The Minister of Employment, Labour Relations, and Pensions, Mr Ignatius Baffour Awuah has disclosed that as of March 2023, the Social Security and National Insurance Trust (SSNIT) Scheme had approximately 1.8 million members. This figure indicates that roughly 8.1 million people within Ghana’s estimated working population of 9.9 million do not have any form of social security coverage
“The overwhelming importance of digitalisation today is there for everybody to see. I call on social security institutions within West Africa to take advantage of the emergence of digital technologies to bridge the wide coverage gap,” Mr Baffour Awuah stated at the SSNIT – International Social Security Association (ISSA) Technical Seminar in Accra.
The two-day meeting, themed “Digitalisation to Leverage Extension of Social Security Coverage in West Africa,” has drawn participants from across the West African sub-region.
The Minister pointed out that in Ghana, social security coverage has primarily concentrated on the formal sector, which accounts for 27.3 percent of the estimated working population of 9.9 million. He also mentioned that approximately 600,000 self-employed individuals now have some form of social security coverage.
Moreover, the Government’s digitalization agenda has played a significant role in the Employment, Labour, and Pensions sector in recent years. The Government is currently testing the Ghana Labour Market Information System (GLMIS), which is a web-based repository of labor market data and information. The GLMIS allows employers and jobseekers to connect regarding job vacancies, skills in demand, and other related matters. One of its unique features is that it provides real-time labor market information for policymakers, aiding in evidence-based national development planning, including the establishment of robust social protection programs.
Furthermore, the Government is leveraging digital technology to introduce a new software for the National Pensions Regulatory Authority (NPRA), which aims to automate regulatory processes, ensure real-time monitoring, and safeguard pension funds and investments.
This software will enable beneficiaries and service providers to interact with the NPRA remotely, saving time and money. It will simplify pension enrollment processes through the Ghana Card, streamlining the procedure and reducing the need for extensive documentation.
“Subsequently, this has led to a marked improvement in social security administration with enrolment increasing steadily.”
The Minister emphasized that the government will continue to harness technology to make SSNIT’s services more accessible to the public. In Africa, countries have been introducing innovations in social protection programs to enhance coverage. Despite these initiatives, social protection coverage remains relatively low in Africa.
According to the ISSA’s 2023 Report on Social Security Developments and Trends in Africa, only 27.1 percent of older persons in Africa receive old-age benefits, compared to a global average of 77.5 percent. Similarly, the report revealed that only 17.4 percent of the population in Africa is covered by at least one social protection benefit, compared to a global figure of 46.9 percent.
Ghana currently hosts the West Africa Liaison Office for the ISSA, taking over this role from Ivory Coast, which had hosted the office for several years.