Published on 07/10/2024
The National Social Security Fund (NSSF) has launched the Livelihoods Support Project to integrate informal sector workers, especially those in small-scale agriculture, into Uganda’s social security system.
Unveiled in Otuke district on October 4th, this initiative aims to broaden NSSF’s reach and provide social protection to workers traditionally excluded from formal savings systems. The project is a significant step towards achieving the Fund’s goal of enrolling at least 50% of Uganda’s working population by 2035. By enhancing both the capacity and willingness of informal workers to save, NSSF hopes to ensure financial security for millions of Ugandans.
Speaking at the launch, NSSF Managing Director Patrick Ayota emphasized the importance of this initiative, stating that the project is central to the Fund’s strategic vision of enrolling at least 50% of Uganda’s working population into the social security net by 2035.
“The Fund recognises that we must onboard the informal sector into the social security net, particularly those involved in small-scale agriculture, if we are to achieve the desired coverage of up to 15 million Ugandans,” Ayota said.
He highlighted that the grassroots informal sector, which includes small-scale agriculture, accounts for 4 million workers, many of whom do not save formally. “The NSSF Livelihoods Support Project therefore is a vehicle through which we can bring the unserved and underserved segment into the formal savings space by enhancing both their capacity and willingness to save,” he added.
Currently, the project is being piloted in four districts including Otuke in Northern Uganda, Kayunga in Central Uganda, and Sheema and Mitooma in Western Uganda. So far, over 10,780 new members have registered and begun saving with the Fund.
Dr David Ogong, the recently appointed NSSF Board Chairperson while representing the Minister of Gender, Labour, and Social Development commended the Fund for devising innovative ways of recruiting the informal sector workers.
“The recent changes in the law were premised on the fact that every working Ugandan has a right to social security and social protection. The Fund is no longer shackled by the law as was the case not so long ago but is now empowered to broaden its reach. I therefore encourage Ugandans to embrace this opportunity to ensure they are protected from life’s uncertainties. NSSF is the best national entity to guarantee this protection,” he said.
Dr. Ogong also noted that Uganda faces similar challenges as the global community in incorporating the informal sector into social security systems.
“The statistics are not pleasant. Globally, according to the International Labour Organisation (ILO), the informal economy workers make up a significant portion of about 55% of the global population who do not enjoy access to social protection at all, while many others are only partially protected,” he said, adding: “In Uganda, according to the UBOS, the informal sector workers – those who are employed, but without any social security cover in law or practice, are over 80% of Uganda’s workforce. Today therefore marks an important milestone in the NSSF’s journey to extend social security coverage to millions of underserved segments of the country’s workforce, mainly in the informal sector.”
The project is focused on existing community groups, referred to as “Livelihood Communities,” to fast-track their access to markets, training, and value addition to their goods and services. NSSF will gather data throughout the year to assess the project’s success, with plans to scale it nationally based on the outcomes.
The Livelihoods Support Project represents a bold and innovative approach to solving one of Uganda’s most pressing challenges which is extending social security to the millions who need it most.
