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Rwanda continues to post impressive economic growth figures as it makes strides towards Vision 2020. However, it is not lost to many economic analysts that the growth rates have not been commensurate with the level of domestic savings and private investments.
A good pool of long term domestic savings is imperative in stimulating private investments and the private pension subsector is key to broadening and deepening financial markets.
High level of domestic savings, coupled with private sector investment, will be one of the key engines in driving the Rwandan economy to achieving the aspirations of Vision 2020 of transforming the economy into a middle income.
With the pensions subsector accounting for only 17.2% of the total financial services sector contribution as at June 30 2017, there is more to be done by policymakers to promote voluntary retirement savings.
The pensions sub-sector contribution is principally made through Rwanda Social Security Board (RSSB) which continues to effectively play its part as a first pillar of social security while the other equally important pillars are left behind.