Social security schemes for industrial economy
The state has acknowledged its wiliness to expedite removal of all barriers and hurdles that hinder social security schemes from performing well in the country’s industrial economy development.
A Minister of State in the Prime Minister’s Office (Policy, Parliament, Work, Youth and the Disabled), Ms Jenista Mhagama, said here yesterday when opening a technical working session that has brought together managers of social security funds to deliberate on their position towards supporting industrial economy.
The participants included senior managers from LAPF, PSPF, GEPF, NSSF, NHIF and PPF. Others in attendance were Home Affairs Minister, Mr Mwigulu Nchemba and Health, Community Development, Gender, Elders and Children Minister, Ms Ummy Mwalimu.
“The government is ready to scrap all pieces of legislation that frustrate your participation. We understand that other related obstacles include limited infrastructure, unreliable power and unsatisfactory water supply,” she said.
The minister said the government will work closely with the regulator, Social Security Regulatory Authority (SSRA) in analysing and making the needed amendments on legislations affecting the schemes’ participation.
She explained that the government has resolved to involve social security funds in its quest for an industrial revolution considering that the funds and members will also benefit. About 2.5 million Tanzanians are active members of social security funds.
However, the government is contemplating raising by 75 per cent the total number of active members to 20 million by 2025. According to the minister, investment in industrial economy will help generate new jobs by 40 per cent.
“Thus we expect the social security schemes to help invest in the value chain industries, changing livelihoods and spurring economic growth,” Ms Mhagama noted at the opening ceremony.
The state assured investors of available markets, adding further that the investment by social security funds will transform economies for individuals, communities and the nation at large. Home Affairs Minister, Mr Mwigulu, told the delegates that his ministry had undisputed market to start with shoes for the uniformed personnel.
“The ministry has been spending billions of shillings in importing shoes for officers (Police, Immigration and Prisons), yet some products are substandard.” He explained that the prisons unit commissioned in manufacturing shoes is facing infrastructure challenges as most machines are dilapidated and those in use do not meet demand.
In addition, he said that Prisons have arable land suitable for sugarcane growing. “We all know the demand. Other than the Police or Prisons the general public can make a good market for quality finished products.
” Health Minister, Ms Mwalimu on her part said the budget allocation for medicine and medical equipment rose to over 200bn/- from 29bn/-. Unfortunately nearly all the products are imported. She said the market for medicine and medical equipment is immense. “You just need to invest in quality products and place a competitive package.
” To start with, she said, schemes can invest in anti-biotics factories. She challenged other schemes to enter into partnership with NIHF in investing in medicine and medical equipment, insisting that the market was available in Uganda, Rwanda, Burundi, Zambia, DRC and Malawi.