ISSA Technical Seminar: Mohamed Fuaad Daboh Highlights Challenges and Solutions for Social Security Fund Investments
Mohamed Fuaad Daboh, Director General of the National Social Security and Insurance Trust (NASSIT), delivered a compelling address at the International Social Security Association (ISSA) Technical Seminar held in Abidjan, Côte d’Ivoire. The event, which began on September 9 and runs through September 11, 2024, centers on the theme: Investing Social Security Funds for Viable and Sustainable Social Protection Systems.
In his keynote speech during the opening ceremony, Daboh, who also serves as Vice President of the ISSA Technical Commission on the Investment of Social Security Funds, underscored the paramount importance of careful management in the investment of social security funds. He emphasized that social security is not merely a financial arrangement but a fundamental human right that must be administered with the utmost responsibility to ensure that citizens receive their entitlements under the most favorable conditions.
Daboh outlined the core functions of social security administration, which include:
- Collection of Contributions: Gathering financial contributions from employers and employees to sustain the fund.
- Payment of Benefits and Services: Disbursing financial support and services to beneficiaries as needed.
- Building and Investing Reserves: Accumulating surplus contributions into reserves, which are then invested to provide long-term financial stability and meet future obligations.
He highlighted that while each of these functions presents its own set of challenges—such as evasion, default, and errors in benefit payments—the investment of reserves poses a distinct set of risks. Daboh pointed out that inadequate risk assessment and poor investment choices can lead to substantial financial losses, compromising the system’s stability and its ability to deliver on its promises.
“The investment of social security funds is a central activity in the governance architecture of social security schemes,” Daboh noted. “Errors in risk assessment can result in severe financial setbacks. Therefore, it is crucial that we approach investment decisions with a high degree of vigilance and diligence.”
Daboh also discussed the broader implications of effective investment management. Beyond ensuring the long-term sustainability and intergenerational equity of social protection systems, well-managed social security reserves can play a significant role in supporting government development policies and stimulating economic growth. By investing in various sectors, these funds can contribute to broader economic stability and development.
He praised the ISSA Technical Commission for its role in setting global standards and providing guidance on the investment of social security funds. The Commission, one of thirteen technical bodies within ISSA, is instrumental in developing and disseminating best practices and guidelines for social security administrators worldwide.
In his address, Daboh also expressed his gratitude to several key individuals and organizations. He thanked Minister for Employment and Social Protection Adama Kamara for the ongoing support and guidance provided to social security institutions in Côte d’Ivoire. He acknowledged ISSA Secretary General Marcello Abi-Ramia Caetano and Denis Charles Kouassi, Director General of the IPS – National Social Insurance Fund of Côte d’Ivoire, for their efforts in organizing and hosting the seminar.
The ISSA Technical Seminar serves as a critical platform for social security professionals to exchange knowledge, discuss investment strategies, and address challenges. It aims to foster collaboration among practitioners and enhance the overall effectiveness and sustainability of social protection systems on a global scale.
