Opening up the pension sector will expose the public social security provider to unfair competition, the head of the Tanzania Social Security Fund, has warned.
Speaking in an interview early in the week, Mr Crescontious Magori, the director of operations, Tanzania National Social Security Fund, said private sector players are normally motivated by profit rather than the need to secure the long-term future of the population.
He said: “liberalisation will not solve the sector problems. This is because there are things that should primarily be safeguarded by the state and not the private sector. And social security is a social good that should be provided by the public social security provider—NSSF.”
He continued: “If liberalisation must happen then the competition should not be with the public social provider but between the private sector players. NSSF should always have an upper hand. “This is the advice we can give, however it is up to the government here to decide which route it wants to take.”
The NSSF is currently being supervised by the Ministry of Finance because the institution according to President Museveni, was performing poorly under the Ministry of Gender Labour and Social Development.
Meanwhile, speaking at a recent training that has gathered regional public social security providers across East and Central region to discuss areas of collaboration, the NSSF acting managing director, Ms Geraldine Ssali Busuulwa, said Uganda is looking to learn from the public regional social providers with exemplary practices.
She said: “We need to strengthen our data. We must be accurate with our accounts and other important information.”