National Bank of Rwanda (BNR) wants Parliament to accelerate the passing of the pending bills related to insurance and pension regulations to pave way for more investments in private pension schemes.The laws cover liquidation and dissolution of insurance business and licensing pension service providers and operating standards of the pension schemes.In its recent monetary policy statement, BNR says it would ensure legal infrastructure for non financial institutions.A robust legal framework, according to BNR, is highly desirable because it raises public confidence in the country’s business environment.Director of Pensions at Rwanda Social Security Board Emmanuel Kayitare, told Business Times that once passed, the laws would give guidelines for private pension schemes, registration, operations and monitoring strategy.“There is potential in private pension schemes, and am optimistic that the bill will bring more investments in the sector,” he offered.Kayitare noted that neighbouring Kenya has above 1,000 private schemes and that once the environment is clear, Rwanda will explore its potential. It is estimated that there are 40 private pension schemes in the country.“(There are) no clear guidelines, anyone can invest and decide to go away with people’s pensions,” Kayitare said.Social security covers largely salaried workers representing eight percent of the working population. The pension sector assets, excluding private pension schemes, grew by 14 percent to Rwf189.39 billion from Rwf166.78 billion in 2011 and 2010, respectively. Total contributions also increased by 27 percent to Rwf35 billion as of June last year compared to Rwf28 billion in the same period in 2010.However, the coverage is still low compared to middle income economies where coverage is at least 25 percent. The National Social Security Board merged with La Rwandaise d’Assurance Maladie (RAMA) to be referred to as Rwanda Social Security Board.BNR promised to strengthen non banking institutions through information sharing and partnerships with sister regulatory bodies in the region and internationally to promote professionalism.
