Social protection sector value hits 24tri/-

ARUSHA: THE government has highlighted significant achievements in Tanzania’s social protection sector, noting that the total value of social security funds has more than doubled from 10.43tri/- in 2020 to 24.20tri/- as of December last year.

These achievements coincide with the expansion of the Household Safety Net Programme under the Tanzania Social Action Fund (TASAF), which in its second phase alone has benefited over 1.37 million households, approximately 5.5 million people, through grants exceeding 1.55tri/-.

Minister of State in the Prime Minister’s Office for Labour, Employment and Relations, Mr Deus Sangu said that the programme is implemented in phases.

The first phase reached 1.1 million households with services valued at 968bn/-. Following a 2013 assessment, the second phase was launched in 2020 and ran through September 2025, benefiting 1.37 million households. During this period, the government also supported temporary employment programmes that reached over 600,000 beneficiaries, providing wages totalling more than 214bn/-.

“These initiatives have strengthened household resilience, improved disaster preparedness, and contributed significantly to the socio-economic wellbeing of beneficiaries,” said Minister Sangu.

He added that the government will continue implementing the Household Safety Net Programme as part of its National Social Protection Policy and Vision 2050. Speaking on behalf of President Samia Suluhu Hassan at the opening of the Social Protection Sector Stakeholders’ Meeting at the Arusha International Conference Centre (AICC), Mr Sangu said these results reflect policy and legal reforms initiated since 2018.

He further noted that membership in the Public Service Social Security Fund (PSSSF) and National Social Security Fund (NSSF) funds has increased by 106 per cent over five years, while fund investments have grown to 20.13tri/- in government securities, land assets, and shares.

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Beyond pensions, Mr Sangu praised the Workers Compensation Fund (WCF) and National Health Insurance Fund (NHIF) for continuing to provide compensation to workers and health services to citizens. NHIF established in 1999 and operational since 2001, now serves 1,391,000 contributing members and 5,426,000 dependents, about 8 per cent of the population.

To expand coverage, Minister Sangu officially launched the 2023 National Social Protection Policy and the Self-Employed Citizens Scheme for the informal sector. The programme aims to include farmers, pastoralists, and small entrepreneurs in formal social protection, covering risks such as old age and disability.

He stressed the government’s commitment to enhancing citizen welfare through research on financing non-contributory social protection in partnership with TASAF.

The Prime Minister’s Office, Labour, Employment and Relations, is responsible for coordinating social protection, a key tool in combating poverty caused by illness, aging, disability and workplace accidents. Under the new policy, the government seeks to integrate contributory social protection through NSSF, PSSSF, and WCF with non-contributory assistance for vulnerable households, creating a unified and robust system.

The 2023 National Social Protection Policy introduces a modern approach to expand coverage to historically underserved groups. Reforms from 2018 made NSSF the sole fund responsible for serving self-employed citizens, who constitute over 80 per cent of the national workforce, as part of a strategy to ensure all Tanzanians receive comprehensive social protection.

To implement this vision, NSSF launched the National Social Protection Scheme for Self-Employed Citizens in the informal sector, known as “Hifadhi Skimu.” The scheme allows members in agriculture, livestock, fisheries, small-scale mining, arts, motorcycle transport (bodaboda) and small businesses to contribute small amounts according to their income through mobile phones, banks, or agents.

The system is flexible, allowing members to make retroactive contributions for up to 12 months or prepay for 12 months ahead as their income permits.

Meanwhile, Minister Sangu expressed gratitude to the sixth phase government for clearing a historic debt of 4.46tri/- owed by social security funds. He said the government has paid 95 per cent of this debt, inherited from before 1999, improving liquidity and efficiency in service delivery to members.

“This milestone reflects the long-term reforms initiated in 2018 to implement Article 11 of the Constitution, which mandates support for citizens during old age, illness, and disability,” said Sangu.

He added that clearing these debts has accelerated timely pension payments, brought economic stability to retirees, and reflected President Dr Samia Suluhu Hassan’s genuine commitment to protecting citizens’ rights.