ILO applauds NSSA’s loan facility for pensioners
THE International Labour Organisation (ILO) has applauded the National Social Security Authority (NSSA) for playing a significant role towards the eradication of poverty among pensioners and other beneficiaries of the compulsory pension fund.
Speaking on Thursday at the official launch of a US$2m revolving facility to assist NSSA pensioners with income-generating projects, ILO country director for Zimbabwe and Namibia, Hopolang Phororo said social security schemes were a critical part of the global development agenda as they are widely accepted globally as tools for poverty reduction.
“It is heartening to note that the objectives of the revolving fund we are launching today resonate with the United Nations’ Sustainable Development Goals, particularly, Goal Number One, which seeks to end poverty in all its forms everywhere as well as to expand social protection programmes, targeting appropriate schemes to the poor and most vulnerable to reduce poverty.
“For social security benefits to effectively reduce poverty, they must be adequate. It is important for governments and their social security administration agencies to explore measures that augment statutory monthly social security benefits to build resilience. This revolving fund is one such a measure. The fund is critical for the empowerment of pensioners as well as for fostering inclusive economic development,” said Phororo.
The NSSA pensioners’ loan scheme is currently being administered by POSB and NSSA’s wholly owned National Building Society (NBS), which collectively account for over 70% of NSSA beneficiaries. Banks catering for the remaining 30% will be added in due course.
Pensioners will be able to access up to 10 times their monthly pay-outs, payable over 18 months at an annual interest rate of 10%.
NSSA board chairman Percy Toriro said the pension fund had a pivotal role towards the attainment of Vision 2030.
The national vision as set by government is for Zimbabwe to attain upper middle-income status by 2030.
“My board, which recently assumed office, is encouraged to note that the new NSSA, which is undergoing a rebranding process is determined to fulfil its mandate. The NSSA you see today is very ambitious and has set a target of becoming a world class provider of social security by 2030,” he said.
“This vision is aligned to the national vision of becoming an upper middle-income economy by the same year. Aligning its vision to the broad national agenda demonstrates that NSSA’s leadership is fully aware that the authority has a vital role to play towards Zimbabwe’s prosperity.”
Toriro’s sentiments were echoed by NSSA’s general manager Arthur Manase who said the authority was determined to significantly address issues to do with pensioners’ welfare.
“NSSA is continuously pursuing means and ways to alleviate the plight of pensioners cognisant of the fact that monetary benefits can never be sufficient, not only in Zimbabwe, but even the world over.
“We have had to think outside the box in our quest to improve the welfare of our beneficiaries. The NSSA pensioners’ loan facility, in which we have invested US$2 million, is one such initiative,” said Manase.
He paid special tribute to NSSA pensioners for being organised and proactively pursuing their interests.
“NSSA pensioners do not just ask for more, but also proffer solutions. The revolving facility for income-generating projects came from pensioners, through their associations. They spoke, we listened and now we have delivered.
“At NSSA, we have declared 2021 a year of fulfilling the desires of the pensioners. Igore