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.
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
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.