African states urged to adopt innovative drive for pension
President Muhammadu Buhari has called on African countries to adopt innovative practices in pension management and social security to advance the continent’s agenda of addressing economic and social challenges.
President Buhari who was represented by the Head of Service of the Federation, Mrs. Winifred Oyo-Ita, made the call Tuesday in Abuja while declaring open the 3rd edition of the World Pension Summit ‘Africa Special.’
He emphasized the need for a paradigm shift from the old pension scheme to the new contributive pension scheme which he said has enabled Nigeria to save a quantum sum of N5.83 trillion both in cash and assets.
Most African countries are facing serious economic challenges, therefore there is every need for the leaders to look inward and initiate reform programs that will bring about inclusive development and pension when well-structured can contribute a lot, the President stated.
He therefore, encouraged the delegates to participate effectively at the summit to initiate innovative ideas that would revolutionize pension in the Africa and propel the continent to rapid economic development.
In her welcome address, the Director General of the National Pension Commission (PENCOM) Mrs. Chinelo Anohu-Amazu said that there has been resurgent growth over the last decade, with the Continent recording, on the average, a 5% increase in GDP after a long period of faltering economic performance.
According to Anohu-Amazu, this renaissance has been, among other things, essentially sustained by unique African entrepreneurial and innovative spirit; the success stories of emerging industries, and smaller innovative initiatives such as the portable irrigation technology helping Sub-Saharan small holder farmers grow crops out of season.
She equally urged the participants to contribute to deliberations geared towards achieving the objectives of entrenching sustainable pensions and social security systems in Africa, saying “these innovations undoubtedly provided the foundations for transforming the Continent over the next decades.”
The DG also said that indeed, Africa is at a critical turning point in its history. Citing a recent World Bank report on Africa’s Demographics which was published in 2015 states that countries in Sub-Saharan Africa have experienced impressive and sustained economic growth and development over the past 15 years.
Speaking further Chinelo Anohu observed that cutting-edge Infrastructure is critical for economic growth and social progress adding that extant indices shown that Africa’s infrastructure remains by far the most deficient and costly amongst developing countries.
Said she: “In many cities, the challenge of urbanization and the need for modern infrastructure is already evident. One-third of urban residents in Sub-Saharan Africa are located in 36 cities, each with more than one million inhabitants.
“The United Nations estimated that by 2025, the population in Lagos and Kinshasha would reach 18.9 million and 14.5 million, respectively. To put this in context, it would be the equivalent of combining the current populations of London, Berlin and Madrid, which stand at 15.42 million based on 2015 population figures.”
However, the DG stressed that bridging Africa’s infrastructure deficit will require sustained spending of about US$93 billion per annum, which translates to about 15% of Africa’s GDP.
“This huge challenge, I believe, can be surmounted by a coordinated, multifaceted approach to development and the integration of domestic funding sources such as pension funds, and foreign institutional investors.
She pointed out that the theme of the theme of the summit “Pension Innovations: The African Perspective”, would, to a great extent, resonate with delegates and provide a platform for the exchange of ideas and experiences on innovative practices in pensions and social security.
