Extension of Social Security Coverage to the Informal Sector in Tanzania: Prospects and Challenges

1. Extension of Social Security Coverage to the Informal Sector in Tanzania: Prospects and Challenges Dr. Tulia Ackson

2. Outline • Introduction • Scope of coverage of social security schemes in Tanzania • Extension of social security coverage through specialised schemes • Conclusion IIRA Conference 2008

3. I: Introduction • Exclusion of the informal sector from the existing social security schemes • Questions: who is covered? What are the reasons for the exclusion of the majority? And What should be done? • Options available for extending coverage to the informal sector IIRA Conference 2008

4. Scope of coverage • Personal scope of coverage • Employment-based • Determined by: • legislation • The economy of the country • The nature of employment • Method of financing • Social security priorities • Sound administration IIRA Conference 2008

5. Scope of Coverage cont… • Nominal benefits • Lack of awareness IIRA Conference 2008

6. Extension through specialised schemes • Method of financing • Subsidisation • Government social priorities and political will • The size of the formal sector and the impossibility of formalising the informal sector • Variation of social security needs between the informal sector groups IIRA Conference 2008

7. Specialised schemes cont… • Inadequate benefits • Poor administration and service delivery IIRA Conference 2008

8. Challenges • Financial constraints • Absence of national solidarity • Problems of Compliance • Identification of common priorities and needs of the informal sector groups • Scattered rural population • HIV/Aids IIRA Conference 2008

9. Conclusion • Social security provisioning in Tanzania is exclusively available to the formal sector • Specialised schemes, irrespective of the challenges, are a viable approach for Tanzania’s excluded informal sector. IIRA Conference 2008