Boda boda, taxi drivers to join NSSF savings plan

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The National Social Security Fund (NSSF) has announced a partnership with the United Boda Boda Riders Cooperative Union (UBRCU), the Federation of Taxi Operators and the Bus Drivers’ Advocacy Forum to mobilise members to save with the Fund.

The partnership, launched in Kampala on October 15, is part of the Fund’s push to widen social security coverage to more informal workers through its voluntary saving product, SmartLife Flexi.

An analysis of the Smartlife Flexi portfolio reveals that about 70% of those enrolled are micro savers, mostly from the informal sector. About 50% list business as their source of savings.

SmartLife Flexi, which was launched 11 months ago, has so far attracted 44,698 members who have saved a total of sh36.4b.

“We have always admired joining the NSSF, but it was previously reserved for the corporates. NSSF is good compared to other investment alternatives because it supports you to save with a purpose,” Rashid Ssekindi, chairperson, Federation of Taxi Operators, said.

Frank Mawejje, chairperson Boda Boda Union, said that as leaders of the union, they have about 1.5 million riders who need financial literacy and economic empowerment.

“We will make sure that our riders do not miss out on the annual pay day of over sh2 trillion in member benefits,” he said.

Patrick Ayota, NSSF Managing Director, said the boda boda sector presents a strong opportunity for the Fund to extend long-term savings to workers who have often been excluded from formal retirement schemes.

“Uganda’s labour force is estimated at over 20 million people, yet only 2.4 million are currently contributing to the Fund, less than 12% coverage,” Ayota said.

“As we embark on our new 10-year strategic direction, the Fund’s goal is to increase national social security coverage to 50% of the workforce by 2035, representing 15 million active members. The boda-boda sector, with over 1.2million riders, makes it a high-impact entry point.”

Fred Senoga, Business Product Advisor at UBRCU, said the partnership will support riders to save consistently from their daily income.

“We are targeting to recruit one million boda boda riders saving sh1,000 daily,” he said. The boda boda industry is considered Uganda’s second-largest employer after agriculture, with about 85% of riders under the age of 35.