More than 103,292 self-employed individuals have joined the Social Security and National Insurance Scheme (SSNIT) through the newly launched Self-Employed Enrolment Drive (SEED), aimed at increasing pension coverage for those in the informal sector.
Introduced in May 2023, the SEED initiative has made significant strides in expanding financial security among Ghana’s self-employed workforce, marking a major milestone in pension coverage efforts.
During a news briefing organized by the Ministry of Information in Accra, Minister of Employment, Labour Relations, and Pensions, Mr. Ignatius Baffour Awuah, shared this update.
He emphasized that SEED was created to address the persistent challenge of inadequate pension coverage for self-employed workers, who make up a large segment of the labor force.
The initiative provides self-employed individuals with customized benefits and flexible contribution options, aiming to offer them the same level of financial security as those employed in the formal sector.
“With the launch of SEED, we are making pensions accessible to every Ghanaian, regardless of their employment status.
This initiative is a significant change for self-employed individuals who previously lacked the means to secure their future through pension contributions,” Mr Awuah explained.
He reported that in the first half of 2024, SSNIT collected 90.8% of its projected private sector contributions, totaling GHS 2.4 billion. This was slightly below the expected GHS 2.6 billion.
The Minister noted that contributions from the public sector exceeded expectations, with SSNIT collecting GHS 3.2 billion, which is 144% of the projected GHS 2.2 billion.
Additionally, the SEED initiative has already brought in GHS 52.6 million in contributions, and this amount is expected to increase as more self-employed individuals enroll in the Scheme.
“Our focus is not just on expanding coverage, but also on ensuring that these contributions translate into meaningful benefits for our members.
“The success of the SEED so far is a testament to the trust that self-employed Ghanaians have placed in SSNIT to safeguard their future,”Mr Awuah added.
He highlighted that SSNIT’s total assets have experienced significant growth, rising from GHS 15.2 billion in December 2016 to GHS 71.69 billion by March 2024. This represents an impressive 350% increase over seven years.
These assets are crucial for investment, infrastructure development, and job creation, supporting broader economic growth in the country.
The Minister reaffirmed the government’s dedication to the prudent management and safeguarding of pension funds.