Buoyed by the growing revenue base, National Social Security Fund [NSSF] of Rwanda this year plans to invest Frw32 billion, doubling what was invested last year.
Management of the social security fund has invested people’s contributions heavily in real estates, banking, and insurance to generate profits.
“Last year investment returns were about Frw7.5 billion,” Daniel Kayonga, SSF communication officer said.
He is confident their investment target will be achieved saying, as the economy grows, new businesses are brought up, new employees are born and the contribution is increased.
More money is also to be generated from peoples’ contribution.
At least 1,600 new employers were identified, and 90 percent of them are already registered with SSF.
Through audits, SSF recovered Frw2 billion from 148 cases in its employer’s inspection move. These companies reportedly never used to contribute or contributed less for their employees, while Frw1.8 billion was got from arrears.
“Some employers are ignorant about the system and others cheat on their employees deliberately,” Kayonga said.
Normally the employer pays five of eight percent on total contribution.
Last year NSSF received contributions amounting to Frw13 billion, from 22,5477 active employers and Frw7. 5 billion as investment returns. 60 percent of the contributions are attracted through sensitasation, and 40percent through enforcement.