Mozambican social security fund reaches historic milestone of over €1,100 million – Nyusi

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Mozambican social security fund reaches historic milestone of over €1,100 million – Nyusi

1:12 CAT | 13 Dec 2024

FILE - For illustration purposes only. INSS headquarters in Maputo city. [File photo: Folha de Maputo]

The Reserve Fund of the National Institute of Social Security (INSS) has grown by 429% since 2014, surpassing the historic milestone of 74 billion meticais (€1,106 million) in September, President of Mozambique Filipe Nyusi announced today.

“In the first years of my government, I drew attention to the fact that the INSS was not a chicken coop to collect money or chickens from the coop, but rather a safe reservoir for the workers themselves and this measure is being followed,” President Nyusi said during the inauguration of a new INSS building in Niassa.

In 2014, the Reserve Fund, which supports the payment of various social benefits and pensions, had 14 billion meticais (€209 million), and the exponential growth in its allocation was explained by the head of state by the enrolment of companies and workers to the contributory regime and by “good management”, which “must be continually improved”.

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“Throughout this process, we have been demanding rigour in the management of this public fund as a way of increasing credibility and trust in the system,” said Nyusi, also revealing that the current social security funding ratio is five active workers for every beneficiary.

“This is an indicator that needs to be improved,” Nyusi insisted. Over the last ten years – two terms of his government – “the expansion of the territorial scope of social security services, their target audiences and services is an undeniable reality”.

“The closer we get to users, the more we are called upon to improve our performance in order to respond effectively to the concerns that arise from the dynamics themselves,” he pointed out.

From 2015 to 2024, the country went from having 125,903 companies contributing to the social security system to 187,388, a growth of 49%.

“The system has 2,678,355 employees and 54,228 self-employed workers. We still currently have 130,999 pensioners, which means that the ratio between pensioners and beneficiaries is five active workers who contribute to one pensioner,” he concluded.

Source: Lusa