VP Mpango advises Africa to protect social security funds

ARUSHA: THE Tanzanian Vice President, Dr. Philip Mpango, has emphasized that while Social Security Funds in Africa serve as a vehicle for infrastructure investment, it is vital to ensure that members’ contributions remain safe and sufficient to meet the core objectives of these funds including protecting against socio-economic shocks and combating poverty.

Dr. Mpango made these remarks on July 10, 2025, during the opening of the 14th International Policy Makers Conference on Social Protection in Africa, held at the Arusha International Conference Centre (AICC). He stressed the importance of carefully assessing the types of projects being funded, warning that unfeasible projects could undermine the funds’ ability to serve their members effectively.

The Vice President cautioned against poorly planned, overly expensive, or overly complex infrastructure projects that are difficult to manage. He noted that such projects could burden the funds and significantly disrupt service delivery, including delays in payments or financial losses that could have been avoided through early and thorough feasibility assessments.

In a broader appeal, Dr. Mpango urged experts attending the conference to develop strategies that enhance the contribution of Social Security Funds to socio-economic infrastructure development, particularly in rural areas.

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He explained that investment in rural infrastructure would help uplift communities, improve productivity, reduce poverty, and slow rural-to-urban migration.

He further pointed out that, according to available data, Africa faces an annual infrastructure financing gap estimated between USD 68 billion and USD 108 billion.

This, he said, highlights the critical role Social Security Funds can play in bridging the gap and accelerating infrastructure development through strategic and sustainable investments.

Nevertheless, the Vice President underscored the need for stronger collaboration among governments, the private sector, and social protection stakeholders to ensure that policies, guidelines, and investments strike a balance between fund sustainability and member welfare. He stressed that prudent and transparent management is key to ensuring Social Security Funds remain a vital pillar of Africa’s development.