Rwanda Social Security Board eyes major investments in 2024

Rwanda's pension scheme is on the verge of substantial growth and innovation, with the Social Fund recently reporting a 14 percent increase, pushing assets under management to an impressive 2 billion US dollars as of 2024. In a recent exclusive interview with the CEO of the Rwanda Social Security Board (RSSB) on CNBC Africa, key insights were shared on how the country plans to capitalize on this success and expand its reach even further. The main goal for RSSB is to create long-term saving opportunities for the informal sector, a demographic that often faces unique challenges in pension planning. In developing markets like Rwanda, traditional pension schemes designed for the formal sector may not be effective. The informal sector experiences irregular, low, and seasonal incomes, making it difficult for individuals to save for retirement. To address this, RSSB launched Ejohesa, a flexible and voluntary saving scheme targeted at the informal sector. Ejohesa allows individuals to save at their own pace, with no mandatory contribution amount and incentives such as government-matched contributions and bundled life insurance products. Moreover, RSSB is exploring innovative strategies to further enhance Ejohesa, including integrating savings into daily transactions through mobile money platforms and expanding withdrawal options to meet immediate needs while still maintaining long-term financial security. In addition to targeting the informal sector, RSSB is also focusing on leveraging technology to improve member experience and increase transparency. By providing intuitive digital platforms like 'Emisanzu' and 'Ishima,' members can track their contributions, monitor savings growth, and make informed decisions about their financial future. The average return rate for Ejohesa stands at an impressive 11 percent annually, showcasing the potential for significant long-term savings. Looking ahead, RSSB is poised to tap into the diaspora market and explore new investment avenues that benefit its members. The organization aims to enhance financial literacy and create innovative asset classes to maximize returns for savers. By embracing technological disruption and digital transformation, RSSB is on track to becoming a fully online service provider by 2025, offering seamless and efficient services tailored to the evolving needs of its members. With a commitment to continuous innovation and data-driven decision-making, RSSB is well-positioned to lead the way in the pension industry in Rwanda and beyond. As Rwanda's tech hub continues to thrive, the future of the pension sector looks bright, with RSSB at the forefront of driving change and setting new standards for financial inclusion and security. By harnessing the power of information, technology, and strategic partnerships, RSSB is paving the way for a more sustainable and prosperous future for pensioners in Rwanda.