Minister of Employment, Labour and Social Security, Mohamed Rahman Swarray and NASSIT Director General, Mohamed Fuaad Daboh
The National Social Security and Insurance Trust, together with the Ministry of Employment, Labour and Social Security and Stakeholders in the Informal Sector, on Thursday 5th September 2024, received the Inception Valuation Report of the proposed Informal Sector Scheme from the Consultant Actuaries at the Freetown International Conference Centre in Freetown.
This groundbreaking event, which is the precursor to the expansion of social security coverage to the greater majority of Sierra Leoneans, attracted Government Ministers, Development Partners, Civil Society Organizations, Stakeholders in the Informal Sector and the Fourth Estate.
Speaking at the occasion, the Honorable Minister of Employment, Labour and Social Security, who doubles as Chairman of the Steering Committee for the informal sector scheme project, Hon. Mohamed Rahman Swarray, expressed delight in witnessing this milestone event in the extension of Social Security coverage to the majority of Sierra Leoneans, adding that it was a dream come true. He reiterated His Excellency Retired Brigadier Julius Maada Bio’s enthusiasm for the establishment of this scheme for members of the informal sector and assured his audience of the Government’s overwhelming support for its implementation.
While thanking the Board, Management and Staff of NASSIT for a job well done, Minister Swarray called on the team to expedite the extension process as soon as possible. Delivering the keynote address and receiving the report, the Director General, Mohamed Fuaad Daboh, acknowledged the informal sector as a vital component of the national economy, as it plays a significant role in job creation and economic development, noting that it encompasses a wide range of activities, from small-scale traders and artisans to street vendors and other self-employed individuals, who operate outside the formal structures of the economy.
Updating members on the strides made by the Scheme, Mr Daboh stated that almost 22 years after its establishment, NASSIT covered largely the formal sector, which constitutes less than 10% of the active labour force in Sierra Leone, and that by 2007, the registration of eligible members into the formal scheme had almost reached saturation point.
There was, therefore, a need to extend coverage to the informal sector, he stated, adding that efforts were made to that extent, but were stalled due to administrative challenges. “Upon assumption of office as Director General, the desire to move this process forward, coupled with the desire of His Excellency, propelled the ambition to reactivate the process.
To achieve this, Management incorporated the expansion of coverage to the informal sector, as its key flagship programme in the 2019 Strategic Plan. An in-house Technical Committee was constituted with the sole mandate of reviewing previous efforts and mapping out strategies”, the Director General explained. Mr Daboh went on to state, “As a result of the work of the in-house Technical committee, Management, in 2020, engaged the International Labour Organisation (ILO) on the possibility of providing technical support to NASSIT for the expansion of coverage to the informal sector. The advice of the ILO facilitated the establishment of the Ministerial Steering Committee and the Technical Committee in April 2023”.
According to the Director General, these committees have been very effective in moving forward the proposed plan, as they, in collaboration with ILO, accomplished the following: conducted a diagnostic study of the situation of workers and economic units in the informal economy; engaged over 60 informal sector groups to validate the result of the focus group discussions and to also educate those groups on the proposed scheme; hired the services of ILO Actuaries to conduct an inception actuarial valuation of the proposed scheme to define the benefit package and make long-term projections.
In conclusion, the Director General highlighted the following critical steps in the establishment of the informal sector scheme: nationwide stakeholder engagement, developing a framework for the scheme, seeking Cabinet approval, and setting up operational offices nationwide, among others.
He expressed gratitude to His Excellency the President, Rtd Brig. Julius Maada Bio, the Hon Minister of Employment, Labour and Social Security, Hon. Mohamed Rahman Swarray, the ILO, World Bank, the Chairman of the Board of NASSIT and all those involved in making this dream a success.
In his statement, the ILO Consultant, Damien Bachiebbi, said that he was happy to be in Sierra Leone as part of this scheme, and appreciated the political will of the government in this process, as it was of great significance for the success of the scheme, adding that the scheme would advocate for the rights and interests of members in that sector and improve human capital. He, however, cautioned that designing such a scheme would not be easy, due to the nature of the targeted audience.
On her part, the UNDP Economic Adviser, Mabulara Tsuene, referenced the Covid 19 pandemic and the loss of lives and property to demonstrate the vulnerability of people in the informal sector. She explained that extending social security to this category of people is not only good for revenue mobilization and inclusive financial services but also for mitigating the high risk they are prone to, adding that UNDP is committed to working with NASSIT, stakeholders and the Government of Sierra Leone to make the Informal Sector scheme an example in Africa.
In her statement, the Chairman of the Parliamentary Committee on Labour and Social Security, Hon Rebecca Yei Kamara, said that she had been following the efforts of all involved and was impressed with the development so far, stating that the informal sector scheme would be a groundbreaking move to help all to be part of NASSIT, as NASSIT is for everybody. She added that as legislators, they would provide legislation, review and oversight for the government to do the right thing.
The Secretary General of the Sierra Leone Labour Congress, Max Korombo Conteh, thanked NASSIT and all stakeholders for the good work. He said that sister organizations like the Danish Labour Congress have helped to ensure they include the informal sector in their operations.
