The National Population Council which tracks population issues wants government to develop a clear vision and long-term financing strategy for social protection in Uganda. This is part of the recommendations outlined in the latest State of Uganda Population report 2019.
The report titled, “Promote Social Protection: Ensure Equity and Equality in harnessing the Demographic Dividend”, elaborately explores the role of social protection in achieving Uganda’s development agenda through turning the current demographic structure of a largely young population into an opportunity.
“In order to enhance political will and funding for increasing investment in social protection, Government should clearly lay out the costs and strategy for financing the proposals in the social protection vision (section 4.6.5) as part of the next 10-Year Perspective Plan and Third National Development Plan (NDP III) and the social development sector plan,” reads part of the report.
Social protection financing remains one of the core challenges for increasing coverage in Uganda. Despite a clearly laid out vision in the National Social Protection Policy (2015), the limited funding has seen its implementation restricted to a few components especially those that have attracted development partner support. At an estimated 4.5% of the population covered by some form of social protection, the levels of vulnerability are still very high. Currently, the Government of Uganda invests around 0.78% of GDP in social protection.
The report further recommends building a comprehensive social security system that covers everyone both in the formal and informal sector workers.
“Most countries that have achieved widespread social security coverage have done so through a multitiered approach that offers: (1) a guaranteed, adequate level of support for the vast majority of the population who are on low incomes and most of whom work in the informal economy, (2) mandatory, higher-level contributory social security benefits for those on higher incomes, and, (3) voluntary insurance for those who can afford additional protection,” reads the report
Such a system, the report says, if well designed, enables a smooth transition for people with lower incomes to begin to access a fully functioning contributory system as their incomes rise as part of an inclusive growth agenda.
The report also calls for fast-tracking of the reforms to convert the Public Service Pension Scheme into a contributory scheme and amendments to the NSSF Act.
“The payment of lump-sum benefits by the NSSF is, in effect, a transfer of the financial market risk to the individual; particularly in the absence of a well-developed annuities market. Government should therefore consider the option of converting the NSSF into a defined benefit social insurance pension scheme as a strategy to minimise the risk to individual members and enhance the value and range of individual pension benefits,” says the report.
Still, on the NSSF reforms, the report says that it might be a cheaper option for the context of Uganda, to provide a broader and adequate range of benefits through a pooled arrangement; while providing incentives to attract more contributors to the scheme.
The State of Uganda Population Report 2019 shows the potential of social protection systems to promote inclusive development that leaves no one behind—to prevent poverty, reduce inequality and promote social inclusion. It highlights that some groups of the population are unduly deprived of social protection and examines the barriers that these groups face.
As UPFSP’s Advocacy advisor, Flavia Kabahenda Rwabuhoro, argues, the focus on social protection by the National Population Council is an important milestone that underscores the interest in placing people at the core of Uganda’s national development.
“We need to start appreciating, as the report illustrates, that social protection cannot be approached as projects but rather a system. Different stages in the human lifecycle have specific challenges and opportunities and interventions have to be able to run not just a part of, but, the entire lifecycle,” she says.
