adminFrom Leonard Ncube in Victoria Falls
THE National Social Security Authority (NSSA)’s proposed building society for civil servants will be operational by August, Public Service, Labour and Social Welfare Minister, Prisca Mupfumira, has said.
NSSA has said the new institution, to be called Social Security Building Society Bank of Zimbabwe, will cater specifically for civil servants and low income earners who often struggle to access affordable housing loans.
“NSSA will soon be opening a building society to help those on the lower end of the market who’re major contributors to NSSA. We’ll be opening the bank in August and we’re left with one or two regulatory issues that are being handled,” said Mupfumira on the sidelines of a NSSA seminar in the resort town on Wednesday.
She said the setting up of the new building society was in the interest of all Zimbabweans and would support formalisation of the informal sector.
“The bank will cater for everyone including civil servants to access money at affordable interest. We’re ploughing back to the community and workers especially in agriculture, small to medium enterprises and infrastructure development,” said the minister.
About $5 million is expected to be injected as seed capital for the bank.
The seminar was attended by technocrats from social security organisations in the Sadc bloc – under the theme: “Improving contribution collection and compliance to strengthen social security financing”.
Minister Mupfumira also said her ministry and NSSA would soon be rolling out countrywide road shows to educate the public about their rights at work after retiring and death as NSSA contributors.
She said some people were not claiming their dues because of lack of information.
“NSSA has been communicating through the press and we’ve lined up road shows countrywide including rural areas to educate people. We’re starting immediately as we’ve already agreed that this is what’s going to happen.
“The ministry and NSSA are working together on this and we urge local authorities, councillors and Members of Parliament to help in the awareness,” she said.
There have been concerns that NSSA was reportedly not keeping records of contributors and beneficiaries, which is why some people were failing to access their dues.
Mupfumira said the social security entity’s books were in order and it was the beneficiaries who were less informed, as she accused employers of failing to educate their workers about the claims process.
She also said NSSA only invests surplus money into infrastructure, after making sure all dues are paid up, contrary to claims that contributors’ money was being used to buy properties.
In his opening remarks, NSSA CEO James Matiza said social security systems were critical for stimulating economic development.
Bongani Moyo
Online Reporter