NSSF launches project to recruit informal sector workers

OTUKE; Friday, October 4, 2024: The National Social Security Fund (NSSF) has today launched its Livelihoods Support Project, an initiative through which it will recruit workers in the informal sector that are outside the social security coverage in Uganda.

During the launch in Otuke district on Friday, the NSSF Managing Director, Patrick Ayota said that once implemented across the country, the Livelihoods project will, in the long run, contribute to the Fund’s strategic objective of enrolling at least 50% of Uganda’s working population 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: 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 NSSF Livelihoods project targets existing groups referred to as the “Livelihood Community” to accelerate their access to new skills and knowledge, productive assets for value addition to their goods and services, markets for their goods and services, and higher income-earning opportunities.

The Fund will gather sufficient data to evaluate the pilot's success within the next year, and the lessons learned will help establish a detailed policy framework for sustainably scaling the initiative nationwide.