NSSF Uganda turns to Airtel Money to widen informal sector savings

KAMPALA. The National Social Security Fund (NSSF) is seeking to widen its reach among Uganda’s informal and emerging workforce by partnering with Airtel Money to make voluntary retirement savings accessible through mobile phones.

The renewed partnership between NSSF and Airtel Mobile Commerce Uganda Limited, which operates Airtel Money, is intended to increase enrolment and contributions to Smartlife Flexi, the Fund’s voluntary savings product targeting people outside the traditional formal employment system.

The initiative comes as Smartlife Flexi’s membership and savings continue to grow. As of August 28, the scheme had attracted more than 130,000 members and accumulated assets worth Shs199.3 billion, less than two years after its launch.

NSSF Deputy Managing Director Gerald Paul Kasaato said the partnership with Airtel Money would help the Fund reach Ugandans who may not have regular salaries or access to conventional retirement savings arrangements.

“Smartlife was created to extend social security coverage to all Ugandans in the formal sector and the informal sector, as well as the diaspora,” Mr Kasaato said.

“Our partnership with Airtel Money enables us to reach more people where they are, using a trusted digital platform that they interact with daily.”

Under the arrangement, Airtel Money customers will be able to enrol for Smartlife and make contributions through their mobile phones.

The service is designed to accommodate workers whose incomes may fluctuate, including traders, boda boda riders, farmers, entrepreneurs and self-employed professionals.

The minimum contribution is Shs500, while transaction charges can be as low as Shs150, according to the two institutions.

The low entry point is intended to make voluntary retirement saving accessible to people who may not be able to commit large amounts of money regularly.

Airtel Mobile Commerce Uganda Managing Director Japhet Aritho said the partnership was part of the company’s efforts to use its digital platform to connect customers to financial services.

“At Airtel Money, we are committed to providing solutions that improve the lives of our customers. Through this partnership with NSSF, we are making it easier for Ugandans to access long-term savings through simple and convenient digital channels,” Mr Aritho said.

He said the service would enable people to save regardless of how frequently or irregularly they earn.

Mobile platform

Airtel’s more than 20 million subscribers provide NSSF with a large potential market for expanding voluntary social security coverage.

The partnership will use Airtel Money and other digital channels to encourage more people to enrol and make regular contributions.

The two organisations also plan to conduct awareness campaigns through their digital platforms, social media, customer activations and community outreach programmes.

Financial literacy activities will form part of the campaign, with the partners seeking to educate potential savers about the importance of long-term financial planning.

The renewed partnership highlights the growing role of mobile money in expanding access to financial services beyond conventional banking.

For NSSF, the focus is also on extending social security to a workforce that is increasingly made up of people in informal employment and those with irregular incomes.

Smartlife Flexi allows such workers to make voluntary contributions towards their future financial security without being tied to a conventional employer-based arrangement.

Mr Kasaato said the product was intended to allow Ugandans to begin saving regardless of their income level.

The partnership with Airtel Money is expected to help address some of the barriers that discourage people in the informal sector from saving, including limited access to formal financial institutions, irregular earnings and the perceived high cost of making small contributions.

For Airtel Money, the partnership provides an opportunity to deepen the use of its mobile financial services beyond everyday transactions such as sending money, paying bills and purchasing goods.

The initiative also comes amid efforts by financial institutions, government agencies and private-sector players to increase financial inclusion and encourage households to build longer-term savings.

NSSF says the expansion of voluntary savings is critical because many workers outside formal employment do not have access to conventional employer-supported retirement schemes.

By combining NSSF’s social security expertise with Airtel Money’s mobile network and customer reach, the partners hope to bring more Ugandans into the formal savings system.

The success of the initiative will, however, depend on sustained public awareness, trust in digital financial services and the ability of workers with irregular incomes to maintain contributions over the long term.