East Africa: Regional insurance association targets the informal sector
It wants to dispel the common view that insurance only covers employees in formal employment.The East and Central Africa Social Security Association (ECASSA) said at a training session this week in Kigali that it is looking to dispel
the common view that insurance only covers employees in formal employment.
"Social security institutions should cover everybody irrespective of what they do. People like journalists, lawyers, farmers, hawkers... everybody," said Patrick Ngwila, the manager of research and training at the regional association.
He added that ECASSA is currently training key players in the social security sector in Tanzania, Rwanda, Kenya, and Zambia on how to enhance service delivery and customer satisfaction, by attracting more customers from the informal sector by providing relevant social security products.
"The need for member institutions to extend coverage by going into the informal sector makes it important to build relationships in order to enable members enhance loyalty to the institutions," he pointed out, quoted by the New Times.
Mr Ngwila cited the example of Kenya's Mbao pension plan, which has been designed to specifically suit low-income earners, where an individual can contribute to as little as Ksh20 (€0.18) to the social security fund.
"This small amount contributed daily or weekly can accumulate and help someone pay school fees, or get small loans, among other benefits. This is what we should focus on as social security institution," he said.