SSFR projects Frw4 billion

Social Security Fund of Rwanda (SSFR) is projecting its revenue to grow from Frw3 billion last year to Fw4 billion in 2008, a 33 per cent increase.

Social Security Fund of Rwanda (SSFR) is projecting its revenue to grow from Frw3 billion last year to Fw4 billion in 2008, a 33 per cent increase.

The fund will spend Frw46.7 billion during this year. The bulk of this expenditure – 34.1 billion - will go to investments while 4.5m in paying benefits.

According to the breakdown, operating expenses are expected to consume 6 billion. Expenditure on equipment will take Frw1,9 billion.

Combined with an opening balance of Frw14.5 billion, members contributions of Frw17 billion and investment revenues of Frw19.1 billion, the fund is projected to end the year with an overall resource envelope worth Frw50.7 billion. That represents a return on investment of almost 9 per cent, a figure that is sure to keep SSFR among the best performing corporates in the country.

"Based on our performance during 2007 and continued stakeholder support, commitment of SSFR management and staff, the targets and deadlines set in this year’s plan are achievable and will be realised," Henry Gaperi, Director General, SSFR said recently.

SSFR’s 5-year plan

Consistent with SSFR’s 5-year revised corporate plan which is drawn basing on the key functions of collecting contributions, paying benefits and investing surplus funds; the 2008 business plan is designed along the four objectives of ensuring financial sustainability, management and resource efficiency.

The plan also aims to develop a capable, efficient and responsive organisation that provides quality services to customers and meets other stakeholder requirements.

The business plan is broken into 46 main activities with set delivery times and specific performance indicators.

Each planned activity also falls under one or several of the 10 SSFR departments that will be responsible for implementing the planned actions within the set time limits.

Efforts to improve the social security coverage rate, promote employer compliance, strengthening inspection and ensuring the effective implementation of SSFR real estate projects are also planned during this period. The target is to register 1600 new employers, among them informal sector employers affiliated to SSFR.

Goal two

Activities under goal two include, the maintenance of proper records for effective financial accountability, modernising the accounting system, ensuring efficient management of the funds assets as well as rehabilitation and extension of SSFR headquarters and branch offices.

Timely preparation of financial reports and statements as well as efficient book keeping will be a key measure under this goal.

SWOT

Prior to putting the plan together, SSFR management conducted SWOT (Strengths, Weaknesses Opportunities and Threats) analysis. Among others, that analysis found SSFR to enjoy the advantages of a young, dynamic, qualified, skilled and motivated staff corps with well defined job descriptions, a decentralised management system that greatly helps service delivery, a committed management team leading the organisation.

Continuing support and goodwill from the government, cooperation with government institutions, a growing economy and stable political environment were identified as some of opportunities SSFR has.

Others are the existence of active government programmes to fight against widespread epidemics and measures to reduce road accidents and economic integration which widens investment.

The introduction of capital market and financial sector development programmes coupled with government efforts to promote good governance and transparency were also identified as opportunities.

Threats

Weaknesses and threats were perceived in the lack of information systems to analyze, appraise and monitor the investments; long process in adoption of laws and other regulations. Other were lack of an un-updated database; appropriate application software relevant to SSFR operations, absence of experienced actuaries and other industrial expertise.

It was also noted that poor documentation, a poor compliance culture among employers, narrow financial markets and a slow legislative process are some of the treats.

Gaperi explains: "Designing realistic plans requires a thorough understanding of the operating environment. The SSFR adopted this planning tool to scan its operating environment. By understanding our strengths or areas of deficit, SSFR can leverage its strengths; correct its weaknesses while capitalising on opportunities and appropriate interventions to mitigate against potential threats."

Ends

 

Have Your SayLeave a comment