza] was removed [from district imihigo] "to reflect the voluntary nature of the scheme where it was considered more appropriate to sensitise members of the benefits and what they stand to gain, as opposed to setting hard targets for mobilisation.”

On the way forward after such a decision, MINECOFIN pointed out that RSSB and districts need to streamline their awareness campaigns on the scheme.

"It is more important for citizens to understand the futures and the benefits of the scheme and educate them on the benefits of joining. This is the only way we will drive EjoHeza savings persistence,” MINECOFIN indicated.

While speaking during the 2019 National Umushyikirano Council held in December 2019 in Kigali, Prime Minister Edouard Ngirente said that mobilising more savings into EjoHeza Long Term Savings Scheme was integrated into districts’ performance contracts – Imihigo – for the financial year 2019/2020.

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The provincial coordinator in charge of mobilisation and partnerships at EjoHeza, Bernard Kayumba, told The New Times that the inclusion of the scheme in district performance contracts was contributing to its progress, but underscored its voluntary basis.

"EjoHeza is a voluntary scheme; what needs greater effort is mobilisation that makes a Rwandan understand the importance of this initiative and subscribe to it and make savings into it so that they are able to get pension during their retirement,” he said.

"As different concerned entities, we will continue to partner in that campaign so that a Rwandan understands the value of savings, develop a savings culture, such that a person enjoys a decent living as a result of the savings they made,” he said.

EjoHeza objectives are fostering a culture of saving among the citizen/residents in Rwanda, universal access to pension and social security inclusion, financial inclusion, economic growth, and poverty alleviation to attain higher standards of living, according to RSSB.