SSFR increases investment

The Social Security Fund of Rwanda (SSFR) has increased its equity investment, boosted by the fund’s efficiency that has improved collections from contributors. Statistics from SSFR show that its investment portfolio has grown at an annual average of 23 percent to Rwf157.3 billion this year from Rwf37.8 billion in 2003 as contributions rose from Rwf5.8 billion to 27 billion in the period under review. The Fund’s membership also increased as active employers rose from 4,099 in 2003 compared to 13,258 this year, an indication that more people are now saving their money through the public pension body. “As contributions increased, the Fund needed to reinvest the contributor’s money to make more returns. Before, we just had small investments in real estate so we had to expand our investment portfolio,” Afrique Ramba, the Acting Managing Director of SSFR said. SSFR’s major foreign equity investment is in Kenya’s largest telecom operator, Safaricom, in which the pension body invested $7.6 million (Rwf4.4 billion). The number of declared employees rose from 179,720 in 2003 to 306,561. Employers and employees increased at an average rate of 16.8 percent and 8.5 percent respectively. Recently the Ministry of Finance, the body the regulates SSFR, announced the authorising of Rwanda Revenue Authority (RRA) to collect contributions on behalf of the Social Security Fund of Rwanda (SSFR) and RAMA. Ramba said that the move will not in anyway affect the SSFR’s investment or operations. “RRA will be collecting the funds on our behalf and bringing them directly to us, which will reduce the pension’s load.” Ends

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SSFR increases investment