pinBox recommends an innovative, digital micro-pension scheme for Rwanda with AFR and the Ministry of Finance and Economic Planning at Kigali
A 6-member team from pinBox submitted its final report and recommendations for pension inclusion to Access to Finance Rwanda (AFR) and the Ministry of Finance and Economic Planning (MINECOFIN). The pinBox recommendations include the design of a new, voluntary, DC micro-pension program for Rwanda’s 6 million informal sector workers. pinBox has also submitted a detailed implementation blue-print that included a paperless and cashless product and process architecture based on unique, individual digital micro-pension accounts linked to the national ID. pinBox has recommended a new legislation to cement the principles of the proposed program that would use conditional, means-tested fiscal incentives (limited period co-contributions and insurance cover) to encourage early voluntary enrolments, as well as adequate and regular voluntary savings by target citizens. Other than the cost of fiscal incentives, the proposed program would not impose any significant new capital cost on the government as the program would be implemented by well-regulated private sector financial institutions. Retail services would be delivered by existing third-party finance distributors and community-based institutions.