NASSIT and Government Unveil Milestone Report for Informal Sector Social Security Scheme
On Thursday, September 5, 2024, the National Social Security and Insurance Trust (NASSIT), in partnership with the Ministry of Employment, Labour and Social Security and various stakeholders from the informal sector, celebrated a significant milestone at the Freetown International Conference Centre. The occasion marked the receipt and presentation of the Inception Valuation Report for the proposed Informal Sector Scheme, an initiative set to broaden social security coverage across Sierra Leone.
This landmark event attracted a diverse group of attendees, including Government Ministers, Development Partners, Civil Society Organizations, representatives from the informal sector, and media personnel. The gathering underscored the scheme’s importance in extending social protection to a larger segment of the Sierra Leonean population, many of whom have previously been outside the formal social security framework.
Minister Swarray’s Vision and Government Support: The Honorable Minister of Employment, Labour and Social Security, Hon. Mohamed Rahman Swarray, who also chairs the Steering Committee for the informal sector scheme project, expressed profound satisfaction with the progress achieved. He described the unveiling of the inception report as a significant step towards fulfilling a long-standing vision of expanding social security coverage. Minister Swarray emphasized that this initiative is a dream realized for many, including His Excellency Retired Brigadier Julius Maada Bio, who has been a strong proponent of the scheme. The Minister reaffirmed the government’s unwavering support for the scheme’s implementation and urged the NASSIT team to expedite the extension process to ensure timely benefits for the informal sector.
Director General’s Insights and Strategic Planning: Director General Mohamed Fuaad Daboh delivered the keynote address, highlighting the crucial role of the informal sector in Sierra Leone’s economy. The informal sector, which includes a wide array of activities such as small-scale trading, artisan work, and street vending, is a significant contributor to job creation and economic development. Despite its importance, this sector has traditionally lacked access to formal social security protections.
Daboh provided a historical perspective, noting that NASSIT has predominantly covered the formal sector, which represents less than 10% of the active labor force in Sierra Leone. By 2007, the registration of eligible members in the formal scheme had nearly reached its limit, necessitating a move to extend coverage to the informal sector. Initial efforts to address this gap faced administrative hurdles, but the current administration’s renewed focus and strategic planning have reignited progress.
Under Daboh’s leadership, NASSIT integrated the expansion of coverage to the informal sector as a flagship program in its 2019 Strategic Plan. The establishment of an in-house Technical Committee, tasked with reviewing previous efforts and formulating new strategies, marked the beginning of a more structured approach. The engagement of the International Labour Organisation (ILO) in 2020 provided essential technical support, leading to the formation of the Ministerial and Technical Committees in April 2023. These committees have been instrumental in advancing the proposed scheme by conducting diagnostic studies, engaging with over 60 informal sector groups, and collaborating with ILO actuaries to define the benefits package and develop long-term projections.
Implementation Steps and Collaborative Efforts :Director General Daboh outlined several critical steps required for the successful implementation of the informal sector scheme. These include conducting nationwide stakeholder engagement to inform and involve various groups, developing a comprehensive framework for the scheme, seeking Cabinet approval, and establishing operational offices across the country. He expressed gratitude to President Julius Maada Bio, Minister Swarray, the ILO, the World Bank, and all those who have contributed to making the scheme a reality.
International and Local Support The ILO Consultant, Damien Bachiebbi, conveyed his appreciation for the opportunity to contribute to the scheme. He acknowledged the Sierra Leonean government’s political will as a crucial factor in the scheme’s success. Bachiebbi emphasized that the scheme’s design must address the unique challenges of the informal sector, which requires careful consideration to effectively advocate for workers’ rights and interests while enhancing human capital.
UNDP Economic Adviser Mabulara Tsuene highlighted the vulnerability of informal sector workers, particularly in the context of the COVID-19 pandemic, which exposed significant risks and challenges faced by this group. Tsuene stressed that extending social security to the informal sector is not only beneficial for revenue mobilization and financial inclusion but also essential for mitigating risks and improving overall resilience. The UNDP’s commitment to supporting NASSIT and other stakeholders aims to position the scheme as a model for inclusive social protection in Africa.
Legislative and Organizational Endorsement: Hon. Rebecca Yei Kamara, Chairman of the Parliamentary Committee on Labour and Social Security, voiced her strong support for the scheme. She expressed admiration for the progress made and emphasized that the informal sector scheme represents a groundbreaking initiative that will ensure broader participation in NASSIT’s social security framework. Kamara affirmed that the legislative committee will provide necessary legislation, review, and oversight to support the government in implementing the scheme effectively.
Max Korombo Conteh, Secretary General of the Sierra Leone Labour Congress, extended his appreciation to NASSIT and all involved stakeholders. He acknowledged the support from international sister organizations, such as the Danish Labour Congress, in facilitating the inclusion of the informal sector.
